Anita Kong's Blog

American retail expansion into Canada will force Canadian retailers to step up their game.  As the US has dominated Canadian music, television and fashion— retail markets are no exception.  Major companies have been bombarding the Canadian industry with American owned stores.  Customers will inevitably be attracted to new products and trends.  Thus providing American retailers an advantage to market their products.

Target, a major American retailer, will be taking over Zellers store locations throughout Canada.  This will cause Canadian retailers to be threatened by Target’s impact.  Since Zellers is a retail of Hudson’s Bay Company, the elimination of store locations will force the company to assess and improve its supply chains.  Hudson’s Bay Company has announced that it will be laying off 210 employees to increase efficiency and cut costs.

Hudson’s Bay Company’s retail stores target middle-income families and cater to various consumer needs such as groceries and clothing.  However, Target is a close competitor in such that it will offer substitutes at a lower price.  As a result, even the most patriotic Canadian would be tempted to switch their loyalty to American stores.  This leads me to wonder: “Will American businesses be the dictators of Canadians in the future?”

References:

http://toronto.ctvnews.ca/hbc-to-lay-off-210-toronto-employees-1.985520

http://www.theglobeandmail.com/report-on-business/hudsons-bay-shoppers-drug-mart-cutting-jobs/article4593077/