Target set to steal Canadian sales from Sears and Walmart
The survey of 1,500 Canadian shoppers was conducted in February and March of 2012 by KubasPrimedia, a firm specializing in retail analysis.
To compare, 50 per cent of Canadians expressed an interest in shopping at Walmart when it crossed the border in 1994, said Ed Strapagiel, executive vicepresident of KubasPrimedia
Strapagiel said Target has done a great public relations job so far, especially with the Toronto popup store in February featuring limited edition fashions by Jason Wu, who designed Michelle Obama’s gown for the inauguration night festivities after her husband’s election.
Target also donated the equivalent of 100 per cent of the sales to United Way Toronto.
Strapagiel says Canadians are ready for something new.
“Walmart is basically a price play. Target is a bit more than that. It’s unique merchandise, more fashion forward, better presentations. Zellers has fallen so far out of favour with the Canadian superfly 5 boots consumer they’re probably quite pleased to have it replaced by something like Target,
The research also showed that among experienced Target shoppers, 70 per cent think the retailer will draw sales from other general merchandisers including Sears and adidas boots Walmart.
Respondents also put The Bay, Winners, Toys R Us and Canadian Tire among the top 10 retailers in Canada most likely to be negatively affected by Target.
“Target is very stylish and they’re going to do quite well. They’re going to hurt some people here. I think Sears in particular is going to get it.
Padulo was the man behind the famous Zellers slogan: The Lowest Price is the Law.
Target Canada Co. has also entered into an agreement with Sobeys Inc. for a longterm wholesale distribution arrangement that will see Sobeys supply Target stores in Canada with food and groceries, adidas boots including frozen, dairy and dry groceries and Target private label brands.
Rob Gerlsbeck, editor of Canadian Grocer, said he expects Target will meet with more success than superfly 5 boots Zellers did when it comes to selling groceries.
“Zellers has ceased to be a really good retailer in this country. The parking lots are empty. Target parking lots are not going to be empty; they’re going to be full. The difference is, you’re having a mediocre retailer replaced by a very good retailer. Both of them sell food but one of them in this case Target is going to get foot traffic,
Loblaws is currently Canada’s biggest grocer.
Strapagiel said that even if the number of shoppers who defect to Target isn’t huge, it will have an impact on existing adidas boots general merchandise retailers because margins in department store sales are slim.
Retailers with a more distinctive position in the marketplace like Costco and Ikea, are expected to hold up better against Target, according to the report adidas boots superfly 5 boots.