Photo: Courtesy of CBC and Damian Dovarganes/Associated Press

As a frequent customer of supermarkets (such as Superstore, T&T, and Wal-Mart), I was intrigued to hear about Target’s grocery deal with Sobeys Inc.. In my mind, Target acts as an “American” version of Zellers; the logo and labeling within the two stores are both red. Furthermore, speaking from personal experience, even the store layout and products sold (e.g. in store clothing brands) look strikingly similar.

Thus, I exercise caution in thinking that Canadian Target stores (opening in early 2013) will be able to compete with industry giants like Wal-Mart. However, despite the risk, Target has built up an easily identifiable brand throughout its history.

Regarding its deal with Sobeys Inc., Target will surely benefit from working with such an established supplier. Since opening their first store in 1947, Sobeys Inc. is “one of only two national grocery retailers in Canada”.

After weighing the pros and cons, I feel that Target has a significantly larger chance at success, compared to Zellers’ venture into groceries (as discussed in an earlier Comm 101 class). They have all of the tools necessary to succeed, but only time will tell what the outcome will be.