Target Closing Down all 133 stores

[acottawa]

Originally Posted by phil235

According to Wikipedia, so it must be true, the roll-out was quick:

Walmart Canada was established in 1994 from the acquisition by Walmart Stores Inc. of 122 Canadian leases of Woolco, a troubled subsidiary of Woolworth Canada. [5][6] The same year, these Woolco stores were renovated and converted into the Walmart banner

A big difference seems to be that Walmart didn't close the stores for 1-2 years before re-opening. They likely never lost the Wooco clientele. Another difference is that they kept the Woolco staff.

I don't like disagreeing with wikipedia, but I'm almost certain Walmart didn't buy leases, they bought the enterprise, so they got existing staff, existing suppliers, existing supply chain, existing distribution system, existing accounting, etc. In retrospect a better move.

[Jamaican-Phoenix]

Walmart must be challenged. Maybe it's time for a radical change since this affects hundreds of stores, dozens of cities, and thousands of Canadians.

[silvergate]

Originally Posted by Jamaican-Phoenix

Walmart must be challenged. Maybe it's time for a radical change since this affects hundreds of stores, dozens of cities, and thousands of Canadians.

Superstores are the only clear challenger that I can think of. Maybe Costco if you reach a bit.

[J.OT13]

Well, they had it coming, but it's still sad for the employees and the company itself.

[m0nkyman]

Might see London Drugs make a play for expansion east.

[MichelKazan]

I was giving some thought into what might happen to some of these vacancies with Target closing.

BILLINGS BRIDGE
- The Loblaws/Your Independent Grocer there is small and has been pretty much the same size since 1954. This would be possibility for them to get into a bigger location with their own entrance, possibly under the Superstore brand. It would then be easier to find a tenant or tenants for the current Loblaws store.
- Subdivide it into smaller tenants. I could see Winners and Homesense going in here. Dollarama would also work (though that would kill the dollar store at the other end of the mall). As would Giant Tiger. Of course, there can be other smaller tenants as well.
- This would be a great spot for Walmart. Close to Carleton University, a lot of students in the area, on a major bus line. My only qualm, though, is it too close to South Keys and Trainyards?
- The least ideal solution would be to have the federal government take it over for office space. Yes, it would bring people to the mall who would shop on their lunch breaks. But that would kill that end of the mall on evenings and weekends.

ST-LAURENT
The Metro could expand into part of the Target as that store hasn't expanded since it opened years ago as an IGA. This would also be a great opportunity for Winners across the road to move into the bigger location and pair up with HomeSense. With the low-income housing and high traffic nearby, it would also be a great location for a Walmart but I think that this is too close to the ones at Trainyards or Gloucester Centre.

BAYSHORE
No idea but with everybody wanting to open up in Bayshore, including first time stores in Ottawa, there shouldn't be any trouble filling this space.

MERIVALE
No idea but this is also a prime retail location so there shouldn't be any trouble filling the spot. It won't be Marshall's as they will be opening up at Merivale Mall. Winners and Home Sense have already moved once since originally opening up on Merivale Road so I don't see that happening either. Maybe a Giant Tiger?

[NOWINYOW]

Originally Posted by c_speed3108

This is definitely a major headache for several land lords. Places like St Laurent or Place D'Olreans...I can't even think what might go there.

Really, REALLY big Tim Horton's!

[Kitchissippi]

Originally Posted by gjhall

Isn't that basically what Superstore and the newer, larger Loblaws stores are when you think about it?

Not really. These are still primarily grocery stores that happen to sell some clothing and housewares. If they come up with a format that is more focused on hard goods it could fill a niche that works in the mall context. Groceries and malls aren't really good fit which is why they rarely combine them anymore. Malls have too much traffic and generally are a more time-intensive experience,. People want in-and-out convenience when they're buying food

[rocketphish]

Giant Tiger sees 'opportunity' in Target's departure

Robert Bostelaar, Ottawa Citizen
Published on: January 15, 2015, Last Updated: January 15, 2015 9:53 PM EST

Just minutes after Target announced it will close its Canadian stores, the phones began ringing at the Giant Tiger headquarters in Ottawa. Anxious landlords wanted to know if the discount retailer was interested in suddenly available prime locations.

Giant Tiger’s response? Let’s talk.

“They’re worried about their position and trying to mitigate it as much as possible,” Giant Tiger president and chief operating officer Greg Farrell said Thursday. “It may be an opportunity for us in a number of those locations.”

Any property owner hoping Giant Tiger will take over a full Target space is being over-optimistic, however. The budget-goods specialist says it has no plan to veer from the smaller-is-better strategy that saw it move into only portions of former Zellers stores that Target rejected in its 2011 push into Canada.

“But absolutely, there’s quite a number of locations where we’d like to be in part of their space,” said Farrell.

There’s nothing small-scale about the aggressive pricing and marketing approaches that have helped Giant Tiger progress in the face of competition from U.S.- and Canadian-based chains and the ever-growing online retail alternative. After briefly putting itself up for sale in 2013, the 54-year-old chain rededicated itself to a long-term renovation and expansion strategy.

Giant Tiger has 206 outlets and another 13 in development — a number likely to grow as it examines Target locations.

Farrell said he had expected an early decision on Target’s Canadian future after its U.S. parent ousted CEO Gregg Steinhafel and installed Brian Cornell at the helm in July. But he called the move to send the Canadian division into creditor protection “a little surprising” because of its potential to damage relations with suppliers and lenders.

Privately held by founder Gordon Reid and others, Giant Tiger does not disclose financial results, but Farrell said returns have been generally strong and “the past season was a good season for us.”

He expects the impact of Target’s departure to vary by market, with the potential for increased sales in some but the prospect of increased competition in places where a high-volume retailer such as Walmart takes over. Walmart was among the bidders for the Zellers leases and now may want to pick up some of the pieces.

Farrell doesn’t, however, believe other U.S.-based chains will eye expansion north. Since Target, Nordstrom and other retailers crossed the border, the Canadian and U.S. economies have gone in different directions. More job growth and less consumer debt in the U.S. makes investment there more appealing.

Despite the opportunities for Giant Tiger, Farrell said he doesn’t welcome the manner in which Target is departing.

“We don’t like to see anyone fail, because of what that does to the Canadian economy, to the people that are going to lose their jobs, (and) to the vendors that are potentially going to get stuck with some bad debts on this one, because they’re also our vendors in many cases.”

[email protected]
twitter.com/robt_bostelaar

http://ottawacitizen.com/business/local-business/giant-tiger-sees-opportunity-in-targets-departure

[lrt's friend]

This may be an opportunity for Giant Tiger but they better proceed with care and not foolishly expand excessively. Will their model translate into much larger stores? Time will tell.

[Harley613]

Ahh Woolco. I got my first skateboard at the one at Merivale Mall in the mid 80's haha. That store had a ramp escalator if i remember correctly.

[wingman]

Originally Posted by Jamaican-Phoenix

Walmart must be challenged. Maybe it's time for a radical change since this affects hundreds of stores, dozens of cities, and thousands of Canadians.

There is no one in the marketplace that can compete with Walmart right now if convenience and your own bottom line are of the highest importance. I am not at all talking about anything else including quality, etc. And really, no one is even close at the moment.

[TransitZilla]

Originally Posted by Kitchissippi

Although I was half kidding about the Shoppers Drug Mart thing, I think the Loblaws/SDM conglomerate is powerful and rich enough to set up a new made-in-Canada mid-market department store. They already have a lot of the pieces — Joe Fresh, PC branded housewares, etc. — plus a massive integrated distribution system. Someone give Galen Weston Jr. a call....

Loblaws Superstores are already essentially exactly that, although they lack a furniture section.

Canadian Tire has all the pieces to be a player here as well. The newer, larger Canadian Tires have food, and Canadian Tire also owns Marks and SportChek which would provide clothing offerings (although not as stylish as Joe at the moment).

[1overcosc]

Originally Posted by bradnixon

Loblaws Superstores are already essentially exactly that, although they lack a furniture section.

Canadian Tire has all the pieces to be a player here as well. The newer, larger Canadian Tires have food, and Canadian Tire also owns Marks and SportChek which would provide clothing offerings (although not as stylish as Joe at the moment).

Joe Fresh is actually a really amazing clothing line. Stylish & affordable. Sometimes I wonder why people would ever shop at J. Crew when you can buy basically the exact same style at Joe Fresh for one fifth of the price. A few years ago they opened up a Joe Fresh standalone store in St. Laurent which does very well. If Billings Bridge or Bayshore subdivides the Target spaces that could one store to fill the void, Joe Fresh could be a possible tenant.

[c_speed3108]

.

[citydwlr]

Apparently Kohl's has also been cited as a possible replacement (via La Presse):

Target: d'immenses espaces à combler

Les noms de Loblaws, Canadian Tire et Kohl's - une chaîne américaine qui compte s'implanter sous peu au Canada - sont également cités par plusieurs experts.

Kohl's has been looking at entering the Canadian market for a while apparently...

[phil235]

Originally Posted by eternallyme

Many who work in Walmart even today were still originally hired by Woolco. All renovations were done with stores open too, mostly in the summer and fall of 1994.

Thanks for that. Clearly a more successful model.

I actually worked at Woolco around that time (I was one of the kids they hired when Sunday shopping began), but pulled the chute before I got to join the cult.

[c_speed3108]

Just thinking, I wonder if either Bayshore or Place D'Orleans might try for a Simons....

[J.OT13]

Originally Posted by c_speed3108

Just thinking, I wonder if either Bayshore or Place D'Orleans might try for a Simons....

I think they should hold off on further expansion for a while. Open the two already u/c, see how it goes. Don't pull a Target.

That said, I could see them go for Bayshore, but Place d'Orléans is not as much of a power house, though the large French population would be an asset.

It will be an interesting story to follow.

[eternallyme]

Originally Posted by J.OT13

I think they should hold off on further expansion for a while. Open the two already u/c, see how it goes. Don't pull a Target.

That said, I could see them go for Bayshore, but Place d'Orléans is not as much of a power house, though the large French population would be an asset.

It will be an interesting story to follow.

I agree. Start with the undisputed "A" mall in the region (the Rideau Centre) and work from there. Retail may change again before 2020...and the LRT could change patterns too.