![\"GUELPH,](\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/MAC04_TARGET_POST02-300x201.jpg\")
<\/a><\/p>\nInventory planning:<\/span> Target swiftly opened 124 stores in the first two years of operation and never implemented a proper supply chain system. As a result, its shelves were overstocked with certain products, and was severely under-stocked in other areas thus leaving its shelves bare [iv].<\/p>\nPricing<\/span>:\u00a0Canadian shopper sentiment was truly and deeply affected when Target introduced the same products available in the US\u00a0at a markup in their Canadian stores. About three-quarter of Canadians live within 160 km (100 mi) of the US border, and with increasing allowances of bringing back products, \u00a0Canadian’s frequently visited Targets south-of-the-border and generally viewed the company with high regard. The clean, upscale environment with quality offerings at discount prices, provided a breath of fresh-air when compared to local Canadian discount retailers [v]. Canadian\u00a0shoppers were\u00a0eagerly optimistic when news of Target’s foray in to Canada first broke. For numerous reasons, one of which\u00a0is pricing, Target\u00a0broke the hearts of Canadian shoppers, who would have otherwise guaranteed the company great success!<\/p>\nLocation, Location, Location<\/span>: The reason Target was able to launch over a 100 stores in two years is because they had taken over the lease of now defunct retailer Zeller’s. The Jan. 2015 Fortune article states, “But the reality is that most Zellers stores were dumpy, poorly configured for Target\u2019s big-box layout, and were in areas not frequented by the middle class customers Target covets.” Travelling to Targets was a hassle for urban Canadian shoppers and hence making the stores easier to avoid.<\/p>\nCompetition<\/span>:<\/p>\nAnticipating Target’s arrival, various discount retailers with an established presence in the Canadian market such Walmart, Loblaws, Canadian Tire, etc.\u00a0improved prices on offerings and introduced a wider variety of selection thus squeezing Target out of what was already a competitive space [vi].<\/p>\n
Ultimately, poor execution on various fronts, and increasing losses forced Target to withdraw from the Canadian market as quickly as they had entered it.<\/p>\n
<\/p>\n
Sources<\/span><\/p>\n[i] \u00a0https:\/\/hbr.org\/2015\/01\/why-targets-canadian-expansion-failed<\/p>\n
[ii]\u00a0http:\/\/fortune.com\/2015\/01\/15\/target-canada-fail\/<\/p>\n
[iii]\u00a0http:\/\/www.ftsmodules.com\/public\/texts\/valuationtutor\/VTchp3\/topic8\/topic8.htm<\/p>\n
[iv]\u00a0http:\/\/www.slate.com\/blogs\/moneybox\/2015\/01\/15\/target_closing_in_canada_these_pictures_sho
\nw_why_it_failed.html<\/p>\n
[v]\u00a0http:\/\/www.cantechletter.com\/2015\/03\/the-overlooked-reason-target-failed-in-canada\/<\/p>\n
[vi]\u00a0http:\/\/globalnews.ca\/news\/1774769\/heres-why-target-failed-in-canada\/<\/p>\n
<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Lessons learned from Target's botched entry into Canada.<\/p>\n","protected":false},"author":1156,"featured_media":2227,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-2226","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"\n
Target\u2019s failed entry in to Canada - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/targets-failed-entry-in-to-canada\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Target\u2019s failed entry in to Canada - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Lessons learned from Target's botched entry into Canada.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/targets-failed-entry-in-to-canada\/\" \/>\n<meta property=\"og:site_name\" content=\"Technology and Operations Management\" \/>\n<meta property=\"article:modified_time\" content=\"2015-12-08T19:26:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Cover-photo2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"958\" \/>\n\t<meta property=\"og:image:height\" content=\"464\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/targets-failed-entry-in-to-canada\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/targets-failed-entry-in-to-canada\\\/\",\"name\":\"Target\u2019s failed entry in to Canada - 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![\"target-info\"](\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/target-info-172x300.jpg\")
<\/u><\/strong><\/p>\n![\"GUELPH,](\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/MAC04_TARGET_POST02.jpg\")
<\/a><\/p>\n