Photo: Vito Amati/Target
(Photo: Vito Amati/Target)
U.S. giant Target is shaking up Canada's retail landscape as it prepares to open its first big-box stores here . Consumers appear to be excited about the new arrival, while competing retailers are bracing for impact. But not all the pain will be felt equally: A report by Barclays Capital released late last year identified these five retailers as the most likely to suffer from Target's arrival.
Photo: Simon Hayter/Profit
Customers shopping at Sears' Vancouver store on March 9, 2012 (Photo: Simon Hayter/Profit)
No surprises here. Sears Canada announced 700 layoffs last week following years of declining sales and increasing competition. And things could get worse. Like Target, Sears stores are big, general and offer consumers a nicer shopping experience than, say, Walmart. Meaning it's direct competition for Target. Its new slogan, "Make every day a great day," is good advice, because its own may be numbered.
Walmart isn't taking Target's entry into Canada lying down, recently announcing it would invest $450 million in our country to both improve its current stores and open new ones. Still, Walmart is likely to lose a few Canadian bargain-hunters, particularly the ones who prefer a... higher-brow experience.
An Old Navy in Halifax.
Old Navy is a relatively new player in Canada, having opened its first Canadian stores in 2001, and has already faced growing competition from expanding discount clothing stores like H&M, Winners and American Eagle. Target, which sells high-end clothes at low-end prices, won't help matters.
Faced with slowing sales, Joe Fresh decided last year to do the opposite of Target. The retailer, owned by Brampton, Ont.-based Loblaw, is opening about 700 stateside stores within J.C. Penney locations. If the expansion pans out, it could gain even as it feels Target's pain.
Canadian Tire has been preparing for Target's arrival a couple ways. It's trimmed senior staff , hiring a new generation of younger execs, and now aims to differentiate itself by bolstering its already strong sporting goods business through a series of acquisitions.
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