個案資料

In early 2015, Target announced that its Canadian operation would seek bankruptcy protection and abandon all the retail locations that it had acquired from the Zellers discount chain less than two years before, a move that would eliminate 17,000 jobs. This article examines how management strayed from the company’s founding principles when planning the expansion, which led Target to enter Canada with mutated brand DNA. <br><br> In the 20th century, Target staked out a niche for itself in the United States by catering to value-oriented shoppers seeking a high-quality experience. At that time, it carefully selected locations that fit its business plan and practiced industry-leading inventory management. When Target Canada first opened its doors, inventory control issues cooled the excitement of many Canadian consumers. Pricing was problematic, especially for cross-border shoppers who did not find the same deals that Target offered in the United States. The plan to open so many stores in a short period stemmed from an opportunistic, aggressive takeover of Zellers. In Canada, Target lost the ability to take things slow while compromising the ability to get locations right. As a result, management gave up control over the Target experience that had won the company so much goodwill.

• Brand management
• inventory management
• department store
• cross-border expansion
• IBJ Insights