Off Target

   U.S retail giant Target is pulling the trigger on all their 133 Canadian stores after sluggish sales in the 2 years they've been open. Industry insiders say the move is not a surprise, given the fact Canadians didn't seem to react positively to Target's move here.
   A lot of people I've spoken with say the biggest part of the problem is pricing. Goods in Canada still cost more than the same item in American stores just across the border. Another problem it seems, is Canadians never really "took" to Target, even though anticipation was great when they bought out Zellers.
   So, what happens now? Target stores will remain open during a court-supervised liquidation period. They are also working to ensure 17,600 now surplus employees get at least 16 weeks severance, and work with an advisor to sell off it's real estate. The exit could cost the Minneapolis based firm 500 to 600 million dollars.
   One question now is what are malls where Target stores are located going to do? In a lot of them, Target was a main anchor, replacing Zellers. Their departure is going to leave a considerable hole not only physically, but financially as well. Just how long the exit strategy will run was not said.
   I've never shopped south of the border, and visited just one of the Canadian stores once. I hate to say it, but I was less than impressed with what I saw, both in terms of merchandise and customer service. Perhaps Target didn't do enough research into the Canadian market, studying buying trends here.
   I do feel sorry for the 17, 600 sales associates being affected by this, and hope they can all find new employment.

TTFN