Department Store Target to Open in Canada

U.S. Department Store Target has announced 105 stores to open in Canada next year, the first stores of the chain to open outside of the United States. Target, however, is no stranger to Canadian consumers. Many Canadians are loyal Target shoppers already. When Canadians travel across the border to shop, many of them stop at Target. Target's low cost approach has worked for years on both American and Canadian consumers, as many loyal Target consumers have said that they will "walk in there with a list of two items and walk out with a receipt for $144. The way Target does this is by their trendy appeal. When a customer buys one item that is trendy at the store, it makes everything else in the house stand out because they aren't new or trendy.

But the problem is that once Target comes to Canada, the approach may not work with Canadians anymore. For many, the fact that the items at Target were only available in the United States was a big part of the appeal. With all these items being available right down the street, will the appeal to Canadians fade?

I think Target should re-think opening so many stores in Canada at once, just to test the waters. Starting with a low number of stores (10?) is a good idea, because if things go wrong and no customers come, it is easier to shut them down. 105 stores will be a lot harder.

http://arts.nationalpost.com/2011/05/27/close-to-home-but-off-target/