The arrival of ‘U.S discounter Target corporations’ is all set to shake the Canadian retail stores and increase the competition in the market. Target is a huge american retailer which is investing millions of dollars on their new stores in Canada. Target took over all the existing Zellers stores and has published a list of ‘125 stores’ which will be opened Canada wide by the beginning of 2013.
It is expected to “generate as much as 200– to 300-per-cent more sales-per-square-foot than Zellers, whose estimated average is about $150, said Edward Sonshine, chief executive officer of RioCan Real Estate Investment Trust.” It is going to provide a great competition to the Canadian stores such as Sears, Walmart and Canadian Tire and steal their sales. Other clothing and home decor stores like Winners and Toys R Us are also afraid of loosing business. My analysis show that this new incoming wave of Target will force the Canadian retailers to expand their business as only the fittest will survive in the market.
Further Reading: http://www.theglobeandmail.com/report-on-business/on-target-time-the-race-to-prepare-for-a-new-rival/article4573270/
Martin Chou’s blog on Foxconn’s inhumane working conditions talked about the serious issue of exploitation of the poor in developing countries. I totally agree with him on the fact that multinational corporations are exploiting the poor people in developing countries such as China, India, Bangladesh etc and taking the advantage of their poverty to increase personal profits of the company.
With my research I found out that not only Foxconn, but all the big companies like Gap, Nike, American eagle, Guess etc are doing just the same. Nike has its manufacturing factories in China, Indonesia and Bangladesh where it has been criticized for it “sweatshops”. Nike is one of the top sports clothing brand accused by allegations of sweatshops and child labour. Workers in Indonesia complaint by saying that their “supervisors frequently throw shoes at them, kick them and call them dogs and pigs”. These labourers work all day long like slaves and not even earn enough for a basic living. This inhumane unethical practice needs to be stopped by the government as the rich will always keep getting rich by exploiting the poor. The governemnt of all these developing countries need to set a minimum wage which can atleast fulfilll the basic necessities of the people.