The American retail giant Target entered the Canadian retail market in March 2013, when it opened 124 retail stores in Canada. Since then, the company has been trying hard to lure the Canadian consumers and increase its sales. The consumers have realized that Target is pricier than its rivals in Canada and the company’s effort to change the consumers’ perception has failed.
An article published by The Province tells us how the retailer’s sales have been falling.
“More than halfway through its first year in this country, the U.S. retailer’s sales here are falling well below initial expectations, Target Corp. executives told an analysts’ meeting in Toronto on Wednesday, admitting they are engaged in an uphill battle to change consumers’ longstanding shopping habits.”
The smoke screen created by the public relation department of the retail giant has fallen. The consumers in Canada have realized that Target has failed to provide them with ‘low cost’ offers, similar to what it offers to its US customers. However, the article posted by The Province informs that Target Canada will not change its prices.
“Target CEO Gregg Steinhafel reiterated to analysts that Target Canada does not need to change its prices, which are competitive with that of ‘price leader’ Walmart.”
Only time will tell if Target Canada will be successful in wooing the Canadian consumers.