Target Canada still suffers from inventory problems






Target is a retailer that expanded into Canada from the US. Although some media reports suggest that the retailer is doing better, it seems that Target Canada still suffers from widespread gaps in its inventory for shoppers. This causes problems of basic convenience for Canadian shoppers who are seeking headache-free shopping. The photos which accompany this article were taken within 10 minutes of visiting a Target Canada outlet.

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. Initially, the company struggled to make a mark in the Canadian market and even suffered from decrease in sales.

More than halfway through its first year in this country, the U.S. retailer’s sales here were falling well below initial expectations. Some reports do suggest that the company was able to improve its sales and market positioning in Canada. But, it still suffers from many issues, including inventory problems. A report published CBC News informs us that even the executives at Target Canada admit the company stills needs to do a lot, to progress in the country.

“Executives at the retailer said Wednesday that while the chain has made progress in Canada, a lot more work is needed if the chain is going to have a bright future here.”

Although it has been more than a year since the retail giant launched its operations in Canada, it has not been able to win over the shoppers in the country. Their reaction to Target has been less than desirable with tales of higher-than-expected prices and empty store shelves rampant. As you can see in the attached images, the shelves are empty and people do not have any options to choose from.

Target needs to understand that in order to succeed, it needs to solve its inventory problems and make sure that the shoppers get access to whatever they need. The CBC report also talks about the massive losses suffered by Target Canada and also by its parent company in the US.

“After a year of operations, the chain said it had lost almost $1 billion here. Worse still, the chain's U.S. performance weakened at the same time, meaning the retailer was facing a two-front war with no source of strength to support itself.”

Ever since Target commenced its operations in Canada, it has been unable to meet the expectations of the Canadian shoppers. One of the chain's biggest problems early on in Canada was a supply chain issue that saw stores run out of popular merchandise, angering customers. What goods they did have were more expensive than what Canadians were expecting, given the chain's comparatively rock-bottom U.S. prices.

There were claims that the store has been able to solve its supply chain or inventory issues. However, in reality these issues still remain. If Target wants to stay here for a long time, it needs to meet the expectations of the shoppers in the country. 


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