Posted on 05/14/2016 11:44:15 PM PDT by Morgana
IT was a spectacular disaster, a multibillion-dollar failure so abject that retailers are looking at it for what not to do.
As senior staff reveal just what went wrong, companies hoping to conquer Australia are looking at Target Canada to see what makes a global brand fall on its face.
The US chain — which is unconnected to the Australian one, although they share similar branding — expected to settle in to its neighbouring country with ease. Instead, customers quickly deserted the depressing stores with their empty shelves, poor service and broken technology.
Target Canada filed for bankruptcy protection after burning through $7 billion, muddying the brand’s reputation and putting around 17,600 people out of work.
So why did it collapse and, with international retail giants knocking down Australia’s door, how can other brands avoid getting burnt?
LOCATION, LOCATION, LOCATION
Target went all in, buying all of Canadian discount chain Zellers’ 124 leases for $1.8 billion in 2011. But the local ultra-low cost retailer hadn’t necessarily courted the same customers, so many of the locations were far from ideal for Target.
Even the Zellers CEO said it was “pretty surprising” Target paid so much for the stores, Canadian Business reported.
Once it had paid, the retailer was locked in to opening all locations as quickly as possible to avoid paying rent on unused buildings. The firm planned to do so within two years. There was no time for mistakes.
(Excerpt) Read more at news.com.au ...
Now they do this. Looks like they will be closing a bunch of stores here in America.
Bttt
“Now they do this. Looks like they will be closing a bunch of stores here in America. “
Let’s work on making sure that happens.
>>>>Let’s work on making sure that happens.<<<<<
Maybe they can get Mooch to make another public appearance in one of their stores (as if she would regularly shop there) and later publicly bitch about having to help someone get something off a tall shelf when asked for help by a shorter person. Oh wait, they already did that......
The reason why Target failed in Canada can be chalked up to four reasons.
1. Target could bring a lot of its signature products into Canada because US manufacturers weren’t willing to change their processes to account for Canada’s bilingual system, so Target wasn’t able to differentiate itself from other large department stores.
2. Target messed up in its ability to replenish its stores. When it sold out of something, it might have been two weeks before they could replace it.
3. The other retailers ensured Target couldn’t make a profit at any of its stores, because they allowed their locations near Target stores to lose money. Target, having to compete as best it could had to match prices and give up its profit in doing so.
4. Probably the biggest factor was that there were too many Target stores in Canada. Each of them were siphoning off its own customers from each other and causing every store to under perform. They might survived in Canada, if they only had a third of the stores it did.
I heard it was Wal Mart that did them in. I could believe that. Wal Mart is well organized and has stores everywhere.
It was everybody. Canadian retailers learned from their mistakes with Wal-Mart.
Embracing the LBGT community has turned out to be the retailer’s third rail, K-Mart, Penny’s and now Target. People will vote with their feet and money no matter what the LBGTs, who have wormed their way into upper management (and government), want, compell and dictate.
Well, they are a Target after all.
“Now they do this”
I don’t follow. Now they do, what? The article was completely about what Target did wrong in Canada. It was about how that could happen again if someone made the same mistakes.
It has literally ZERO to do with Target in the US or as a company now.
Read the article. It is actually fairly interesting. A total, “What If” piece but still interesting.
Now they do this. Looks like they will be closing a bunch of stores here in America.
Pretty common result when one puts politics ahead of business - better efficacy when one puts business ahead of politics.....GO TRUMP!!!!!!
BOYCOTT TARGET PETITION
IF YOU OBJECT TO CONFUSED GENDERS IN YOUR BATH, LOCKER OR DRESSING ROOM. YOUR SMALL SONS ARE NEXT AGENDA
https://www.afa.net/action-
Man accused of choking girl, 8, in restroom of South Loop restaurant
http://www.chicagotribune.com/news/local/breaking/ct-man-accused-of-choking-girl-8-in-south-loop-store-20160513-story.html
Long ago our family had gotten to the saturation point with boycotts, and while we maintained a white list versus a black list, we hadn’t boycotted the Target because both Wal-Mart and K-Mart had their own problems, and people still have to buy stuff and live their lives.
The bathroom business pushed Mrs. Sivana over the edge on that one. It no longer is a theoretical construct of where a tiny slice of revenue goes (and is therefore remote cooperation rather than support).
Their Canadian stores sucked. Nothing worth buying. Far different from American Targets.
They basically did Zellers 2.0 whereas there was a reason Zellers went down. Nothing worth buying.
Cheers,
Jim
As is Khols, Walmart, JC Penneys,Sears, etc....
And that will leave... No-one to buy from!
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