Canadian Retail Thread

[manny_santos]

Originally Posted by Mrs Sauga

Just curious, why did Target have to go to an Ontario court to get liquidation sale. Did they also go to a BC, Quebec, or Manitoba court to apply for liquidation sales in those provinces too?

I'm not entirely sure, but I suspect their Canadian division was incorporated in Ontario.

[manny_santos]

Originally Posted by svlt

17,000 jobs are lost and all people can care about is how the liquidation sales are going.
Do people not realize very few retailers are able to keep US pricing in Canada?

This whole Target thing is such a mess it's upsetting even to a casual observer. 95% of the blame falls on Target for not doing their market research and not committing to supporting their expansion at all. 5% can be assigned to cheap Canadians being, well, cheap as always.

In many cases the retailers choose to charge more in Canada because they can. Most of the others reasons retailers give are pathetic excuses. There are cases where there are tariffs that increase the cost of goods, but in many other cases it is purely strategic. While companies will not likely admit to doing it, the practice is taught in business schools. In global marketing, a big part of pricing for each country is strategic.

Of course I'm worried about the jobs too, but as a business analyst the whole Target story has been very fascinating to me, and there's a ton to learn from it.

[casper]

Originally Posted by manny_santos

In many cases the retailers choose to charge more in Canada because they can. Most of the others reasons retailers give are pathetic excuses. There are cases where there are tariffs that increase the cost of goods, but in many other cases it is purely strategic. While companies will not likely admit to doing it, the practice is taught in business schools. In global marketing, a big part of pricing for each country is strategic.

Of course I'm worried about the jobs too, but as a business analyst the whole Target story has been very fascinating to me, and there's a ton to learn from it.

Its not even a Canada vrs US thing. You charge what is appropriate for the local market. Take grocery stores as an example. A Safeway in an affluent part of town with no nearby competition will charge a higher prices that one where there are two or three competitors within a block or two. The flyer prices will be same everywhere to match the marketing but the regular prices will be tailored to the market. I would not be surprised to see the same thing with department stores.

[MalcolmTucker]

Originally Posted by manny_santos

In many cases the retailers choose to charge more in Canada because they can. Most of the others reasons retailers give are pathetic excuses. There are cases where there are tariffs that increase the cost of goods, but in many other cases it is purely strategic. While companies will not likely admit to doing it, the practice is taught in business schools. In global marketing, a big part of pricing for each country is strategic.

Of course I'm worried about the jobs too, but as a business analyst the whole Target story has been very fascinating to me, and there's a ton to learn from it.

Especially on very low margin goods like clothing tariffs are a problem since Canada and the USA use different strategies. There is a broad exemption on textile tariffs for least developed countries in the USA, but in Canada there is not. The tariffs in Canada are 17-18% http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2014/html/00/ch61-eng.html & http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2014/html/00/ch62-eng.html

Are there any companies that this benefits? It isn't like Canada Goose only exists because of tariffs.

[casper]

Originally Posted by MalcolmTucker

Especially on very low margin goods like clothing tariffs are a problem since Canada and the USA use different strategies. There is a broad exemption on textile tariffs for least developed countries in the USA, but in Canada there is not. The tariffs in Canada are 17-18% http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2014/html/00/ch61-eng.html & http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2014/html/00/ch62-eng.html

Are there any companies that this benefits? It isn't like Canada Goose only exists because of tariffs.

You also have to look at the tariff that the manufacturing country has on Canadian goods.

[MalcolmTucker]

Originally Posted by casper

You also have to look at the tariff that the manufacturing country has on Canadian goods.

Not really. Tariffs only hurt the consumer. We really have a thriving $15 polo shirt manufacturing industry eh? Better maintain that import tariff! Our tariffs on TVs means there is a domestic TV manufacturer right? The only industry we have effectively protected is the supply managed commodities, where we transfer wealth from everyone to millionaire farmers, and it only works because the tariffs are astronomical, like 200%+!.

[mersar]

My wife decided to go to the Target in Shawnessy in Calgary yesterday, and she said insane was the best word for it in terms of how stupid people are. Despite next to nothing being on sale and some things being more expensive than they had been, the lineup for the tills stretched across the store, people had heaping carts of stuff and one person she asked said they'd been in line for 2 hours to pay. The parking lot was worse than boxing day or black friday at their worst. She had a few items in her cart but decided it wasn't worth the wait for the 10% off those few items so she just abandoned the cart, and she wasn't the only one who had.

[esquire]

^ Honestly, what did people expect? Day 1 of a liquidation and they think everything in the store is going to be 99 cents?!

[manny_santos]

Originally Posted by esquire

^ Honestly, what did people expect? Day 1 of a liquidation and they think everything in the store is going to be 99 cents?!

I think people expected more stuff to be 30% off than actually was.

[SpongeG]

Originally Posted by manny_santos

Not surprisingly, the liquidation sales at Target stores across Canada have been a disappointment so far.

http://www.cfra.com/news/2015/02/05/bargain-hunters-leave-target-stores-disappointed

People coming out of the store empty-handed. Classic.

And then there's this gem from CBC:

CBC reporter Aaron Saltzman spoke to construction worker Chris Makris at a Toronto-area store who scoffed at buying a TV for $399 because he claims the same set only cost $199 at the same store two weeks ago.

And finally, from the National Post:

MaryAnn Cooper of Sydney, Nova Scotia said baby wipes that she usually pays $1.92-$2.09 for were now $3 a package and clothing that had been on clearance for $3.50 is now back up to $7.

Amazing how people bought into the hype.

Target has nothing to do with the stock and prices anymore, it's handled by an outside liquidation company. the liquidator gets to keep any unsold merchandise and liquidate it to stores like big lots, winners etc. so they don't really have much interest in clearing it all out at bargain prices.

when sears shut down here in vancouver they had a liquidation sale, first days was 10% off store wide, it took a few weeks to reach 50% off an only then did stuff start to empty out. a lot of things didn't even go any lower than 30% off.

my friend had bought an item on clearance a few weeks prior and we went to the sale and they had actually peeled off the clearance stickers prices and were offering only 10% off at that time. They go back to all the original prices.

[Nouvellecosse]

Well I had a pretty good time at the Zellers liquidation and got a number of things 50-70% off but that was definitely a few weeks in and it wasn't everything in the store. It required picking through stuff a lot to find the best bargains. But the time most things are really low the inventory is so picked over you're unlikely to find much you want. I suppose it's all a matter of luck.

[Marty_Mcfly]

Originally Posted by Nouvellecosse

Well I had a pretty good time at the Zellers liquidation and got a number of things 50-70% off but that was definitely a few weeks in and it wasn't everything in the store. It required picking through stuff a lot to find the best bargains. But the time most things are really low the inventory is so picked over you're unlikely to find much you want. I suppose it's all a matter of luck.

I furnished half of my apartment in Charlottetown with Zellers liquidation products. You just can't be too picky with what you get when it's 70% off. I expect much of the same with Target (I'm really hoping to get a chest freezer that I can turn into a beer fermentation chamber)

[miketoronto]

I walked into Hudson's Bay Queen Street last night to check something out, and I was shocked to find no menswear on the second floor.

Turns out they moved all menswear to the fifth floor, and it is huge. The design reminds me of European department stores I was just in. I have to say they did a great job.

Interesting thing is this was not really made a story. They just moved it, and it has not really been announced.

I am suspecting they are getting ready to build the food hall in the lower level?

[casper]

Originally Posted by SpongeG

Target has nothing to do with the stock and prices anymore, it's handled by an outside liquidation company. the liquidator gets to keep any unsold merchandise and liquidate it to stores like big lots, winners etc. so they don't really have much interest in clearing it all out at bargain prices.

when sears shut down here in vancouver they had a liquidation sale, first days was 10% off store wide, it took a few weeks to reach 50% off an only then did stuff start to empty out. a lot of things didn't even go any lower than 30% off.

my friend had bought an item on clearance a few weeks prior and we went to the sale and they had actually peeled off the clearance stickers prices and were offering only 10% off at that time. They go back to all the original prices.

I was in one of the Victoria stores today. A lot of empty shelves. Most items are 10% and some 20% off. The lineups were short. Perhaps there is more inventory to come as they clear out the warehouses. I don't think it is going to take a lot of discounting or time to empty out those stores.

[srperrycgy]

Before the closure announcement, I shopped at the Signal Hill Centre Target here in SW Calgary fairly regularly. No more. I won't be a scavenger a second time. However, their parking lot was full yesterday afternoon. So, I don't think they'll have a problem clearing out the inventory.

[SpongeG]

misleading CBC story, of the 29 new stores most of them are apparently walmart stores becoming supercentre walmart stores, so most of the 29 are already existing...

Walmart Canada plans 29 new stores in $340M expansion

Expansion plans come just weeks after Target announces it is leaving Canada

By Pete Evans, CBC News Posted: Feb 11, 2015 7:49 AM ET Last Updated: Feb 11, 2015 11:40 AM ET

Walmart says it plans to add 29 new supercentre stores in Canada over the next 12 months.

The expansion plan announced Wednesday is expected to cost $340 million and create 3,700 construction jobs, 1,000 in-store jobs and 300 new positions at distribution centres.

Target Canada's failure leaves store landlords scrambling for new tenants
The move comes after 11 new Walmart supercentres opened across Canada in January, and on the heels of Walmart rival Target's ignominious retreat in the coming weeks from the Canadian market, less than two years after opening to much fanfare.

Although an impressive figure, the $340 million is actually less than the retailer said it pledged to spend in 2014 this time last year, when it said it was planning on spending $500 million and open 35 new stores.

The total price tag will include the remodelling and expansion of several stores to add full grocery departments.

The $340 million total includes the following spending plans:

Roughly $230 million on new stores.
$75 million to add distribution centres.
$35 million to beef up the chain's online offerings.

...

http://www.cbc.ca/news/business/walmart-canada-plans-29-new-stores-in-340m-expansion-1.2953020

[SpongeG]

Dollar Tree, Dollarama growing in Canada

The number of dollar stores in Canada is growing, and so is the selection they offer, which is concerning to their big box competitors, said a Vancouver retail analyst.

"The dollar stores are nipping away at the drug stores, grocery stores, Walmart," said David Ian Gray.

Dollarama has 900 stores across Canada and is opening 70 to 80 more per year. The Montreal-based company saw profits increase last fall.

A competitor, Dollar Tree, is also growing. It now has 200 stores in Canada, up from 86 in 2010.

"You know that when you come to our store, you're gonna get great value whereas in the past I think people figured if I don't go to Walmart or a big box store, I'm gonna be paying too much," said Joe Calvano, president of Dollar Tree Canada.

...

http://www.huffingtonpost.ca/2015/02/10/dollar-tree-dollarama-gr_n_6654696.html

[kwoldtimer]

I had occasion to go into a Dollar Tree for the first time in December, looking for cheap gift boxes, and I thought it was a bit nicer than the average dollar store, at least in terms of cleanliness and general layout.

[SignalHillHiker]

Originally Posted by kwoldtimer

I had occasion to go into a Dollar Tree for the first time in December, looking for cheap gift boxes, and I thought it was a bit nicer than the average dollar store, at least in terms of cleanliness and general layout.

I... This is worse than Brian Williams to me. YOU in a Dollar Tree?

[kwoldtimer]

Originally Posted by SignalHillHiker

I... This is worse than Brian Williams to me. YOU in a Dollar Tree?

Have you forgotten that I'm a Scot?! Look after the pennies and the dollars will look after themselves and all that!

I also can get away with it because it is TOTALLY unlikely that I'll bump into anyone I know while I'm there (anonymity at the service of frugality, as it were).