In what has to be one of the biggest retailing fiascos of all time, mass merchandiser Target has closed its 133-store Canadian division less than two years after it opened. Billions of dollars were lost.
Target’s misadventure in Canada holds many lessons for all retailers, including the very simple lesson that catastrophe invariably comes close on the heels of a retailer’s failure to offer consumers products they want at the price they’re willing to pay.
How could a retailer as big as Target is in the United States fail to grasp such an obvious concept as it moved across the border to Canada?
The answer is that pressures of competition and real estate forced hasty and ruinous decisions. [Read more…]