Andrew Li's Blog

In recent business news, it’s been well established that the American discount retailer Target has purchased over 200 of the Canadian born Zellers stores.  With plans of expanding into Canada and outside of the US for the first time, Target is set to convert the 200 plus Zellers stores into its discount retail outlets so popular south of the border.  Target will automatically compete with the other American discounter, Wal-Mart, as both retail discount fashion and home items among other things.

As a Canadian consumer, it means more choice and perhaps better value in price and quality of products.  For Canadian retailers, it means more competition.  Like Target, Fairweather Ltd, which also operates International Clothiers, is a Canadian clothing retailer that also offers cheap and chic clothing items to middle-class consumers. However, in addition to competing for sales in similar markets, Fairweather and Target are both vying for the right to the ‘Target’ trademark name.  Fairweather owns the Canadian trademark rights to the ‘Target’ name after purchasing it from another Canadian retailer Dylex Ltd over a decade ago.  With no stores operating in the ‘Target’ name in the past 3 years, the American Target wants its trademark released from the hands of Fairweather.  Coincidentally with the announcement of Target expansion in Canada, Fairweather has expressed their desire to open several ‘Target Apparel’ stores over the next decade as well.

Fairweather and Target are now entering a 250 million dollar court battle over a six letter name, and rightfully so.  For Target, the name and brand represents over 100 years of retail success and goodwill required for Canadian expansion.  For Fairweather, it means a multi-million dollar payout for a brand they purchased from another ailing Canadian retail store just ten years ago.