Target Stores Failure

There were many factors responsible for the closure of target stores in Canada like insufficient stocking, higher prices, weak promotional efforts etc. But there were three major key element that ultimately led to the failure of target in Canada. These elements are listed as follows:
1. Inventory problem: Canadians were aware about target and had pretty huge expectations from them but the reality was completely different. Beautifully revamped stores couldn’t veil a useless production network and in store stock administration framework that left retires exposed and shoppers profoundly disillusioned. They were really disappointed when they saw the bare shelves.

2. Higher Prices: Despite so much reputation in minds of Canadians for target stores

across borders they discarded it when they found that prices for same materials of same brand were sold in these stores at higher prices than in United States.

3. Inappropriate supply chain: we can say that target was over ambitious and set its target to 133 stores by 2014 and hiring 17600 staff by the same time. Moreover building a supply chain from the very initial point was an uphill task which target failed to do so which ultimately led to the inventory problem explained above.

Also rivals like Walmart, Canadian tire did an excellent defense in response to target by ensuring more focus on consumers, better pricing etc.
In a nutshell it can be said that Target failure was due to its over ambitiousness of brand name in minds of consumers which was in actual too but it was destroyed by above listed factors of which inappropriate supply chain was the major one.