Target Canada Fails!

[The Penguin]

Lately I keep hearing in class that Target Canada is going bankrupt. It's easy to get information on this in a Goolge news search

Target Canada was not able to deliver the lower prices they promised. It most cases, their prices were higher compared to other stores. Another thing, they didn't know Canada well and missed lots of opportunities. For example, they didn't know Canada haves Thanksgiving in October. Because of that, they were not able to offer good deals for Thanksgiving compare to other stores. I guess the lesson from all of this, a foreign country needs to do better research before conducting business in a new country.

 

[Judge]

Not bankrupt. Just a corporate business failure, with Target Canada amounting to 5% of their total stores equivalent to a loss of 15% of U.S. profits. Target's problem was in not understanding competitive pricing but also in a breakdown of local supply markets to properly maintain inventory. The only thing worse than not having a good price was not having the goods on the shelves. An amazing failure of fundamentals for such a major player in retail.

From my perspective I find Target just a slightly more upscale version of Walmart with somewhat higher prices and less of a selection in general.

I also notice that the Sony Corporation is closing all their stores in Canada as well. Retail is a brutally tough sector to compete in locally or globally. Not a sector I'd want to invest in. Just too many variables.

 

[Flinty]

I went to Target thrice. I was hoping for Walmart with somewhat more quality stuff. What I found was epic fail, right up to the fact that the store I went to smelled like a one-week-old's diaper. (Not kidding.)

Now there are four retail spaces that will be sitting empty in this city including one that the city is still doing massive construction on the area roads. Bring back Zellers! (Being wistful for the days three whole years ago when this neighbourhood still had a proper grocery store.)

Investment guess (purely a guess): short Lululemon.

 

[AsheSkyler]

Even I know Canadians celebrate Thanksgiving before Americans. I never remember exactly when, but if I'd been planning on a Canadian equivalent to Black Friday, I'd have done the research. =/

 

[The Penguin]

Today Target is having an liquidation sale up to 30% off yet most items are 10% off. When Zellers and other business have liquidation sales, they have much better ideas. I guess Target don't understand what real liquidation sale is.

 

[wyverary]

Today Target is having an liquidation sale up to 30% off yet most items are 10% off. When Zellers and other business have liquidation sales, they have much better ideas. I guess Target don't understand what real liquidation sale is.

Wow. When we are really trying to get rid of stuff, we do AT LEAST 50% off lowest sales price. Sometimes more. It can be better to accept a slight loss than to never sell something and have to write it off completely. If Target were serious they'd be doing a lot more than a mere 30%! (Though maybe some fools think that's a reasonable deal...)

 

[Judge]

Apparently their shareholders are indifferent to it all. Guess they feel quite comfortable in third place as a large scale retailer. The economics of arrogance.

I don't get it either. But it all does make me wonder about large-scale tax write-offs.

Target Corporation: NYSE:TGT quotes & news - Google Finance

 

[The Penguin]

There new slogan is "We are off target"

 

[Judge]

Hey friends across the border. Just wondering, how does the Hudson Bay Co. stack up against the low-price retailers?

Haven't been in their stores since I was in Kamloops...many years ago.

 

[The Penguin]

Well HBC use to have a discount store called Zellers . They could't compete with Walmart and other issues they having so they closed down. Then Target bought the stores and F'd things up.

As for the store The Bay, there prices is comparable to Sears. HBC is a old company started in 1670.

 

[Judge]

Well HBC use to have a discount store called Zellers . They could't compete with Walmart and other issues they having so they closed down. Then Target bought the stores and F'd things up.

As for the store The Bay, there prices is comparable to Sears. HBC is a old company started in 1670.

I see...didn't realize that Zellers was connected to HBC. Too bad there aren't more choices in low-cost retail in general.

 

[The Penguin]

I see...didn't realize that Zellers was connected to HBC. Too bad there aren't more choices in low-cost retail in general.

Well we have discount stores called Giant Tiger and The Bargain! Shop. They are not as big like Walmart and other big box stores, but it is still a fare size store. There is also many dollar stores. The biggest franchise is Dollarama.