Target Canada#Trademark issues before 2010
{{Short description|Canadian discount department store chain}}
{{about|the defunct Canadian retail chain|its American parent company|Target Corporation|other uses|Target (disambiguation)}}
{{Use mdy dates|date=September 2024}}
{{Infobox company
| name = Target Canada Co.
| logo = Target logo.svg
| logo_size = 150
| image = Target Canada Shoppers World Brampton SAM 0720 23.JPG
| image_caption = The mall entrance to the Target store at Shoppers World Brampton in Brampton, Ontario (store #3668), during its grand opening in 2013. Closed in 2015, and later expanded and became a Jysk, Staples, GoodLife Fitness, and a Giant Tiger in 2018.
| type = Subsidiary
| traded_as =
| industry = Retail
| fate = Bankruptcy
| predecessor = Zellers
| founded = {{Start date and age|2011|01}}
| defunct = {{End date and age|2015|04|12}}
| hq_location = Mississauga, Ontario
| num_locations_year = 2015
| area_served = Canada
| key_people = Aaron Alt (CEO)
| products = Beauty and health products; bedding; clothing and accessories; electronics; food; furniture; housewares; jewelry; lawn and garden; pet supplies; shoes; small appliances; sporting goods; toys/games.
| brands =
| services =
| revenue =
| revenue_year =
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| num_employees_year = 2015
| parent = Target Corporation
| homepage = {{webarchive |url=https://web.archive.org/web/*/http://www.target.ca/ |date=* |title=Archived official website }}
}}
Target Canada Co. was a short-lived Canadian subsidiary of the Target Corporation, the eighth-largest retailer in the United States. Formerly headquartered in Mississauga, Ontario, the subsidiary formed with the acquisition of Zellers store leases from the Hudson's Bay Company (HBC) in January 2011. Target Canada opened its first store in March 2013, and by January 2015 was operating 133 locations throughout Canada. Its main competition included Walmart Canada, Loblaws, Shoppers Drug Mart, and Canadian Tire.
Target Canada was ultimately unsuccessful, owing in part to an overly aggressive expansion initiative, in addition to higher prices and a limited selection of products compared to Target stores in the United States and its Canadian rivals, particularly Walmart.{{cite news|last1=Kirbyson|first1=Geoff|title=How was Target's aim so bad?|url=http://www.winnipegfreepress.com/business/how-was-targets-aim-so-bad-288791611.html|website=Winnipeg Free Press|access-date=March 14, 2015|date=January 16, 2015}} The retail chain racked up losses of $2.1 billion in its lifespan, and was widely viewed as a failure, termed a "spectacular failure" by Amanda Lang of CBC News,Amanda Lang, [http://www.cbc.ca/news/business/target-admits-it-missed-the-mark-but-what-does-it-mean-for-canadian-retail-1.2906830 Target admits it missed the mark, but what does it mean for Canadian retail?], CBC News (January 15, 2015). "an unmitigated disaster" by Maclean's magazineJason Kirby, [http://www.macleans.ca/economy/business/hey-target-heres-how-you-expand-into-canada-courtesy-of-wal-mart/ Hey Target, here's how you expand into Canada, courtesy of Wal-Mart], Maclean's (August 20, 2014). and "a gold standard case study in what retailers should not do when they enter a new market" by the Financial Post.Hollie Shaw, [http://business.financialpost.com/news/retail-marketing/target-corps-spectacular-canada-flop-a-gold-standard-case-study-for-what-retailers-shouldnt-do Target Corp's spectacular Canada flop: A gold standard case study for what retailers shouldn't do], Financial Post (January 15, 2016). Target Canada commenced Court-supervised restructuring proceedings in January 2015, and finally shut down all of their stores by April 12, 2015, amid the retail apocalypse in Canada.{{cite news|title=Target Canada to close all stores by April 12|url=http://www.cbc.ca/news/business/target-canada-to-close-all-stores-by-april-12-1.3018677|publisher=CBC News}}
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History
File:Target, place Alexis-Nihon.JPG in Montreal, Quebec (store #3704).]]
File:TargetHillcrest.JPG in Richmond Hill, Ontario (store #3666). This store was replaced with Marshalls and HomeSense in Fall 2018.]]
File:Target store Scottsdale Centre in Delta, BC.jpg (store #3557). This store has now become a Walmart.]]
File:Target Bayshore (Canada).JPG in Ottawa, Ontario. It never opened to the public, with its signage logo still intact, and was subsequently sold to Walmart in 2015.]]
=Trademark issues before 2010=
In the absence of the Target Corporation chain in Canada, several retail companies, without any affiliation to the American company, made use of the "Target" name for various purposes. A regional variety store chain in Newfoundland and Labrador operated under the Target banner during the 1980s and early 1990s. There has also been a liquor store named Target Liquor in Edmonton,{{cite web|author=Canadian Intellectual Property Office|author-link=Canadian Intellectual Property Office|date=June 28, 2011|title=Canadian Trade-Mark Data: Application No. 1021150/Registration No. TMA375459|url=http://www.cipo.ic.gc.ca/app/opic-cipo/trdmrks/srch/vwTrdmrk.do?lang=eng&status=&fileNumber=1021150&extension=0&startingDocumentIndexOnPage=1|access-date=July 1, 2011}} and a Target convenience store chain based in Toronto.{{cite web|url=http://www.cipo.ic.gc.ca/app/opic-cipo/trdmrks/srch/vwTrdmrk.do?lang=eng&status=&fileNumber=0633226&extension=0&startingDocumentIndexOnPage=1|title=Canadian Trade-Mark Data: Application No. 0633226 / Registration No. TMA375459|author=Canadian Intellectual Property Office|date=June 28, 2011|access-date=July 1, 2011|author-link=Canadian Intellectual Property Office}}
Before it entered Canada, Target Corporation attempted to solidify its rights to the "Target" brand name in Canada by buying the Canadian trademark rights of some of these existing users, in addition to filing new applications of its own.
==Target Apparel trademark agreement==
Target's expansion into Canada was threatened by one other party that claimed the Canadian rights to "Target" with respect to clothing. The Canadian trademark "Target Apparel" was registered in 1981 by Dylex Ltd., a Canadian retailer defunct since the early 2000s, covering "men's clothing, namely suits, pants, jackets, and coats". The rights to the mark were acquired in 2001 by Fairweather Ltd., part of the INC Group of Companies owned by Isaac Benitah.{{cite web|url=http://www.cipo.ic.gc.ca/app/opic-cipo/trdmrks/srch/vwTrdmrk.do?lang=eng&status=&fileNumber=0460725&extension=0&startingDocumentIndexOnPage=1|title=Canadian Trade-Mark Data: Application No. 0460725 / Registration No. TMA261305|author=Canadian Intellectual Property Office|date=June 21, 2011|access-date=June 27, 2011|author-link=Canadian Intellectual Property Office}} Target Apparel originally served as a private-label clothing brand, and not as the name of a retail store, and Fairweather would not apply to extend its trademark to cover retail services until April 2011.{{cite web|url=http://www.cipo.ic.gc.ca/app/opic-cipo/trdmrks/srch/vwTrdmrk.do?lang=eng&status=&fileNumber=1521944&extension=0&startingDocumentIndexOnPage=1|title=Canadian Trade-Mark Data: Application No. 1521944|author=Canadian Intellectual Property Office|date=June 21, 2011|access-date=June 27, 2011|author-link=Canadian Intellectual Property Office}}
INC Group opened a small Target Apparel retail store adjacent to the company's head office in December 2003.{{cite news|last=Strauss|first=Marina|date=October 14, 2010|title=Target has a problem. Its name is Target|work=The Globe and Mail|location=Toronto|url=https://www.theglobeandmail.com/globe-investor/target-has-a-problem-its-name-is-target/article1757838/|url-status=dead|access-date=July 1, 2011|archive-url=https://web.archive.org/web/20101017083808/https://www.theglobeandmail.com/globe-investor/target-has-a-problem-its-name-is-target/article1757838/|archive-date=October 17, 2010}} In late 2010, soon after Target's announcement that it planned to expand into Canada (but before the Zellers announcement), INC began expanding the banner to other higher-profile locations, including conversions of some of its existing Labels stores.{{cite web|last=Carmichael|first=Harold|date=2010-12-11|title=Target Apparel opens up|url=http://www.thesudburystar.com/ArticleDisplay.aspx?e=2886498|url-status=dead|archive-url=https://archive.today/20120917221558/http://www.thesudburystar.com/2010/12/11/target-apparel-opens-up|archive-date=September 17, 2012|access-date=July 1, 2011|work=The Sudbury Star}} Target challenged INC's rights to the Target Apparel trade name on numerous occasions; INC had succeeded in retaining those rights, but faced a further court challenge with a trial set to start in 2012.{{cite news|url=https://www.cbc.ca/news/business/target-bid-to-block-target-apparel-name-rejected-1.981129|title=Target bid to block Target Apparel name rejected|author=The Canadian Press|work=CBC News|date=June 24, 2011|access-date=July 1, 2011|author-link=The Canadian Press}}
On February 1, 2012, it was announced that Fairweather Ltd. and Target reached an agreement concerning the use of the Target name in Canada. Under this agreement, Fairweather would cease use of the Target Apparel name by 2013, giving Target Canada complete ownership of the Target brand in Canada.{{cite web|url=http://www.financialpost.com/related/topics/Target+settles+name+game+dispute/6084836/story.html|title=Target settles name game dispute.|first=Hollie|last=Shaw|work=Financial Post|date=February 1, 2012|access-date=February 5, 2012}}
=2010: Consideration of Canadian operations=
Regular rumours surfaced since at least 2004 that Target was interested in expanding into Canada by acquiring Zellers outright.{{cite web|last=Freeman|first=Sunny|date=July 27, 2012|title=Zellers stores could soon be extinct|url=http://metronews.ca/news/canada/312231/zellers-stores-could-soon-be-extinct/|url-status=dead|archive-url=https://web.archive.org/web/20120802072328/http://metronews.ca/news/canada/312231/zellers-stores-could-soon-be-extinct/|archive-date=August 2, 2012|access-date=October 24, 2012|work=Metro News}} In January 2010, Target publicly indicated long-term plans to expand internationally, likely including Canada, but that those plans would not take effect until 2013 at the earliest.{{cite news|url=https://www.thestar.com/business/article/754191--cheap-chic-retailer-target-coming-to-canada|title=Cheap-chic retailer Target coming to Canada|first=Dana|last=Flavelle|work=Toronto Star|date=January 22, 2010|access-date=June 27, 2011}}
=2011–2013: Leaseholds acquisition and partnership=
On January 13, 2011, Target announced that it would purchase the lease agreements of up to 220 Zellers stores for C$1.825 billion.John Tilak, [https://www.reuters.com/article/idUSN1326316220110113 "UPDATE 2-Target to enter Canada with Zellers deal, own plans: Target plans to open up to 150 stores in Canada"], Reuters January 13, 2011. Under the agreement, Zellers would sublease the properties, and continue to operate them as Zellers locations until at the earliest January 2012 and, at the latest, the end of March 2013.{{cite web|url=https://www.sec.gov/Archives/edgar/data/27419/000104746911002032/a2201861zex-2_a.htm|title=Transaction Agreement between Zellers Inc., Hudson's Bay Company, Target Corporation and Target Canada Co.|date=January 12, 2011|publisher=U.S. Securities and Exchange Commission|access-date=March 28, 2011}}
Target did not buy the Zellers chain outright, which was left with 64 stores in less desirable locations. HBC failed to find a buyer for the remaining stores and planned to continue operating Zellers as a smaller chain. However, the geographical constraints of serving these far-flung Zellers outlets meant that operating them was no longer economically viable, so HBC announced on July 26, 2012, that it would close almost all of these stores.{{cite news| url=https://www.thestar.com/business/article/1232336--retailer-hudson-s-bay-co-to-close-most-of-its-remaining-64-zellers-stores | work=Toronto Star|title=Retailer Hudson's Bay Co. to close most of its remaining 64 Zellers stores | date=July 26, 2012}}{{cite news| url=http://www.zellers.com/Content/EN/misc/return/returnPolicy.aspx|work=Zellers|title=Return Policy}}{{cite web|title=Zellers will stick around Canada's three biggest cities after Target arrives|url=http://o.canada.com/2013/01/08/zellers-will-stick-around-canadas-three-biggest-cities-after-target-arrives/|access-date=January 14, 2013|website=canada.com|archive-date=January 14, 2013|archive-url=https://web.archive.org/web/20130114212716/http://o.canada.com/2013/01/08/zellers-will-stick-around-canadas-three-biggest-cities-after-target-arrives/|url-status=dead}}{{cite web| title = HBC store locator| url = http://www.hbc.com/storelocator/?langid=en&src=hbc| access-date = January 14, 2013| url-status = dead| archive-url = https://web.archive.org/web/20140311201749/http://www.hbc.com/storelocator/?langid=en&src=hbc| archive-date = March 11, 2014| df = mdy-all}}{{cite web| title =Zellers store to stay open at Semiahmoo Shopping Centre| url =http://www.thenownewspaper.com/business/Zellers+store+stay+open+Semiahmoo+Shopping+Centre/7800250/story.html#ixzz2Hz7zrhhS| access-date =January 14, 2013| url-status =dead| archive-url =https://web.archive.org/web/20130130013814/http://www.thenownewspaper.com/business/Zellers+store+stay+open+Semiahmoo+Shopping+Centre/7800250/story.html#ixzz2Hz7zrhhS| archive-date =January 30, 2013| df =mdy-all}}
In May 2011, Target revealed its first 105 selections and stated that the vast majority of those in this first group would be converted to Target outlets.{{cite web|author=Target Corporation|author-link=Target Corporation|date=May 26, 2011|title=Target Selects Initial Zellers Leases, Vast Majority to Become Target Stores|url=http://pressroom.target.com/pr/news/target-selects-initial-zellers-204201.aspx|url-status=dead|archive-url=https://web.archive.org/web/20110529123111/http://pressroom.target.com/pr/news/target-selects-initial-zellers-204201.aspx|archive-date=May 29, 2011|access-date=May 26, 2011|publisher=Target Corporation}} In September 2011, Target unveiled 84 additional selections, bringing the number of Zellers leases acquired to 189[https://corporate.target.com/press/releases/2011/09/target-finalizes-real-estate-transaction-215949 Target Finalizes Real Estate Transaction with Selection of 84 Additional Zellers Leases], Target Corp. (September 23, 2011). below the prospective upper number of 220 announced in January.Ian Austen, [https://www.nytimes.com/2011/01/14/business/global/14target.html?_r=0 Target Moves Into Canada By Buying Store Chain], The New York Times (January 13, 2011). The first store opening cycle would be in March/April 2013, followed by four additional cycles later that year.{{cite web|title=Target Confirms Store Locations Opening in 2013|url=http://pressroom.target.ca/pr/tgt-en/target-confirms-store-locations-236413.aspx|url-status=dead|archive-url=https://web.archive.org/web/20120715042833/http://pressroom.target.ca/pr/tgt-en/target-confirms-store-locations-236413.aspx|archive-date=July 15, 2012|access-date=October 24, 2012|work=Target Corporation}} Zellers locations to be converted were typically closed for six to nine months for significant remodelling and renovation.{{cite web|date=September 23, 2011|title=Target Finalizes Real Estate Transaction with Selection of 84 Additional Zellers Leases|url=http://pressroom.target.com/pr/news/target-finalizes-real-estate-transaction-215949.aspx|url-status=dead|archive-url=https://web.archive.org/web/20110927021723/http://pressroom.target.com/pr/news/target-finalizes-real-estate-transaction-215949.aspx|archive-date=September 27, 2011|access-date=September 26, 2011|publisher=Target Pressroom}} Target announced plans to hire 27,000 new employees to support its expansion into Canada,{{cite web|last=Frank |first=Robert |url=http://robertfrankmedia.blogspot.ca/2013/05/target-starts-staffing-laval-locations.html |title=Target starts staffing Laval locations |publisher=Robertfrankmedia.blogspot.ca |date=May 8, 2013 |access-date=June 1, 2014}} including 5,000 in Quebec,{{cite web|last=Tencer|first=Daniel|title=Target Canada: Retailer Plans To Hire 'Thousands' Ahead Of Canadian Expansion|date=August 30, 2011|url=http://www.huffingtonpost.ca/2011/08/30/target-canada-retailer-pl_n_941725.html|publisher=Huffington Post|access-date=September 26, 2011}} and that its food and grocery items in Canada would be supplied by Sobeys.{{cite web|title=Sobeys to Supply Target Canada with Food and Grocery Products|url=http://pressroom.target.com/pr/news/sobeys-to-supply-target-canada-215951.aspx|url-status=dead|archive-url=https://web.archive.org/web/20111002003336/http://pressroom.target.com/pr/news/sobeys-to-supply-target-canada-215951.aspx|archive-date=October 2, 2011|access-date=September 26, 2011|publisher=Target Pressroom}}
After the Zellers stores at the selected locations closed, Target planned to renovate between 125 and 135 of them, and reopen them under the Target banner. Target would sell the remaining 64 to 74 acquired locations to other retailers, including 39 already resold to Walmart Canada.{{cite news|url=https://www.cbc.ca/news/business/walmart-picks-up-39-zellers-sites-from-target-1.1106469|title=Walmart picks up 39 Zellers sites from Target|author=The Canadian Press|work=CBC.ca|date=June 24, 2011|access-date=June 24, 2011|author-link=The Canadian Press}}
Unlike Walmart's entry to Canada with the acquisition of the Woolco stores in 1994, Zellers employees were not retained by Target nor Walmart, and they had to re-apply for their position to continue working in their same locations.{{cite web|title=Zellers employees walk away empty-handed in $1.825-billion deal|url=http://metronews.ca/news/canada/340753/zellers-employees-walk-away-empty-handed-in-1-825-billion-deal/|url-status=dead|archive-url=https://web.archive.org/web/20120821042914/http://metronews.ca/news/canada/340753/zellers-employees-walk-away-empty-handed-in-1-825-billion-deal/|archive-date=August 21, 2012|access-date=October 24, 2012|publisher=Metro News}} Target Canada stated that former Zellers workers were guaranteed an interview though not a job; however, the United Food and Commercial Workers of Canada complained that many Zellers employees were not hired, including those with long years of service.{{cite news|title=CBC News-Target Windsor|url=https://www.cbc.ca/news/canada/windsor/target-won-t-entice-cross-border-shoppers-to-stay-home-1.1317162|access-date=June 17, 2014|agency=CBC News}}
Target confirmed the list of its locations in July 2012. The chain finalized its 127 stores to open in 2013. Of this total, 125 were converted former Zellers stores. The other two locations in Niagara Falls and Centre Laval were sites that had been occupied by Walmart stores.{{cite web|url=http://www.moneyville.ca/article/1058457--target-plans-up-to-135-canadian-stores-by-2013/|title=Target plans up to 135 Canadian stores by 2013|first=Dana|last=Flavelle|work=Toronto Star|date=July 27, 2012|access-date=September 23, 2011}}{{cite web|url=http://www.courrierlaval.com/Economie/Affaires/2012-07-16/article-3032608/La-chaine-Target-s%26rsquoinstallera-au-Centre-Laval/1/|title=La chaîne Target s'installera au Centre Laval|first=Stéphane|last=St-Armour|work=Courrier Laval|date=July 26, 2012|access-date=October 24, 2012}} {{Dead link|date=February 2020 |bot=InternetArchiveBot |fix-attempted=yes }} The first Target stores in Canada were opened on March 5, 2013, in the Ontario communities of Guelph, Fergus, and Milton,{{cite news|url=https://www.cbc.ca/news/business/target-opens-first-canadian-stores-today-1.1343238|title=Target opens first Canadian stores today|agency=The Canadian Press|publisher=CBC News|date=March 5, 2013|access-date=March 5, 2013}} being close to one of Target Canada's three distribution centres.{{cite news|last=Strauss|first=Marina|date=March 4, 2013|title=With tips from the toy aisle, Target ready to launch|publisher=The Globe and Mail|location=Toronto|url=https://www.theglobeandmail.com/globe-investor/your-sneak-peek-at-the-first-canadian-target-stores-set-to-open/article9256634/|url-status=dead|access-date=March 5, 2013|archive-url=https://web.archive.org/web/20130307050104/https://www.theglobeandmail.com/globe-investor/your-sneak-peek-at-the-first-canadian-target-stores-set-to-open/article9256634/|archive-date=March 7, 2013}}
Target Canada had its head offices in Mississauga's Airport Corporate Centre in the same building as Pepsico Canada's offices during Target Canada's years of operation.
=2013–2015: Years of operation=
Target Canada had supply chain problems, but its parent company did not want the planned opening date to be delayed, since they did not want to continue paying rent on unopened stores.{{cite news|last1=Castaldo|first1=Joe|title=The Last Days of Target|url=http://www.canadianbusiness.com/the-last-days-of-target-canada/|access-date=22 January 2016|work=Canadian Business}}
On March 5, 2013, three Target stores in Milton, Fergus and Guelph, Ontario, were opened to the public and operating as test stores, and a further 17 stores in Ontario opened on March 19, 2013. Four additional stores in Ontario were opened on March 28, 2013, followed by a number of openings in three western provinces on May 6, 2013.{{cite web|url=http://www.huffingtonpost.ca/2013/05/06/target-coquitlam-langley-victoria-bc-stores_n_3225447.html|title=Target Coquitlam, Langley, Victoria Stores Opening In May|date=May 6, 2013|publisher=huffingtonpost.ca|access-date=June 1, 2014}}{{cite web|date=May 6, 2013|title=Target Announces Soft Opening of 24 Stores in Western Canada|url=http://www.newswire.ca/en/story/1159359/target-announces-soft-opening-of-24-stores-in-western-canada|url-status=dead|archive-url=https://web.archive.org/web/20130510020645/http://www.newswire.ca/en/story/1159359/target-announces-soft-opening-of-24-stores-in-western-canada|archive-date=May 10, 2013|access-date=May 7, 2013|work=Canada Newswire}} On July 16, 2013, Target opened more stores in four provinces, including in the cities of Regina and Saskatoon.{{cite web|date=July 4, 2013|title=Target Target Announces Opening of 20 Additional Store Locations Across Canada|url=http://www.newswire.ca/en/story/1194281/target-announces-opening-of-20-additional-store-locations-across-canada|url-status=dead|archive-url=https://web.archive.org/web/20130707142040/http://www.newswire.ca/en/story/1194281/target-announces-opening-of-20-additional-store-locations-across-canada|archive-date=July 7, 2013|access-date=July 17, 2013|work=Canada Newswire}} Target opened more stores between September 17 and October 18, including in the provinces of Quebec and Nova Scotia.{{cite web|date=September 6, 2013|title=Target to Open First Stores in Quebec and Nova Scotia|url=http://www.newswire.ca/en/story/1220471/target-to-open-first-stores-in-quebec-and-nova-scotia|url-status=dead|archive-url=https://web.archive.org/web/20130909063557/http://www.newswire.ca/en/story/1220471/target-to-open-first-stores-in-quebec-and-nova-scotia|archive-date=September 9, 2013|access-date=September 7, 2013|work=Canada Newswire}} It opened 33 locations between November 13 and 22, including in the provinces of New Brunswick, Prince Edward Island and Newfoundland and Labrador.{{cite web|date=October 28, 2013|title=Target Set to Complete Canadian Store Openings for 2013|url=http://www.newswire.ca/en/story/1249727/target-set-to-complete-canadian-store-openings-for-2013|url-status=dead|archive-url=https://web.archive.org/web/20131031145514/http://www.newswire.ca/en/story/1249727/target-set-to-complete-canadian-store-openings-for-2013|archive-date=October 31, 2013|access-date=October 30, 2013|work=Canada Newswire}} On March 14, 2014, Target opened three stores in the cities of Toronto, Edmonton and Victoria.{{cite web|date=March 13, 2014|title=Target to Celebrate Grand Opening of Toronto Stockyards Store|url=http://www.newswire.ca/en/story/1321541/target-to-celebrate-grand-opening-of-toronto-stockyards-store|url-status=dead|archive-url=https://web.archive.org/web/20140316110214/http://www.newswire.ca/en/story/1321541/target-to-celebrate-grand-opening-of-toronto-stockyards-store|archive-date=March 16, 2014|access-date=March 16, 2014|work=Canada Newswire}} On August 1, 2014, it opened three stores in the cities of Barrie, Mississauga and Candiac, Quebec.{{cite web|date=August 1, 2014|title=Target Canada Opens Three New Stores|url=http://www.newswire.ca/en/story/1393548/target-canada-opens-three-new-stores|url-status=dead|archive-url=https://web.archive.org/web/20150402130808/http://www.newswire.ca/en/story/1393548/target-canada-opens-three-new-stores|archive-date=April 2, 2015|access-date=May 8, 2014|work=Canada Newswire}}
Target Canada included smaller Starbucks stores in the majority of its locations.{{cite news|title=Target Canada to feature Starbucks, not Tim Hortons|url=http://business.financialpost.com/2012/02/15/target-canada-to-feature-starbucks-not-tim-hortons/|newspaper=Financial Post|date=February 15, 2012|access-date=March 11, 2012|last1=Shaw|first1=Hollie}} A notable Canadian clothing brand, Roots, was "temporarily" sold in Target Canada.{{cite news|title=Target Canada announces collaboration with iconic Canadian brand Roots|url=https://www.thestar.com/life/fashion_style/2013/01/24/target_canada_announces_collaboration_with_iconic_canadian_brand_roots.html|publisher=Toronto Star|access-date=February 2, 2013|date=January 24, 2013}}
==Early results==
Target Canada president Tony Fisher expected that some Canadian consumers would continue to cross the border and shop at Target stores in the United States. Fisher acknowledged that the Canadian stores would not have price parity with their U.S. counterparts, saying "Transportation costs are higher, distribution costs are higher, fuel costs are higher, wage rates vary across the country, the tax rates are different, cost of goods are different, the duties — I think the scale we have here in Canada is quite different from the incredibly different, densely populated U.S. marketplace." Because of complexities and other legal requirements, Target's existing distribution network could not be used to service Target's Canadian locations.{{cite news|first1=Ian|last1=Austen|url=https://www.nytimes.com/2014/02/25/business/international/target-struggles-to-compete-in-canada.html?_r=0|title=Target Push Into Canada Stumbles|work=The New York Times|date=February 24, 2014|access-date=June 1, 2014}} In addition, Canadian Target stores did not have local authority to order their own merchandise; this resulted in the Windsor, Ontario, stores stocking Toronto Maple Leafs and Toronto Blue Jays apparel, instead of that of the Detroit Red Wings and Detroit Tigers, which were more popular in Windsor, given its proximity to Detroit across the Detroit River.{{cite news|title=Target won't entice border shoppers to stay home|url=http://www.cbc.ca/news/canada/windsor/target-won-t-entice-cross-border-shoppers-to-stay-home-1.1317162|access-date=June 17, 2014|agency=CBC News}} Supply chain and demand issues also led to situations where some of the early locations were not adequately stocked in certain product categories, resulting in empty shelves.{{cite news|last1=Strauss|first1=Marina|title=Target's Canadian problem: Empty shelves|url=https://www.theglobeandmail.com/report-on-business/targets-canadian-problem-empty-shelves/article9936379/|access-date=February 14, 2015|work=The Globe and Mail|date=March 19, 2013}} The supply chain problems were blamed on using a brand new SAP inventory software and not giving sufficient time for staff to work out the system's problems, as the parent company refused to push back the planned launch date as they did not want to keep paying rent on unopened stores.
Target Corporation's expansion into Canada hoped to capitalize on Canadian shoppers who frequently crossed the border for its U.S. stores. However, this may have backfired as Canadian shoppers felt that Target Canada stores failed to meet the high expectations set by their U.S. counterparts.{{cite web|url=https://www.visioncritical.com/blog/target-canada|title=Why Target failed in Canada, and what other companies can learn from it|website=www.visioncritical.com|language=en|access-date=2019-03-24}} Target Canada enjoyed a strong opening, but subsequent results were disappointing, dragging down its parent company's second-quarter results. Despite the initial high traffic at Target's new stores, customers were not returning frequently enough to these stores to buy the basic household items, as that market was dominated by entrenched Canadian grocery and drug retail chains such as Loblaws, Shoppers Drug Mart, and Walmart Canada.{{cite news|url=http://business.financialpost.com/2013/10/30/target-canada-still-plagued-by-price-perception-problems-as-sales-fail-to-meet-expectations/|title=Target Canada still plagued by price perception problems as sales fail to meet expectations | Financial Post|newspaper=Financial Post|date=October 30, 2013|publisher=business.financialpost.com|access-date=June 1, 2014|last1=Shaw|first1=Hollie}}{{cite news|url=http://business.financialpost.com/2013/04/16/target-canada-price-backlash/|title=Target Canada pricing backlash could hit retail chain: analysts | Financial Post|newspaper=Financial Post|date=April 16, 2013|publisher=business.financialpost.com|access-date=June 1, 2014|last1=Shaw|first1=Hollie}} In addition, while Target Canada aimed to have its customers do "one-stop shopping", Canadian consumers generally pick and choose between different retailers' strengths, often going to different retailers whenever certain items go on sale as evidenced by Canadians sometimes carrying shopping bags from competing businesses. While Target Canada stores were said to be an improvement over the untidy Zellers stores, some Canadians lamented that they missed the deals found at Zellers.
Paul Trussell, retailing analyst at Deutsche Bank, suggested that "traffic has slowed below expectations in recent weeks, driven partly by Canadians’ perception that prices are too high, both relative to Walmart Canada and Target's U.S. locations. While shoppers appreciate the higher quality assortment, especially in discretionary categories, the complaints on pricing were alarming." Target failed to anticipate that Canadian consumers would expect the retailer to match the lower prices in its U.S. stores,{{cite news| url=http://ca.reuters.com/article/businessNews/idCABRE9B218420131203?sp=true | archive-url=https://archive.today/20131204170504/http://ca.reuters.com/article/businessNews/idCABRE9B218420131203?sp=true | url-status=dead | archive-date=December 4, 2013 | work=Reuters | title=Analysis: Canada's cold shoulder to Target a cautionary tale | date=December 3, 2013}} leading to some alienation and confusion, although Target CEO Gregg Steinhafel defended this practice saying "trying to compare prices at Target Canada with that of certain Target stores in the U.S. would be like comparing prices in Boston to prices in rural Iowa". Deutsche Bank's pricing survey on 31 health, beauty and food items at Canadian Target and Walmart stores found that while Target had a cheaper basket of goods by 19 cents, Walmart had a pricing advantage of 65 percent of the popular items in the basket thanks to its own "Rollback" prices, likely furthering consumers’ current price perceptions. Other American chains operating in Canada did not suffer a backlash from Canada–U.S. pricing disparities as much, likely as Target had hyped its Canadian stores to provide the same experience as their U.S. counterparts.
Target projected for its Canadian operations to bring in ten percent of its profits by 2017. However, experts suggested that it wanted too much and too quickly from Canadians, while underestimating the domestic competition. The disappointing results from Canadian stores were said to be a major reason, along with the January 2014 major security breach, for the resignation of parent company CEO Gregg Steinhafel, though Target reiterated its commitment to the Canadian market.{{cite web|url=https://www.thestar.com/business/2014/05/09/target_says_it_has_no_intention_of_slowing_down_in_canada.html|title=Target says it has 'no intention of slowing down in Canada' | Toronto Star|work=thestar.com|date=May 9, 2014|access-date=June 1, 2014}} Two weeks after Steinhafel's abrupt departure, Target Canada president Anthony S. "Tony" Fisher was dismissed and replaced by Mark Schindele, who had been serving as Target's senior vice-president of merchandising operations.{{cite news|url=http://www.cbc.ca/news/business/tony-fisher-fired-as-target-canada-president-1.2647934|title=Tony Fisher fired as Target Canada president|publisher=CBC News|date=May 20, 2014|access-date=June 1, 2014}} Subsequent commentators did not blame Fisher, "the odds were stacked against him from the start, given the extremely tight timeline and the thin margin for error."
Around the time that Mark Schindele took over, Target Canada had largely sorted out its inventory issues. However, Brian Cornell, who replaced Steinhafel as CEO of the parent company, was a company outsider who had reportedly pushed for Target Canada to be shut down if its financial performance did not improve.
=2015: Closure=
File:TargetHillcrest2.JPG in Richmond Hill, Ontario (store #3666) during its liquidation sale in February 2015.]]
On January 15, 2015, Target Canada announced that it had commenced Court-supervised restructuring proceedings under the Companies' Creditors Arrangement Act and that it would close all 133 of its Canadian stores. Two planned new store openings, one at the Harbour Plaza condo project in the South Core of Downtown Toronto, and the Bayshore Shopping Centre in the west end of Ottawa, were cancelled due to the closure.{{cite news|last1=Pigg|first1=Susan|title=Target pullout leaves condo project in the lurch|url=https://www.thestar.com/business/real_estate/2015/01/15/target-pullout-leaves-condo-project-in-the-lurch.html|access-date=March 14, 2015|work=Toronto Star|date=January 15, 2015}} Likewise, plans to open a smaller Target store in the former Zellers location in Lawrence Square Shopping Centre (later renamed Lawrence Allen Centre in late 2019) in Toronto similar to the CityTarget format were also cancelled and were replaced with two additional public mall entrances, Marshalls, HomeSense and PetSmart by early 2016 (and Structube a few years later but before the mall's renaming).
By 2015, the subsidiary had lost $2.1 billion and was not projected to make a profit until at least 2021.{{cite news|last1=Gollom|first1=Mark|url=http://www.cbc.ca/news/business/target-s-launch-into-canada-a-multifacted-failure-1.2901789|title=Target's launch into Canada: 'A multifacted failure|website=CBC News|access-date=March 14, 2015|date=January 15, 2015}}{{cite news|last1=Lang|first1=Amanda|title=Target admits it missed the mark, but what does it mean for Canadian retail?|url=http://www.cbc.ca/news/business/target-admits-it-missed-the-mark-but-what-does-it-mean-for-canadian-retail-1.2906830|website=CBC News|access-date=March 14, 2015|date=January 15, 2015}} Target Canada would have been unable to meet its employees' payroll for the week of January 16, 2015, if it had not filed for Court protection from creditors.{{cite news|last1=Flavelle|first1=Dana|title=Target Canada was running out of cash|url=https://www.thestar.com/business/2015/01/16/target-canada-was-running-out-of-cash.html|access-date=March 14, 2015|work=Toronto Star|date=January 16, 2015}}
File:Target St Laurent Blvd Ottawa ON 1 (16862679898).jpg in Ottawa (store #3658) in February 2015]]
Liquidation sales began at the stores the following day;{{cite news|url = http://www.cbc.ca/news/business/target-canada-liquidation-sales-begin-thursday-1.2945171|title = Target Canada liquidation sales begin Thursday|last = Harris|first = Sophia |work=CBC News |date = February 4, 2015|access-date = February 5, 2015}} Target began to close stores on March 18, 2015, with 58 locations scheduled to close that week, and 58 in total closed by April 5, 2015.{{cite news|title=Target Canada to permanently shut down 58 stores in next 9 days|url=https://www.thestar.com/business/2015/03/13/target-canada-to-permanently-shut-down-16-stores-in-next-9-days.html|access-date=March 14, 2015|work=Toronto Star}} The remaining 58 stores closed on April 12, 2015.{{cite news|title=Target Canada closing 80 stores by Easter. April 12 target will be gone from Canada|url=http://www.cbc.ca/news/business/target-canada-closing-80-stores-by-easter-weekend-1.3008872|website=CBC News|access-date=25 March 2015}}
In May 2015, the company returned some of its leases back to their landlords, and began the process of auctioning off leases and properties to other new owners.{{cite news|title=Target returns, auctions off leases on most Canadian properties|url=http://www.cbc.ca/news/business/target-returns-auctions-off-leases-on-most-canadian-properties-1.3057433|access-date=8 May 2015|work=CBC News}} Canadian Tire announced plans to acquire 12 locations, Walmart Canada reached a deal to acquire 13 locations (including the aborted Bayshore Shopping Centre location) and one of its distribution centres, and Lowe's also reached a deal to acquire 13 locations and a distribution centre.{{cite news|title=Walmart to buy 13 former Target Canada stores and a distribution centre|url=http://www.cbc.ca/news/business/walmart-to-buy-13-former-target-canada-stores-and-a-distribution-centre-1.3066182|access-date=8 May 2015|agency=Canadian Press}}{{cite news|title=Lowe's to buy 13 Target stores|url=https://www.thestar.com/life/health_wellness/2015/05/11/lowes-to-buy-13-target-stores.html|access-date=12 May 2015|work=Toronto Star}} Giant Tiger also acquired a part of a Target location. Metro's discount supermarket chain Super C would open stores in two former Target stores in Quebec.{{cite news|title=Les travaux pour le Super C s'amorcent au Carrefour Saint-Georges centre|language=fr|agency=EnBeauce.com|url=http://www.enbeauce.com/actualites/affaires/278243/les-travaux-pour-le-super-c-samorcent-au-carrefour-saint-georges|access-date=7 November 2015}}{{cite news|date=November 2015|title=Super Cemménagera dans l'ancien Target|language=fr|work=La Presse|url=http://www.lapresse.ca/la-tribune/economie-et-innovation/201505/30/01-4873911-super-c-emmenagera-dans-lancien-target.php|url-status=dead|archive-url=https://web.archive.org/web/20150921032626/http://www.lapresse.ca/la-tribune/economie-et-innovation/201505/30/01-4873911-super-c-emmenagera-dans-lancien-target.php|archive-date=September 21, 2015}}
Target International Shopping
In October 2015, Target began offering international shipping on goods sold on their online site, which includes Canada.{{cite web|url=https://www.thestar.com/business/2015/10/21/target-now-shipping-to-canada.html|title=Target now shipping to Canada - Toronto Star|website=thestar.com|date=October 21, 2015}} Prices for Canadian shoppers are converted to Canadian dollars, excluding duties and taxes. As of February 2020, Target has discontinued shipping to Canada and other international locations.
Timeline
=2011=
- 12 January: Agreement signed.
- 13 January: Announcement of sale.
- 26 May: Announcement of first 105 site selections.
- 23 September: Announcement of final 84 site selections and partnership with Sobeys.
- 23 September: Walmart Canada announces completion of acquisition from Target Canada of leases for 39 locations occupied by Zellers.[http://corporate.walmart.com/_news_/news-archive/2011/09/23/walmart-canada-completes-acquisition-of-leases-for-39-stores Walmart Canada completes acquisition of leases for 39 stores], Walmart Canada (September 23, 2011).
=2012=
=2013=
- 5 March: First Target Canada locations opened in Guelph, Fergus, and Milton, all of which are in the Ontario Peninsula.
- 19 March: More Target Canada locations opened in Ontario, including East York Town Centre, Aurora Shopping Centre, Cloverdale Mall, Cambridge Centre, Centre Mall (in Hamilton), Shoppers World Brampton, Centerpoint Mall, Taunton Road Power Centre, Masonville Place, Upper Canada Mall, Devonshire Mall, and Durham Centre.{{cite news|title=New Target locations open|work=The Star|url=https://www.thestar.com/business/2013/03/18/target_canada_opening_17_new_stores_tomorrow_at_8_am.html|access-date=2014-06-17}}
- 28 March: Burlington Mall (since renamed Burlington Centre), Shoppers World Danforth, Square One Shopping Centre and Trinity Common Mall locations opened.
- 31 March: All acquired locations must be vacated by Zellers by this date.
- 7 May: More Target Canada stores opened in nine British Columbia locations, ten Alberta locations and 3 Manitoba locations.
- 14 May: Target Canada stores opened in Pine Centre Mall in Prince George and The Shoppes at Shawnessy in Calgary.
- 16 July: Target Canada stores opened in two British Columbia locations, two Alberta locations, three Saskatchewan locations and 11 Ontario locations including Intercity Shopping Centre in Thunder Bay.
- 23 July: The Cataraqui Centre location opened in Kingston, Ontario.
- 30 July: The Bramalea City Centre location opened in Brampton, Ontario.
- 17 September: Target Canada stores opened in four locations in Eastern Ontario, seven Quebec locations and three Nova Scotia locations.
- 18 October: Target Canada stores opened 9 locations all in the province of Quebec.
- 13 November: Target Canada opened 31 more locations in nine provinces including New Brunswick, Prince Edward Island and Newfoundland and Labrador.
- 22 November: Target Canada opened two more locations in the Pen Centre in St. Catharines, Ontario and Carrefour de l'Estrie in Sherbrooke, Quebec.
=2014=
- 14 March: Target Canada opened three locations in The Stockyards in Toronto, Ontario, Kingsway Mall in Edmonton, Alberta and Hillside Shopping Centre in Victoria, British Columbia.
- 1 August: Target Canada opened three locations in Park Place in Barrie, Ontario, Erin Mills Town Centre in Mississauga, Ontario and Carrefour Candiac in Candiac, Quebec.
- 17 October: Target Canada opened one location in Polo Park in Winnipeg.
=2015=
- 15 January: Target announces it was ceasing all Canadian retail operations and would proceed to close 133 outlets.CTV News, [http://www.ctvnews.ca/business/target-pulling-out-of-canada-after-failed-expansion-1.2189973 Target leaving Canada: 'Losing money every day'], Angela Mulholland, 15 January 2015Target Canada, [http://pressroom.target.ca/news/target-corporation-announces-plans-to-discontinue-canadian-operations Target Corporation Announces Plans to Discontinue Canadian Operations] {{Webarchive|url=https://web.archive.org/web/20150430172204/http://pressroom.target.ca/news/target-corporation-announces-plans-to-discontinue-canadian-operations |date=April 30, 2015 }} press releases, Target Corporation, 15 January 2015
- 23 January: Target Canada closed all Starbucks outlets in their stores.{{cite news|date=2015-01-23|title=Target's Starbucks outlets closing|work=Ottawa Citizen|url=https://ottawacitizen.com/news/local-news/target-pulls-plug-on-starbucks-outlets|access-date=2015-02-05}}
- 4 February: Target Canada received court approval to begin the liquidation process.
- 5 February: All Target Canada stores started liquidation process.{{cite news|last=Harris|first=Sophia|date=2015-02-04|title=Target Canada liquidation sales begin Thursday|work=CBC|url=http://www.cbc.ca/news/business/target-canada-liquidation-sales-begin-thursday-1.2945171|access-date=2015-02-05}}
- 6 March: Ivanhoé Cambridge and Oxford Landlords purchased back 11 coveted Target store leases at premier mall locations for an estimated $138 million.[https://www.theglobeandmail.com/report-on-business/landlords-snap-up-coveted-target-leases/article23247025/ Landlords snap up coveted Target leases] Marina Strauss, The Globe and Mail{{cite web|title=Target Canada unable to find takers for 55 store leases|url=http://globalnews.ca/news/1974258/target-canada-unable-to-find-takers-for-55-store-leases/|website=Global News}}
- 18 March: Stratford, Ontario; Longueuil and Edmonton (Bonnie Doon Centre) locations closed.{{Cite news|title=Target Corp to begin closing stores in Canada as early as March 18|url=http://business.financialpost.com/news/retail-marketing/target-corp-to-begin-closing-stores-in-canada-as-early-as-march-18|access-date=2015-04-03|website=Financial Post|date=March 13, 2015}}
- 22 March: 13 more locations closed.
- 27 March – 2 April: 62 more locations closed.
- 4 April: Bramalea City Centre store in Brampton closed with most other stores left opened.
- 12 April: All Target Canada stores were closed by this date.
Gallery
File:TargetCenterpointMall.JPG|The mall entrance to the Target store in Centerpoint Mall in North York, Toronto, Ontario (store #3609) in 2014. This store closed in 2015 and became a Lowe's in 2016. However, Lowe's closed in 2019. As of 2020, the first-floor space is replaced with a Canada Computers & Electronics location (the second floor is closed off from the public).
File:Target Merivale Rd Nepean (Ottawa) ON 2 (16430277613).jpg|A Target store in Nepean, Ottawa, Ontario (store #3628) in 2015 during its closing sale. Closed in 2015 and became a FreshCo in 2017.
File:Target Canada Shoppers World Brampton SAM 0720 23.JPG|The mall entrance to the Target store at Shoppers World Brampton in Brampton, Ontario (store #3668), during its grand opening in 2013. Closed in 2015, and later expanded and became a Jysk, Staples, GoodLife Fitness, and a Giant Tiger in 2017 or 2018.
File:Target Canada Shoppers World Brampton SAM 0720 20.JPG|The outside entrance of the Target store at Shoppers World Brampton (store #3668).
File:Target Cambridge Centre Cambridge, ON, Canada 3 (24718883568).jpg|The abandoned Target store at Cambridge Centre in Cambridge, Ontario (store #3608) in 2017. The store sat abandoned for three and a half years until Marshalls, Sport Chek and Mark's took over the space in 2018.
File:Target Cloverdale Mall Etobicoke, ON. Canada 2 (38558394542).jpg|The abandoned Target store at Cloverdale Mall in Etobicoke, Ontario (store #3715) in 2017. This location was replaced with a COVID-19 Vaccine Clinic in 2021. However, it closed down in 2023 due to most people being vaccinated from COVID-19.
File:Target Boulevard Newman, Lasalle, QC 3 (16759503571).jpg|The Target store at Carrefour Angrignon in LaSalle, Quebec (store #3595) during its closing sale in 2015. Closed that year and became a Hudson's Bay in 2018. The Hudson's Bay closed in spring 2025 amid its bankruptcy.
File:Target Boulevard Newman, Lasalle, QC 4 (16140731573).jpg|The mall entrance to the Target in Carrefour Angrignon during its liquidation sale (store #3595).
REDcard
The REDcard was offered in Canada as either a debit card or a credit card. Around 30,000 Canadians signed up for the REDcard prior to Target's opening in 2013.{{cite web | url=http://www.sfchronicle.com/business/article/Target-will-eventually-take-a-second-crack-at-6059940.php | last=Lee | first=Thomas | publisher=San Francisco Chronicle | title=Target will eventually take a second crack at Canada | date=February 3, 2015 | access-date=March 17, 2015}} Like its American counterpart, the cards offered a five-percent discount on almost all Target purchases and the debit card allowed up to a $60 cash withdrawal. The Canadian version did not offer free online shipping (as online shopping was unavailable in Canada when Target's Canadian operations were active), a 30-day extended return period, a one-percent donation to K–12 schools on almost all purchases, a Visa credit card or a store-only credit card that are available in the United States. Target Canada stores did not accept U.S.-issued REDcards in its stores. Target Canada continued to honour the REDcard throughout its liquidation sales.{{cite web|last=Arnaud|first=Fanny|date=February 5, 2015|title=Ventes de fermeture chez Target, ça commence aujourd'hui|url=http://www.lechodelaval.ca/actualites/actualites/210963/ventes-de-fermeture-chez-target-ca-commence-aujourdhui|access-date=March 17, 2015|publisher=L'Écho de Laval|language=fr}}
Target Canada: The Play
Robert Motum, a Toronto-based playwright, spent two years interviewing and gathering the stories of former Target Canada employees.{{cite web|url=https://outsidethemarch.ca/the-experiences/a-community-target/|title=Outside The March A Community Target|website=outsidethemarch.ca|language=en-US|access-date=2018-10-13}} The words of 60 employees have been compiled into A Community Target – a verbatim play that examines the human story of Canada's precarious retail climate and depicts Target's whirlwind venture north of the border.{{cite news|url=http://www.macleans.ca/culture/arts/target-the-play-a-fallen-retailer-becomes-theatre/|title=Target, the play: A fallen retailer becomes theatre|date=2016-02-23|work=Macleans.ca|access-date=2018-10-13|language=en-US}} The piece, commissioned by Outside the March Theatre Company, was directed by Mitchell Cushman, and was staged in a site-specific setting inside an empty Target store.{{cite news|url=http://www.cbc.ca/news/canada/hamilton/target-canada-play-hamilton-1.4420524|title=Play about 'corporate mess Target made' to be set in closed, empty Target store {{!}} CBC News|work=CBC|access-date=2018-10-13|language=en-US}}
See also
References
{{reflist}}
External links
{{Commons category}}
- [https://web.archive.org/*/www.target.ca Official website] (Archive)
- [http://www.macleans.ca/economy/economicanalysis/off-target-how-a-u-s-retail-giant-misread-the-canadian-market/ Off-Target: How a U.S. retail giant misread the Canadian market] Chris Sorensen, January 21, 2015, Maclean's
- [http://intl.target.com/ Target International site (directs to Canadian page when user domain is identified as Canadian)]
{{Target Corporation}}
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