The end has come for one of Canada’s largest discount department stores. It was announced last year that American company, Target, would be expanding into Canada by taking over the Canadian Zellers. But what does this mean for Canada?
Canadian department stores have the difficult task of competing against dominating American retailers. With the emergence of mega companies like Walmart and Costco, Zellers has been slowly fading into the background. Department stores are popular in the United States, with each one finding its specific niche to fit into. It is a different situation in Canada where it seems like department stores are losing their popularity and Zellers’ failure is in part due to its lack of points of difference which separate them when compared to other retailers. Its target is the mid to lower income demographic however other companies, such as Sears and Walmart, have slowly but surely taken over Zellers’ position.
With Target now entering the Canadian market in the near future, it is still unclear how successful it will be. Will Target be able to fiercely compete in a way Zellers was not able to? Only time will tell.
Article: With a healthy dose of humour, Zellers says goodbye