(kramerst)
Last week, we learned that Walmart would be taking over thirteen former Target Canada stores and a distribution center. Today, home improvement chain Lowe’s announced that is taking over twelve store leases, one store that Target owned, and one distribution center.
Other retailers have apparently learned something from Target’s failed Canadian invasion: when expanding into a new and very large country, make sure that you have the supply chain to back up your network of stores. This was one of many problems that customers reported with Target Canada: the chain had to be very generous with rain checks, since they would run out of items that were on sale.
Target didn’t build its empire up north from scratch: Target took over existing locations belonging to Zellers, a Canadian discount chain considered downmarket from Target. Using the same locations and hiring many former Zellers staff, comparisons were inevitable. Taking over locations from a failing chain wasn’t such a great idea, either, but at least some of these stores are apparently good enough for Walmart and for Lowe’s.
Lowe’s to expand Canada presence by buying Target leases [Charlotte Observer]
by Laura Northrup via Consumerist
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