Shasin Hamal's Blog

Target bought 220 Zellers stores and is now expanding into Canada.  Target is the second largest discount retailer behind Walmart in USA.  Target sells clothes, food, furniture, drugs, sporting goods, electronics, and almost everything you can imagine of for low prices.  Reports made by Barclays Capital have assessed that Target’s arrival in Canada could impact retailer stores such as Walmart, Canadian Tire, Sears, Old Navy, etc.   Many retailers sell nearly the same products as Target, but those retailers, for example Canadian Tire does not sell the same products as Target.  Also, Target sells their products at a cheaper price, which attracts many more customers.  It would be smart for Target to open stores near areas where families have low to average incomes instead of opening stores near North Vancouver.   For example, in Canada 42% of Old Navy stores will be within 1 km of Target, which will threaten Old Navy’s sales because clothes are also sold in Target.

Having wiped out much of Zellers already, Walmart will be Target’s main competitor because of the similar variety of products and pricing that both offer.  Establishing stores in the steady Canadian economy opens up many possibilities for Target to gain profits. Their lower prices and adequate products are something I certainly won’t want to miss.

External Resources:

Which Canadian retailers are most at-risk with Target’s Canadian debut?    

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