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Target is shutting down its Canadian operation.


Boges

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I don't care what millions of purchasers think, they don't pay for my TV's.

True dat....high end Sony televisions were famously good going back to innovative aperture grille Trinitrons and XBR CRTs. This excellence was carried over into the WEGA and Bravia lines. Sony always had a high end or pro-sumer offering in audio and video. Sylvania, a rival CRT television manufacturer in the USA, would actually say "What about Sony ?" in its advertisments. And yes...Beta was better than VHS !

The Sony Store concept catered to a consumer that sought and would pay more for better electronics.

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When a local Future Shop location closed, the vacant space was eventually filled by Wholesale Sports Outdoor Outfitters. It would be pretty cool if the empty Target here was taken over by Cabela's.

-k

I was surprised their first foray into BC was in Nanaimo (and not the Lower Mainland or Victoria) and only 5 minutes North from the current Wholesale Sports location......great store though.......the one to watch though is Crappy Tire, as certain stores are also dipping their toes back into firearms sales and with really good price points (only ~10% markup on what they pay for them) when compared to Wholesale and Cabela's.....

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http://www.cbc.ca/news/business/target-s-package-for-ex-ceo-matches-package-for-all-17-600-canadian-workers-1.2927893

Target’s "employee trust" package for its Canadian workers, announced last week, amounts to $70 million ($56 million US). It’s designed to provide each worker with 16 weeks of pay.

Depending on who’s doing the calculation, the golden handshake handed to ex-CEO Gregg Steinhafel last May is in roughly in the same ballpark.

Fortune Magazine put the value of his total "walk-away" package, including stock options and other benefits, at $61 million US, including severance of $15.9 million.

Do a crap job for the company, lose billions, get rewarded so you can live the rest of your life in opulence! This guy won't be up for any "CEO of the Year" awards...

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http://www.cbc.ca/news/business/target-s-package-for-ex-ceo-matches-package-for-all-17-600-canadian-workers-1.2927893

Do a crap job for the company, lose billions, get rewarded so you can live the rest of your life in opulence! This guy won't be up for any "CEO of the Year" awards...

So sad...he will cry all the way to the bank. And the U.S. Treasury will get a lot more tax than the CRA will get from ex-Target Canada employees.

Bring back Zellers !!

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  • 3 months later...

It looks like many of these locations are getting scooped up.

http://www.cbc.ca/news/business/lowe-s-canada-acquires-13-former-target-locations-1.3069111

http://fortune.com/2015/05/08/walmart-target-canada/

http://www.cbc.ca/news/business/canadian-tire-to-acquire-12-former-target-locations-1.3063272

I think Lowes is an amazing Home Improvement store. Beats Home Depot or Rona any day of the week.

Edited by Boges
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  • 8 months later...

Here's an article about some of the reasons Target Canada failed.

http://www.canadianbusiness.com/the-last-days-of-target-canada/

It seems the software they chose didn't work right, they bit off more than they could chew by buying ALL of the Zellers stores and they couldn't get inventory to the stores.


By fall of 2013, Target’s three distribution centres—approximately four million square feet in all—were overflowing with goods. Tractor-trailers sat idling in the yards, waiting to be unloaded. The situation got so bad that Target scrambled to rent a handful of storage facilities to accommodate all of the inventory flooding in. The process of determining which goods to send to these rented facilities was haphazard, making it difficult to track things down later. “It was like a massive black hole,” says a former employee. Another recalls feeling shocked when visiting the rental warehouse in Vancouver. “It was the most rickety, Podunk thing you can imagine,” says the former employee, likening it to the treacherous labyrinthine underworld in Indiana Jones and the Temple of Doom. American expats, accustomed to the efficiency of the U.S. operations, were flabbergasted. Waves of senior staff were flown in from Minneapolis, but because they were unfamiliar with the technology Target Canada used, there wasn’t much they could do.

The issues at the distribution centres caused havoc downstream. Stores might end up with an abundance of some products and a dearth of others. The auto-replenishment system, which keeps track of what a store has in stock, wasn’t functioning properly, either. Like many other parts of retail, replenishment is an exacting science that can go haywire without correct data. At Target Canada, the technology relied on having the exact dimensions of every product and every shelf in order to calculate whether employees need to pull more products to fill an empty rack. Much of that data was still incorrect, and therefore the system couldn’t be relied upon to make accurate calculations. The problem became immediately apparent when Target opened its first three test stores. Fisher made the call to shut off the system and replenish manually. That meant store employees had to literally walk the floor and check each shelf—a laborious, error-laden process. (Auto-replenishment wasn’t switched back on until later that year.)

Edited by Boges
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Reads like Canadians were happy with and always expected a crappy Zeller's shopping experience, but raised their expectations for Target because of what they had seen in the United States.

Where do you get that from the story? The Target distribution network couldn't be replicated.

They bit off way more than they could chew. A store like Lowes is succeeding in Canada because they started slow and didn't try to open 100 plus locations in a year.

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Reads like Canadians were happy with and always expected a crappy Zeller's shopping experience, but raised their expectations for Target because of what they had seen in the United States.

People were initially excited by the idea that their crappy Zeller's experience might be replaced with a reasonable competitor to Canada's existing department stores. Their initial excitement vanished when they arrived at Target and found such an inept selection of products. It was simply a waste of time shopping there. Target was worse than Zeller's ever was.

-k

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People were initially excited by the idea that their crappy Zeller's experience might be replaced with a reasonable competitor to Canada's existing department stores. Their initial excitement vanished when they arrived at Target and found such an inept selection of products. It was simply a waste of time shopping there. Target was worse than Zeller's ever was.

-k

Hard to believe, but very true! Hell, even Kmart was better.

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Many Target Corp. stockholders (like me) never wanted the expansion into Canada. Target was already struggling with its online commerce engine and there was a huge data breach to deal with during the Target expansion. I am glad Target cut their losses and kept the stock-outs away from our still very popular (and well stocked) Target and Super Target discount stores.

Canadians who want to shop at real deal Target stores will do as they have always done...cross the U.S. border.

Happily, TGT stock is still paying a dividend, and we love that Target Red Card !

Edited by bush_cheney2004
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  • 6 years later...

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