What will Target bring?
Sep 24th, 2011 by Karen Lee
Target has made their motives on expanding to Canada clear early this year. Their plans will begin with buying out Zellers, the Canadian retail chain. Now, Target, the second largest discount retailer in the US, aims to play a big role in Canada’s grocery market. They have made plans with Sobeys, Canada’s second largest food retailer, for their supplies.
It is no surprise that Target wants to continue their involvement in the grocery scene as they did in America, but they are taking risks. Canadians have many other choices of supermarkets, so Target can expect competition. With increased operation expenses in Canada, will they fare well in this new market?
A smart move they made was to get their supply from Sobeys. By pairing up with a well-known local produce supplier, they are further helping to stimulate the Canadian market. With all facts considered, Target will probably have a relatively smooth road paved for their entry to Canada. However, it will definitely pose a threat to other Canadian retail stores as Akaash Bali’s blog explores. Target offers lower prices that many stores cannot compete with. Their arrival may bring good news to consumers, but to businesses, it means tough competition.
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Image credits: Fake Target logo