Case Study: Target Canada

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In 2013, Target opened 21 stores across Ontario and 124 stores in all 10 provinces but did not succeed the way the U.S based company planned. The Target Canada President, Tony Fisher stated, “We have to make sure that, from an inventory and purchasing strategy, we remain flexible, we remain liquid, so we cont get over confident” (Schermerhorn Jr. & Wright, 190). Target Canada became overly confident and had be overwhelmed by the demand of products by customers which resulted in lack of products. Many customers were complaining that the shelves and aisles did not have the products in stock, “shoppers complained on social media sites about empty shelves” (Schermerhorn Jr. & Wright, 190). Due to the lack of products on the shelves, many customers went to other department stores, such as Walmart to purchase their products. …show more content…
& Wright, 190). The U.S based company wanted to compete against Walmart but Target’s pricing were much higher than Walmart’s pricing.Walmart allows customers to get the best prices for products all the time. Target Canada did not have the low prices to draw customers into the store, like Walmart does. They should have matched or beat Walmart’s pricing to increase revenue and gain customers. Another thing the company did wrong was, they opened to many stores all at once. Instead they should have opened a few too monitor what the company can improve on. Instead of spending millions and perhaps, billions on stores. Fisher, the president explained, “The company planned to open 124 stores in all 10 provinces in 2013. It was important to open stores as fast as possible so we could start providing a return on Target’s investment” (Schermerhorn Jr. & Wright, 190). After all, it takes many years to see profit in a company, there is no rush. Opening 124 stores in a matter of a year will not

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