Canadian Tire’s executive staff have been busy analyzing Target, inside out, before the second-largest discount retailer of the US will soon make its way onto Canadian soil. Recently, Canadian Tire relaunched its e-commerce website and is working diligently to expand its product line. In addition to Canadian Tire, many other Canadian retailers will also be on their toes until Target’s arrival in 2013. Even if Canadian Tire is able to drastically expand its product line, many consumers will still choose to shop at Target. Why? I strongly believe that it’s because Target will be able to offer highly competitive prices in addition to exemplary customer service.

I think that Canadian Tire is overlooking the problem of poor customer service in their stores. Expanding their product line is a necessary change, but the level of customer service is what consumers remember most about their shopping experiences. In order for Canadian Tire to compete with Target, they will need to lower their prices, improve their product line and most importantly, address the issue of poor customer service. It will be interesting to see how long it takes for Target to wipe out its vulnerable competitors and take over the market with Wal-Mart.

Article:   Financial Post

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