Target Canada's strategy doomed from the start
Target promised Canadians to deliver an equivalent experience to what Canadians have come to expect from shopping in its American stores. However, it is apparent that Target's strategy was doomed from the start. You might wonder how? When Target was pursuing a takeover of Zellers, what they should have pursued was a take over of the Zellers name, and stock, while simply retraining existing employees and managers who are familiar with the Canadian market so-to-speak. But that is not the kind of deal that Target reached with Hudson's Bay Co.
Instead, The Bay ended up closing all but three Zellers stores across Canada, along with the sale of its entire stock, and the mass firing of its employees. Target in its apparent arrogance decided that as "Big American Company" it could start from essentially zero employees, zero managers, zero executives and zero stock and "steam roll" the Canadians "in their igloos".
Reports of mass customer dis-satisfaction were predictable. Target in its own apparent idiocy and arrogance had put itself in a position that it may never catch-up. Once a large retailer so thoroughly upsets so many customers as Target, it takes a lot of money to win them back. Target is so far in the abyss, the only decision that Target might need to make to prevent a protracted drain on its U.S. profits is to "cut its losses" and retreat back into the United States, just like K-mart, A & P, AMC theatres, Safeway, and the U.S. soldiers who invaded Canada in the War of 1812 who operated under a similar leadership arrogance.
In the below video, you might notice Target Canada 's efforts at damage control. This representative can't seem to make up his mind whether Target is promising the same prices as U.S. stores or prices that are "competitive" with local markets, but not with its U.S. pricing structures. This video symbolises the apparent chaos in Target's direction in Canada.