Can one of North America's biggest retailers also be the comeback kid? Target is still focused on expansion, with plans to open nine stores this year (three arrived in March) and a new store in downtown Toronto in 2016.
The company has been beat up for an aggressive Canadian launch that lost nearly a $1B in 2013 and a data breach that affected millions. Target Canada's Lisa Gibson tells us the company is “laser focused” on improving business operations to drive better guest experience: “We have made significant progress in our in-stock levels." Target Canada pres Tony Fisher is with actress Blake Lively at a store launch event.
We shouldn’t be so fast to start the funeral for Target in Canada, says 360Consulting’s David Ian Gray, a retail advisor. The “unreal” scale of zero-to-124 stores in one year was “risky” David says, and its performance to date is a major concern at HQ, “but the immediate focus will be on improvement, not on retreat.” Some stores may be closed, but new ones may be built. (The only victim there are ribbons... if they don't' like to be cut.)
Cushman & Wakefield’s senior managing director, retail services, John Crombie says in terms of real estate, Target needs to continue to grow, especially in Ontario, which has the largest population base and low store count. Greenfield development has been a strong focus over the past year for Target, especially in urban locations in Ontario. “If the new CEO immediately stops new store development, then that will likely be a sign that they may be having second thoughts,” he says.
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