Mass Retail Industry
Target: Coming North to Canada:
Aelish Jennings

In 2011, Target announced their intention to do business in Canada with plans to open and renovate 105 former Zellers locations by 2011 in Phase 1 of the vast expansion plans. The majority of the existing Zellers locations will become Target stores in approximately 10 Canadian provinces with the 180,000 sq ft Target head office located in Mississauga, Ontario. Target forecasts substantial growth in Canada as 70% of Canadians are familiar with the brand and approx. 30,000 Canadians have a Target US credit card. What does the opening of Target mean to Canadians? Competition, Competition, Competition!

Canadians are ecstatically willing to embrace another option as it relates to competitive retail prices. Before the unveiling of the Target/Zellers takeover plans, Canadians benefited from bargain dollar deals as advertised by Wal Mart Canada. Target will compete directly with Wal Mart and differentiate the layout of the stores stylistically by erecting wider aisles and improving the flow of the shopping experience by eliminating clutter such as the palletized product directly on the floor in the center of the aisles. With the unveiling of Target in Canada, does this mean that other US based retailers will look to Canada as their next location to establish global retail domination?

Canada can be perceived as an extended US state from a business standpoint. That said, with our strong economic markets, sound banking system, and growing population Canada can offer a strategic footing for US based retailers to grow their revenues and gain new customers. As Canadians begin to show more confidence in terms of discretionary spending, Target will be a competitive option that will not be ignored. Today it is Target, perhaps tomorrow it will be the rise of Macys, Nordstrum, and various other recognizable US based retailers.

At McKenna, we are ready to support new vendors shipping into Target from a logistics standpoint. Our head offices are also strategically located in Mississauga reducing transportation costs. McKenna can become your domestic shipping point for replenishment orders into Target. If you plan on distributing your product in Target, do not hesitate to call McKenna to get you started in the right direction. Our experience with shipping compliant shipments to the mass retailer industry is unparalleled. Call today to find out how we can do logistics right for you and your customers!

 
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