January 31, 2012
Competitively priced store Target has Canada in its crosshairs...
The popular American discount store, Target, is headed for Canada. Close to 135 Target department stores are scheduled to open in Canada in 2013, following Target ‘s recent decision to acquire the majority of Zellers sites across the country. Zellers stores will go through major renovations before re-opening under the Target banner next year. The Canadian wholesaler, Sobeys Inc., has also formed a partnership with Target Canada Co. It was announced in late September that Sobeys Inc. would supply Target with select food and grocery products.
The arrival of this new chain on Canadian soil will have an important impact on shoppers and retailers, as Target is known to offer products at competitive prices. While Target will attract a large number of customers at their stores and drive traffic into malls where they are located, retailers will have to adjust to the competitive low prices that this popular discount store is able to offer its customers.
Target’s decision to do business is Canada suggests that opportunities for international retailers are numerous. While some retailers appear uneasy in regards to Target’s arrival, Brad Jones, vice-president leasing at Oxford Properties, a Canadian real estate company, recently said in an article published by The Star that “the real winner will be the consumer as Target raises the bar for competitors.”
If North America is your zone of interest, check out the conference The USA in 2012 – a perfect storm of investment factors at MIPIM 2012!
For further reading on North America, take a look at New Direction for the Americas, in the MAPIC 2011 Preview, p. 67, and read our interview with Jim Murdoch of Oberfeld Snowcap.
Image: Patrick Hoesly