Summary
Target's ambitious entry into the Canadian market in 2013 ended in a $2 billion loss within 2 years, prompting their exit from the country. Despite initial optimism due to similarities in consumer preferences with the U.S., Target faced challenges including the aftermath of the 2008 Sub-Prime Mortgage Crisis, unprepared local retailers, and struggles in adapting acquired Zellers stores to its business model. Understanding market nuances and adapting strategies is crucial for successful international expansions.
Target's Entry into the Canadian Market
Target's decision to enter the Canadian market in 2013 resulted in $2 billion in losses within 2 years, leading to their exit from the country.
Perceived Market Opportunity in Canada
Target believed that its success in the Canadian market was promising due to the proximity of Canadians to the U.S. border and the similarity in consumer preferences between American and Canadian shoppers.
Retailers Appeal to American and Canadian Consumers
The success of retailers appealing to American consumers in Canada, along with Target's acquisition of Canadian retailer Zellers, indicated a favorable market environment for Target in Canada.
Challenges Faced by Target in the Canadian Market
Target encountered challenges in Canada, including the impact of the 2008 Sub-Prime Mortgage Crisis, local retailers being unprepared for Target's entry, and difficulties in adapting Zellers stores to Target's business model.
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