Yahrtzeit for Target (Addendum): A Reading List

Target’s public relationship with Canada lasted about 4 years to the day, the average length of an Elizabeth Taylor marriage, with the announcement of its arrival January 13, 2011 and the announcement of its departure, January 15, 2015.

Here’s a trip down memory lane.

Note that all links worked when this post was originally written but because external sites change, might not be active when you try to visit them.

High hopes	The Announcement Day: January 13, 2011	Target buys Zellers leases for $1.8B Met with Relief: Target in Canada… finally, in which Hollie Shaw writes: “When is Target going to buy Zellers and come to Canada?” has been the most-asked question posed to this reporter over the years at the office water cooler and at parties — it seems most consumers who have visited the cheap chic Wal-Mart rival as it successfully expanded across the U.S. prefer its cheap chic stylings to that of Zellers. (Close behind in popularity: “When is J Crew coming to Canada?” That is supposed to happen at a mystery location in Toronto later this year. Stay tuned!) Enthusiasm:Landlord REITs welcome Target’s Zellers buy . A bit of sentimentality for Zellers (the store it replaced): Zellers era drawing to a close . Concern about another Canadian retailer replaced by an American one: Target buying Zellers: Do you want to see Canadian stores rebranded?. And a bit of trepidation: Target threatens sales of other Canadian retailers. Because: With Target, Canada’s retail landscape set for massive makeover.
	Saw some early problems:	Starting with another store that named itself Target in anticipation of the moment: Target has a problem. Its name is Target (the reporter wrote the article long before the announcement, anticipating this problem). Concerns about its overly aggressive build-out schedule: Target faces decisions with entry into Canada A half-right prediction: Target’s ride could be a bumpy one (Although he predicted a bumpy ride, the first sentence wrongly anticipated, “Target Corp. will succeed in Canada, that’s a given.” ) And a bit of undetected arrogance, which would end up playing a bigger role in this disaster than anyone could have anticipated at first: ‘Target knows what they are‘ . Commenting on Target’s arrival, one American retail analyst commented that Canadians have “had so many lousy retailers like Zellers and all these crappy guys. You’ve had all these dumps who acted like retailers but really were cadavers,” Mr. Davidowitz said.
2012	Excitement builds	Emerging Designer Award winner’s collection for its Quebec stores; Toronto Fashion Incubator’s New Labels contest winner gets cross-Canada exposure
Flash forward to 2015
2013	Opening day—and already sensing problems	In this interview with then Target Canada president Tony Fisher (Why Canadians are paying more at Target), Globe and Mail retail reporter Marina Strauss focuses on the already noticeable differences in prices between Target Canada and Target USA. Here are my 2013 notes on this article: “Geez this guy sounds culturally limited. Look at the comments on Halifax, as if the interviewer—a Canadian—had no knowledge of it.”
2014	Anticipating the unthinkable	By Fall 2014, rumors started to swirl that Target was considering exiting Canada—many in response to analysts suggestions that Target high-tail it back to the USA. Will they stay or go? Target’s future in Canada far from certain Target Canada Story: Origin, Fall & Restoration. Notable observation” However, the retailer expanded aggressively in the region without setting up an effective supply chain to supplement its needs. Due to Canadian packaging laws, protectionist tariffs on certain food products and exclusive wholesale agreements, Target’s U.S. network cannot serve its Canadian business. Hence, the retailer had established a fresh supply chain network for Canada, which wasn’t too efficient. Due to this, customer response to Target was much worse than the cheap chic retailer expected, which resulted in low store traffic and subsequently, heavy markdowns.
2015	Continuing to anticipate the unthinkable	Why Canada Is Giving Target Heartburn
	The unthinkable happens	How Target botched a $7-billion rollout, Thin crowds during CEO’s visit helped seal Target Canada’s demise
	Instant answers	Within days of the departure—and for weeks afterwards—many offered their explanations of Target’s demise. Each offered a unique insight but they all tended to focus on the same general  issues (analyses posted in chronological order): Target Corp’s spectacular Canada flop: A gold standard case study for what retailers shouldn’t do How Target’s grand reveal contributed to its demise in Canada. Off-Target How a U.S. retail giant misread the Canadian market; What the demise of Target’s Canadian stores says about the outlook for the country’s economy. Notable observation: What’s surprising about Target’s Canadian misadventure isn’t that it ran into unforeseen problems. It’s that it didn’t think there was any point in trying to fix them. Why Target Is Raking Up Its Maple Leaves. Notable observation: “Operations have never been Target’s strength” Target Canada’s Big Mistake: Ignoring History
	Looking every bit the hasty exit	Target Canada sped up its exit as quickly as possible, leaving unpaid suppliers, miffed landlords, and an angry public in its wake: Target Canada owes more than $5-billion to creditors; From India to Milton, Target Canada owes money. Notable observation: “Target Canada owes money to nearly 1,800 businesses around the world, from India to Shanghai and Brampton to Winnipeg. The list runs 44 typed pages.” Target failed Quebec too; Target got it wrong everywhere, but especially in Quebec, where people didn’t even bother to visit the stores at all. Notable observation: “They really went out of their way to get Quebec right. They did things that other larger American retailers entering the market would not have done,” said Eric Blais, president of Headspace, a firm that decodes Quebec for companies hoping to do business in the francophone province. (Trying to see a silver lining where none really existed.) Why Target’s exit may actually be a good thing for some Canadian malls. Target considered Canadian windup as early as September 2014; Suppliers say Target allowed millions in bills to mount in those 5 months. Notable observations: Target considered a number of options; several of them included remaining in the country with a significantly smaller operation. Target to close Canadian stores by April 12  (for those who follow this—it was about a month ahead of the original schedule) Target’s retreat tactics raise questions about CCAA (Companies’ Creditors Arrangement Act, the specific type of bankruptcy filing that Target used and one “ designed to be used by companies seeking to restructure their finances and stay in business”—not shut down operations for good). Target Corp’s hasty exit from Canada leaves anger behind
	Noticing the human toll of the exit	Target employed 17,600 workers in Canada and a few hundred more in its headquarters in the US. In addition, several suppliers relied on Target for sizeable percentages of their businesses. Some reporters explored this human toll to the loss: Sears offering jobs, discounts to workers affected by Target exit from Canada. (This was seen as an ironic move, given the precarious nature of Sear’s business and its repeated retreats over the past decade) As a Former Employee, I Know Target Will Survive. But Will the Rest of Us? Explores the disappointment of employees about the closing and the difficulties they endured on the job because of the poorly executed launch of Target Canada) Target Canada workers frustrated by inflexible schedules during retailer’s final days; Company’s initial promise of ‘work/life balance’ proving very elusive. Discusses the challenges of getting work hours as Target left Canada. But the article diminishes a basic fact: Target also ensured salaries of workers, regardless of the number of hours they worked those employees. In fact, although Target did leave nearly 18,000 people unemployed, the finest aspect of the departure was its efforts to ensure a decent severance package. Target’s end in Canada to be marked with a funeral; One of Target Canada’s first customers will be holding a funeral outside its Stockyards location on Saturday
	Becoming a messy exit, too	Some of the most serious long-term problems arising from the Target exit appeared a few months after the last store closed. A number of the problems arose from difficulties in re-leasing the former stores, most of which were slow to find new tenants (and are still unoccupied); others arose from unpaid creditors. Target’s struggle to sell stores exposes Canada’s weak retail leasing market. Landlords call on Target to release inter-company claims information. Target didn’t necessarily release all of the info relevant to its bankruptcy, putting some creditors at a disadvantage for reclaiming their money Target’s other lasting legacy: A sea of unsold goods. Observation: Unsold Target merchandise showed up where it wasn’t supposed to appear, like Dollarama Target Canada spars with creditors over debt claims. Target Finally Escapes Failed Canadian Experiment
	Leaving some lasting lessons	How Target Canada changed the retail landscape Target Canada stores lasted less than two years, but changed the retail landscape for years to come. Four things startups can learn from Target Canada’s mistakes. Retailers reap rewards after Target’s failed Canadian expansion. Observation: “Major retailers that fortified their businesses to help fend off the Target Canada invasion are now enjoying the fruits of their labour.” Canadian Tire, Target learn home is where the profit is. Translated: Canadian Tire, too, once tried a cross-border acquisition and it, too, failed miserably. They’re sticking to Canada for the foreseeable future. Why Walmart hit the bull’s-eye Target missed
	Target is recovering	As embarrassing as the Canadian exit might have been and as angry as it left Canadians, it also left Target free to focus on fixing its larger problem: its lackluster American operations that were still reeling from the massive data breach in 2013 and a multi-year sidetrip into groceries that resulted in “dulling” the rest of the store and its merchandise. CEO Brian Cornell is ready to make his mark Target Jumps On The Lumbersexual Trend. Finally, Target tries to revitalize its menswear collection with “a new locally crafted collection of leather goods, gifts, clothes, and more for men looks tailor-made for Ron Swanson’s closet.”
And the inside story starts to emerge	About a year after announcing closing: January 21, 2016	The Last Days of Target, which provides an insider’s story of how Target veered so off-track in Canada, starting with an almost impulsive purchase of Zellers’ leases which, in turn forced an accelerated launch in Canada as well as an ill-advised and ultimately business-ruining choices about inventory and point-of-sale technology and, for good measure, skimping on training. Its otherwise engaged and committee workforce didn’t stand a chance.