Rosa Jin

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