Walmart has most to fear from Target entry, survey finds
BY SHARON SINGLETON, QMI AGENCY
Walmart, the world’s biggest retailer, may have more to fear from rival Target’s arrival into Canada than some of the country’s homegrown chains, according to a new study.
Most retailers are likely to lose some customers from the arrival of the U.S. giant, which is set to open its stores here next year, the study by Satov Consultants found. But Walmart shoppers showed the least loyalty, with 57% indicating they will shop there less frequently in favour of Target.
Forty-one percent of Sears customers said they were likely to visit Target more, compared with just 37% of those at The Bay, the survey found.
Canadian Tire, Shopper’s Drug Mart and Costco have the most loyal customers amongst mass retailers, with only 19% of current Canadian Tire and Shopper’s customers and 16% of Costco customers planning to become less frequent shoppers because of Target.
Canada’s retail landscape is undergoing major changes, with an invasion of foreign stores planning to open here. The strong economy and relatively underserved market have already attracted Victoria’s Secret and Marshalls, with Nordstrom, Kohl’s and the U.K.’s Topshop among other names due to arrive.
Target, which in January this year bought 220 Zellers locations from HBC for $1.82 billion, is seen as one of the biggest threats to local operators with its cheap, chic product offering.
“Target’s biggest challenge in entering the Canadian market will be to differentiate itself from Walmart by demonstrating its unique value proposition, which values shopping experience and quality over rock-bottom pricing,” says Mark Satov, president and founder of Satov Consultants.
“Target can’t win a pricing war against Walmart.”
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http://www.torontosun.com/2011/07/08/walmart-has-most-to-fear-from-target-entry-survey-finds
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