With the recent opening of Target in Lansdowne Centre, Richmond, I was intrigued with what the Canadian reception of this American based company would be like. Not too great, apparently.
Target Canada Ad
When Target first announced in late 2010 to the public it’s plans to expand in to Canada, it was reached with massive excitement and it’s debut became “the most anticipated arrival of a foreign retailer in a generation”, as described by a Globe and Mail article.
Despite overwhelming buzz, Target’s sales have fallen well short of predicted numbers. This is because customers were familiar with the stores before they even launched in Canada due to cross-border shopping. Consequently, many consumers expected for Target Canada to match the cheaper US Target pricing.That is, of course not the case.
So, if Target is not providing goods at a cheaper price, what exactly is it’s point of difference among other retailers such as Walmart and Shoppers Drug Mart? New brands that Canada has never seen before, of course! I believe that as time passes and the price perception stint dies down, Target will remain profitable by offering new items to Canadian soil. According to Porter’s Five Forces, Target’s large supplier power and unique competitive advantage will allow the company to sustain in Canada.