Target

• Why did Target Fail

  1. empty shelves
  2. rushed mess
  3. assumed that Canadian consumers = USA consumers
  4. arrogant
  5. overstocked in warehouses while shelves were apply
  6. had a data breech , 40 million debt +credit cards stolen, lost trust
  7. underestimated other retail competition -> Walmart, Costco, Giant Tiger
  8. skillset didnt match the challenge
• Why did they expand into Canada

  1. international expansion
  2. financial crisis
  3. plateauing in USA
  4. Canada was nearby geographically
  5. similar to USA
  6. cheap leases from Zellers
  7. positive consumer sentiment
• Mistakes Target made when entering the Canadian market

  • Supply chain issues: CAN is different from USA because we have a lower population density
  • Warehouses were too spaced out, not enough people to sustain the warehouses
  • Rushed expansion
  • Underestimated local competitors: Walmart, Costco
  • Managerial issues: didn't have the right skillset
  • Full warehouses but shelves were empty, more susceptible to running out goods
  • Didn't learn the culture they were looking for, flyer=CAN, coupon=USA
  • Weren't giving CAN what they wanted had private brands that CAN was looking for brand equity
  • Pricing was not competitive
  • Poor logistics + planning
  • Weak website -> lack of online presence
• What could Target have done better

  1. started smaller -> concentrated area
  2. take more time to plan everything, more primary research on CAN market, more organized
  3. more humble
  4. should have fully stocked one shelf instead of stocking two selves with half the product
  5. hiring Canadians who knew about the market
  6. shouldn't have underestimate Walmart
  7. Canadians wanted specific goods +services that they should have offered
  8. established a better online presence
• What did Walmart to Better

  1. came in with surgical precision
  2. managed customers better