Target announces plan to revive Canadian operations

Author:
Updated:
Original:

Target Corp. announced Wednesday some significant changes to its operations in Canada, in an effort to turn around the retail giant's poor performance there over the past year.

The Minneapolis-based chain lost nearly $1 billion last year, as customers complained that the 120-some Canadian Target stores had a poor product selection, frequently ran out of merchandise and charged higher prices than other retailers.

The disappointing performance of the Canadian stores contributed to the dissatisfaction with former CEO Gregg Steinhafel, who was forced out in May. His replacement, Brian Cornell, started just this week.

Target unveiled a three-part strategy which will focus on solving those issues, according to a statement from Mark Schindele, president of Target Canada.

Schindele, who took over the troubled Canadian operation at the end of May, said Target Canada will match prices on local competitors' weekly ads, as well as the prices from online Canadian units of Amazon, Walmart, Best Buy, Sears and other retailers. It's also aiming to smooth out its inventory processes to make sure merchandise is shipped to stores more frequently.

Target says it will also expand its product lines, and as part of that effort it announced a partnership with Canadian designer Sarah Richardson, who will create a home decor line that will be in stores next year.

“We know we still have work to do, but the entire Target team is focused on continuous improvement so that Canadian guests will have the Target experience they deserve,” said Schindele.

A University of Toronto marketing professor, David Soberman, told MPR News that Target can still win over customers in Canada, noting that they're just looking for a good place to shop.

"People go into the store. They have expectations. If they don't like it, they don't shop there. They don't go around being angry with Target for the next three months," he said.

The company will release its latest quarterly earnings next Wednesday, and last week it cut its profit outlook, based in part on poor sales in Canada.

Next Up

Grand casino

Grand Casino celebrates 30th anniversary with more than cake

Hundreds of thousands of winning dollars are on the table.

Brodd defense witness

As defense starts, expert argues Chauvin's use of force was reasonable

Use-of-force expert Barry Brodd testified on behalf of the defense.

Chet Holmgren

Chet Holmgren named Minnesota's Mr. Basketball

Minnehaha Academy produces back-to-back award winners for the second time in state history.

Byron Buxton

Red Sox out-slug Twins in chilly matinee

Bobby Dalbec hit two RBI doubles to hand the Twins their third straight loss.

Governor Tim Walz

As CDC urges Michigan to shut down, Gov. Walz watches closely

Walz says there are no imminent plans to dial back.

ambulance

Man, 26, collapses and dies at event center shortly after altercation

The incident was reported Saturday night in Stearns County.

Allina Crossroads Campus

Allina Health will reopen Buffalo clinic after fatal mass shooting

A timeline about when the clinic will reopen hasn't been released.

Related