Group No 13: Pallavi Bisani – (03) | Hiral Mehta – (18) | Liona Quiney – (29) | Khyati Patodia – (27)

1 Introduction

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 About TARGET

• Target Corporation, formerly (1911–69) Dayton Company and (1969–2000) Dayton-Hudson

Corporation, American mass-market retail company operating large-scale food and general-
merchandise discount stores
• Corporate headquarters are in Minneapolis, Minnesota.
• The majority of their general merchandise stores offers an edited food assortment, including
perishables, dry grocery, dairy, and frozen items.
• Nearly all of the stores are larger than 170,000 square feet
• Their small format stores, generally smaller than 50,000 square feet, offer curated general
merchandise and food assortments.

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About TARGET

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Business Model

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2 Success of TARGET in USA

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Success Story in USA

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 Reasons for Success in USA

• Turning its stores into destinations

• Its products are in demand
• Web strategy
• Avoiding distractions
• Counting on private brands
• Filling in gaps
• Trendsetters
• Modernized Supply Chain

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3 Failure of TARGET in Canada

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 Failure Story in Canada

Target expanded its
operations by leasing up to
220 sites that were
operated by Zellers Inc, at
C$1.825 billion
2011
Target was preparing for
the launch of the store &
initiated the data week to
overcome the flaws in the
supply chain.
Fall
2012
Target had already opened
124 stores which were In 2014, the organization
facing issues like empty structure of Target Canada
shelves, data breach, changes.
pricing issues.
Fall 2014
2013

2012 Feb Feb Jan

Target took over leases at
189 Zellers locations in
Canada and planned to
open between 125 and
135 stores from 2013 to
2015.
2013
The grand opening of
Target Canada was set to
begin in one month but
the company was not
ready but they still went
ahead with the openings.
2014 2015
Target releases its annual
Target Corp. announces
results, revealing a loss of
that it will be closing all
$941 million from Target
133 locations in Canada.
Canada operations in its
first year.

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Out of Canada, By the numbers
Here's a quick look at some of the numbers related to Target's departure of the Canadian market:

133 $5.4-billion
Target stores closing Expected pre-tax losses
17,600 on discontinued operations in Q4,
2014
Employees losing their jobs
$70-million $275-million
Projected pre-tax losses
Target's financial package for on discontinued operations in fiscal
employees 2015
that will provide a minimum of...
16 weeks 681 days
total number of days in operation
compensation including wages and before announcing closure
benefits

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TARGET’s losses in Canada

Source: Target Corp.

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 Reasons for Failure in Canada

• Researching the market

• Data quality
• Data Loading
• Empty Shelves
• Stock overflow
• Distribution problems
• Malfunctioning of Point of Sale Systems

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 Reasons for Failure in Canada

• Gaming the system

• Fostering ill will in local communities
• Target Store Locations in Canada are less than Ideal
• Intense Competition-Aggressive Wal-Mart pricing
• High Prices
• No Online presence
• No Proper Training

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 Lessons Learnt

• There was no reason or purpose for Target to enter the Canadian market.
• They didn’t really bring anything new or differentiated to the Canadian retail scene, and they blew
their budget on buildings. The fact the Canadian market has less active retail space isn’t a
sufficient reason.
• Company’s willingness to grow and expand can be appreciated, but such billion dollar forays
need to be well planned, and executed gradually in major centres.
• The Canadian market has its own shopping culture, yet as you saw from the pictures above, any
shopping experience needs to create a purchase action. Target didn’t create that desire to
purchase.

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 “
Don’t bite off more than you can chew and
make sure your instore merchandising
makes customers want to buy.

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Thank You

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