Month: September 2012

What does the arrival of Target mean?

Target Corp., the American discount retailer whose red and white logo is recognized all over North America, is preparing for its shiny new launch into Canadian malls, as the existing competition braces for impact. Companies like Winners, Home Outfitters, The Gap, etc. will definitely feel the effects of Target’s arrival, but in comparison, stores like Sears and Wal-Mart will be the ones hit the worst, as they share many of the same target demographics of consumers and the categories of  products. In order to have a chance at staying in the competition, they will need to hang onto their differences (home appliances, mattresses) to separate themselves from the incoming rivalry.

And although this new competition may seem like a huge weight on Canada, there are those that are thriving off of this newcomer: moms.The discounts and accessibility of Target are making households very happy indeed, largely due to the fact that we no longer have to drive miles and miles south in order to get our hands on these great deals and products. In addition, the real estate market is expected to benefit by an incredible amount, since “allowing more retailers both from the U.S. and Canada to expand here will drive up values for retail real estate in Canada.” (Hudson Bay Co.’s owner Richard Baker).

With all these factors in play, what should we expect in reality when the first Target store opens its doors?

Sources:

http://www.theglobeandmail.com/report-on-business/on-target-time-the-race-to-prepare-for-a-new-rival/article4573270/comments/

http://www.financialpost.com/news/Target+Canada/4106808/story.html

Photo:

http://www.financialpost.com/news/Target+Canada/4106808/story.html

After dismissing allegations of international bribery for seven years, Wal-Mart is now investigating their own potential violation of the Foreign Corrupt Practices Act.

In 2005, Sergio Cicero Zapata, a former executive of Wal-Mart de Mexico, came forward, confessing to his lengthy contributions in the illegal expansion of his company. Upon notifying one of Wal-Mart’s senior lawyers, who further examined the case, they discovered just how much damage had been done:
$25 million (!) in bribes allowed such a rapid development of stores in Mexico so that “competitors [did] not have time to react.” In fact, 20% of today’s Wal-Mart stores are in Mexico.

Accusations of such scandals have been supported by various suspicious events, such as: the promotions of several executive members closely following the appearance of reports (suggesting this corruption), illegitimate-looking documentation which used “secret codes,” and the firing of an auditor (who had just previously released an audit showing incredibly large payments to gestores in time with Wal-Mart’s sudden growth).

In today’s society of “money-hungry” workhorses, where are our principles and values? Whether this investigation debunks or confirms the suspected charges, it is impeccably clear that Wal-Mart needs to not only acknowledge this issue, but also take a more ethical approach in going about their business, compensating for the immorality of their latest moral mistakes.

Sources:

http://finance.yahoo.com/blogs/daily-ticker/busted-wal-mart-caught-massive-bribery-scandal-goes-150100011.html

http://www.nytimes.com/2012/04/22/business/at-wal-mart-in-mexico-a-bribe-inquiry-silenced.html?pagewanted=all&_moc.semityn.www

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2999