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Business Schools Will Be Studying This Failure For Decades
#1
Quote:Target Canada was running out of cash

Target Canada was running out of cash and would have been unable to meet its payroll this week if it hadn’t filed for bankruptcy court protection from creditors, the U.S.-owned retail giant says in court documents.
Target announced Thursday it was closing all 133 Canadian stores after concluding there was no way to make them profitable within a reasonable time frame.
The move will put 17,000 employees out of work with about half of them in Ontario, where the retailer operates 55 stores, plus a head office in Mississauga and a warehouse in Milton.
It was a stunning reversal just four years after the cheap-chic retailer, dubbed “Tar-Zhay” by its legion of fans, announced it would enter the Canadian market. Canadians who had shopped its U.S. stores were thrilled it was finally crossing the border.
But the company’s first foray outside its home market faced serious challenges from the start, with customers complaining prices were too high, selection limited, and the stores frequently out of stock.
In documents filed with an Ontario Superior Court of Justice on Thursday, Target Canada says it opened too many stores too fast, encountered “significant problems” keeping the shelves fully stocked, failed to meet Canadians’ price and product expectations, and erred in choosing not to launch an online shopping presence.
“Many in the Canadian market expected TCC (Target Canada Corp.) to follow Target’s U.S. prices,” the company’s general counsel, Mark Wong, says in an affidavit filed in court. Instead, Target Canada opted to compete with other similar Canadian retailers which meant “generally higher prices” than Target’s U.S. stores.
Total incompetence on the part of Target. Most Canadians live within an hour of the US border and were very familiar with Target. I won't even enter a Wal-Mart store, but I like Target because the stores are clean and well lit. From the day the stores in Canada first opened about two years ago it wasn't unusual to find empty shelves, and the bargains shoppers were used to seeing in the US stores didn't exist in the Canadian stores. Many business students will be writing their thesis on this colossal failure for decades.[/php]
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#2
I saw that earlier and was amazed. Target is the preferred store here, way better than WalMart. They must have hired a mental giant to run the Canadian side.
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#3
This is amazing indeed. How they couldn't extend the supply line into Canada and adopt the same price policy as in the US, just for the sake of keeping things simple.
If poeple go to the US to shop at Target and the Canadian Target stores are not the same as the US ones, how do they expect it to be successful???
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