Target Canada: What Went Wrong
Stacey Ramos, Chitrita Narne, Daniela Carvajal
UCR Extension
Inventory Management
MGT X410.91
Rickey Slaughter
March 19, 2015
Table of Contents
Introduction.…………………………………………………………………..3
Problem definition…………………………………………………………… 4
Cultural Differences and Marketing Woes…………………………...4
Logistics and Warehousing………………….………………………..6
Recommendations……………………………………………………………7
Conclusion……………………………………………………………………11
References…………………………………………………………………….12
Introduction
Target Corporation is an American retailing company, founded in 1902, it is the second-largest discount retailer in the United States today. The company is ranked 36th on the Fortune 500 as of 2013 and is a component of the Standard and Poor’s 500 index. The first Target store was opened in 1962 in Roseville, Minnesota. The company grew to become the largest division of Dayton Hudson Corporation and was renamed as Target Corporation in August 2000. Today, Target has grown to 1,795 stores in the United States with 38 distribution centers, online business at www.target.com and an amazing aggregate of 366,000 team members worldwide. It began operations in Canada in March 2013 and operated 127 locations through its Canadian Subsidiary, Target Canada Co.
Regular rumors surfaced in the last decade about the company’s interest in expanding into Canada and in 2010, they publicly indicated such long-term plans. Target Canada co. formed in 2011 to oversee the company’s Canadian operations. The first Target stores in Canada were opened on March 5, 2013 in the Ontario communities of Guelph, Fergus, and Milton, close to one of their distribution centers, operating as test stores. In the span of 2 years, they had opened 133 stores across Canada. Although commercially successful, Canadian Target stores couldn’t live up to the high expectations because of their higher product prices and fewer ranges of products in comparison to their U.S....