Archived Target not doing well in Canada

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commie posted something like this in the chatbox a few days ago but I think it warrants a post.

http://www.huffingtonpost.ca/2013/0...ion_n_3779175.html?utm_hp_ref=canada-business

Basically, Canadians are not swayed by the higher prices (which is a cost of doing business in the country) and the lack of stock. Basically calling it a costlier Zellers.

Earnings report is not good and the stock price has dropped.

http://www.cbc.ca/news/business/story/2013/08/21/target-earnings.html

Will this mean anything for us in the states?
 

commiecorvus

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I think our brothers and sisters to the north were really looking forward to having Spot but probably thought the prices were going to be a bit more like they are here in the states.
That and the the way the company dumped all the union folks out on the street and made them reapply for their jobs wasn't helpful.
 
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Our store is slowly bouncing back. It takes a bit to settle into a community. I think people just expected some kind of super miracle store. There are some pricey stuff but most of it is really decent. Like any store you just have to look for the deals. Our store has some fantastic prices on selected items.
 

mrknownothing

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I work at a border store and a lot of my Canadian guests think that our stores up there didn't really live up to the hype.

Same here. They always tell me the prices are quite a bit higher and they don't have the variety that we have.
 

FlowbieCanuck

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Mine is slowly starting to solve its instocks problems. Also doesn't help that we opened during one of the slowest times of the year.
 

nib

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Which is why, Like COSTCO, Target NEEDS to be UNION FRIENDLY
 
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When Walmart first entered canada, they experienced some of the same problems. They bounced back and so will we . This month alone has brought an increase in guests to my store and our sales have been over budget every day. With all of the coming holidays , we have a great chance to improve our reputation throughout canada. We Can Do It :)
 

commiecorvus

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As someone who works up in Canada, I can tell you that nearly every department is undergoing a transition or major POG revision right now. Half of our stores are PTM'ed and it doesn't help that we still have ongoing in-stocks issues everywhere.

Gosh! Very sad event. . Going ptm, without selling at full price is not a good thing for spot.
 
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bab5crusade

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I work near the Canadian border. Let's just say that many Canadians rather drive two or three hours to shop at my store than back home. The Canadians are enjoying the power of their dollar.
 
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Ewwww. I agree with the dude that was captioning the pictures on that blog. "Not normal!" Transitioning and PTM should not mean that the store should look like it is having a 'going out of business' clearance event. Food and household chem was atrocious. I totally agree with him on single facing, Target is not a movie set....send some damn product and lets fill some shelf. No margin on pegboard.....
 
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I would love and hate to 4X4 that store. Love because theres likely nothing in the back room but hate because of the emptiness/flexing issues throughout the entire store. Target needs to get it together up north.
 

Cel

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Seems like about 20% of that is normal if poorly flexed/emptier than usual (shoes and holiday clearance, and god knows our pfresh looked like that after we clearanced out half the yogurt and before we flexed things over), but the rest is pretty extreme.
 

sigma7

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I think part of the ongoing problem is that they aren't consistently getting stuff for active pogs, so they look like that before they are MPG. Then they aren't getting in product for upcoming pogs either...so it's just snowballing. From what I've read anyway.

Those aisle are well zoned, I can't believe they would leave them looking like that if there was a reasonable amount of items to flex out back.
 
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Training everyone in Canada on the US systems, but then testing new software in Canada probably wasn't a good start. Plus the distribution wasn't up to snuff, but that's gotten dramiticly better. The in stocks are getting a lot better in the past couple months. With the stock is starting to flow better, it's starting to overwhelm the stores that just got used to flexing everything by the seat of their pants... those that lost process are on a "get to green" program where they are rated twice a week on about 20 indicators. My store, for example, is at 2 greens of 20... so we're giving people 10% of the brand experience - not something we're pround of but the whole team is determined to fix the issues. We have a really engaged team. Our ETL-HR likes to describe it as "parts of our store are broken but we will never let break our teams spirit". We celebrate every win, and have gained some very loyal (and understanding) customers. We're getting there.

Canadians had huge expectations of Target the demand overwhelmed the stores. So, yes, it's been a very rough roll out for Target Canada, but we're definitely getting better. (for example, 8 days ago we filled the 3 month PTL vacancy - with me!)
 
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I would hate to see Spot in Canada ....not only for the team members there...but we all know that sh.t rolls down hill...Spot will have to try to regain lost money by tightening the belt here In the States.
 
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