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On the other hand, there are plenty of success stories of foreign chains entering Canada. Target's rival Walmart has been reasonably successful in Canada, havin

On the other hand, there are plenty of success stories of foreign chains entering Canada. Target's rival Walmart has been reasonably successful in Canada, having over 400 stores. Target made a lot of mistakes entering the Canadian market, starting with leasing locations of dying Canadian chain Zellers and even still running them as Zellers for years, which didn't help building up the Target brand in Canada.

VancouverMan 2y ago
Target's approach was quite similar to what Walmart did in 1994, when Walmart entered the Canadian market. Walmart took over around a hundred or so of the long-established Woolco stores, and converted them to Walmart stores. The Woolco stores I'm aware of were then replaced with new larger Walmart-built store in the same area within a few years. I think Target's main problem was more timing rather than execution. In 1994, Canada still had a relatively strong middle class with money to spend, although that would eventually be harmed thanks to NAFTA, excessive government interference in the economy, and excessive immigration. By 2011 when Target showed up, Canada's middle class was already suffering, and it has only gotten much worse since then. All of the Target stores I ever visited in Canada were decent. The pricing typically wasn't as competitive as Walmart's was, but the Target stores were generally a nicer experience.
Kye 2y ago
They also messed up with their computer system. I forget the details from the account I read, but it had to do with trying to import the entire system from the US, database included, and spending more time fixing errors than actually selling anything. That database (if I recall right) included the sales data they used to predict demand and allocate stock, and it was completely wrong for the new market. It might have worked if they started with a few stores to work out the kinks and incorporate the data into their planning systems, but they went for a huge launch instead and couldn't keep shelves stocked because nothing was where it needed to be.

VancouverMan 2y ago

Target's approach was quite similar to what Walmart did in 1994, when Walmart entered the Canadian market. Walmart took over around a hundred or so of the long-established Woolco stores, and converted them to Walmart stores. The Woolco stores I'm aware of were then replaced with new larger Walmart-built store in the same area within a few years. I think Target's main problem was more timing rather than execution. In 1994, Canada still had a relatively strong middle class with money to spend, although that would eventually be harmed thanks to NAFTA, excessive government interference in the economy, and excessive immigration. By 2011 when Target showed up, Canada's middle class was already suffering, and it has only gotten much worse since then. All of the Target stores I ever visited in Canada were decent. The pricing typically wasn't as competitive as Walmart's was, but the Target stores were generally a nicer experience.

Kye 2y ago

They also messed up with their computer system. I forget the details from the account I read, but it had to do with trying to import the entire system from the US, database included, and spending more time fixing errors than actually selling anything. That database (if I recall right) included the sales data they used to predict demand and allocate stock, and it was completely wrong for the new market. It might have worked if they started with a few stores to work out the kinks and incorporate the data into their planning systems, but they went for a huge launch instead and couldn't keep shelves stocked because nothing was where it needed to be.