Walmart Canada will be ready for Target

by Allison Martell

Although a new threat for Wal-mart will arise from Target‘s plan to open stores in Canada, the world’s largest retailer does not seem worried. In an interview with Reuters, Wal-mart’s Chief Executive David Cheesewright stated that the company would not be making any big tactical changes to deal with Target’s arrival, as for them it’s not a matter of high importance or high urgency. Instead, Wal-mart will continue to expand their superstores and open new stores. The company already has more than 300 stores nationwide, more than double the amount that Target plans to open. Cheesewright explains that consumer confidence has been down for a few years now, and with the economy at a down point, consumers are more focused on value from their products. “Its tough, but stable,” says Cheeswright. This may not be enough for Wal-mart, as Target’s discounted retailing presence might force them to have to drop their prices. Cheesewright mentions that Wal-mart is prideful on it’s green initiatives (such as reduced packaging – sustainability), which not many other companies have.(POD)

This is a positive thing for Wal-mart, but it may not change a customers mind when considering which retailer to go to. Wal-mart does have a head start by entering Canada first, encouraging brand recognition, but many consumer’s want lower prices and if Wal-Mart can’t offer that, they may see their customers heading over to Target (threat of substitute). Wal-mart seems to think they have everything under control, but they may want to start seriously thinking about how to beat the competition.