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Target announces Starbucks as coffee retailer for Canadian stores (Starbucks Newsroom)

Loblaws launching loyalty program to coincide with Target entry (Globe and Mail)

Zellers reviews options for outlets ‘left behind’ (Globe and Mail)

Canadian malls are the Target of expansion(Montreal Gazette)

Sobeys and Target: a winning combination (Financial Post)

Target’s rejected sites in high demand by rival retailers (Globe & Mail)

Walmart, Canadian Tire in Target's crosshairs (Financial Post)

What we can expect: Tony Fisher talks about Target Canada (Financial Post)

Target’s Canadian foray hits cost hurdle (Globe & Mail)

Announcement of which Zellers are to convert coming by end of May? CTV

"Death of Canadian retail greatly exaggerated" Rona CEO (Financial Post

Impact on Canadian Tire (Financial Post)

Canadian Retail Industry Viewpoints (Profit Magazine)


Contact Target Canada

Target Canada Jobs Site

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    InterStratics is monitoring ongoing events relating to the Target Canadian expansion program and will provide "as is" updates based on publicly disclosed information.

    InterStratics Consultants Inc. is not affiliated with the Target Corporation or its Canadian development team.

    If you would like access any of the source files we have compiled (GIS, market analysis etc.) please contact us at:

    Target Canada Information Page here


    1. Target & Competition
    2. Which Zellers will become Target
    3. Target Map by Opening Date


    Responses of Major Retailers to Target's entry in to the Canadian Market (including current locations):


    Target Q4 Results

    Target released their Q4 results today which included updates for Canada.

    Below is a chart , compiled by us, comparing their Canadian and US performance:

    (US$, "Sales" from the US & Canadian Segment Results.

    Canadian opening days compiled from Target releases and exclude certain holidays.)


    Complete Q4 Release: from Target

    Target Q4 Conference Call, Excerpts mentioning Canada

    In Canada, we worked diligently to leverage holiday traffic in an effort to clear excess inventory. Markdowns resulting from this effort drove a very low gross margin rate, but allowed us to reduce average inventory per store in Canada by approximately 30% between the beginning and end of the fourth quarter.

    Canadian segment EPS dilution was $0.40 in the quarter, $0.05 better than the updated guidance we provided in January. We are pleased that our early cycle Canadian stores have seen the most improvement giving us confidence that we will continue to see continued improvement across all our Canadian stores in 2014.


    In Canada the team has moved from a year focused on opening a record number of stores to optimizing the business in run state. As we enter 2014 with a much cleaner inventory position, the team's number one operational focus is on in-stocks, ensuring we have the right quantity of each item in the right place at the right time. In addition, we continue to invest in technology and training to enhance both the tools our team uses and their ability to deploy them most effectively.

    We're also continuing to implement innovative marketing and merchandizing programs in Canada to raise awareness for our frequency categories like grocery, household essentials, beauty and healthcare. Throughout 2014 we will focus on conveying the depth and breadth of our assortment in those categories and the unbeatable value we provide to our everyday pricing, 5% of the awards, price match and our flier. With enhanced guest awareness of our unbeatable prices combined with the benefit of improved operations, we expect guest shopping frequency to build throughout 2014, driving improvement in sales and profitability.


    The fact that we experienced only 40 basis points of deleverage reflects strong control of variable expenses, given the magnitude of our comparable sales decline. In the Canadian segment, sales came in just below expectations. Importantly, as Gregg mentioned, we took advantage of holiday traffic to clear through a significant amount of excess inventory in the quarter. And while we expect some small lingering issues with long lean receipts this year, the Canadian segment ended 2013 in a much cleaner inventory position, paving the way for smoother operations in 2014. In all, the segment drove $0.40 of EPS dilution in the fourth quarter better than the expectations we provided in our January press release.


    Importantly, as part of our broader effort to rebuild traffic and sales in 2014 we will work to reaccelerate REDcard growth in light of the recent slowdown in growth we've seen following the data breach. In Canada in 2013 we generated just over $1.3 billion in sales on 124 stores which were opened on average for a little more than half the year. These sales were well below our plan going into the year leading to greater than expected markdowns on a meaningful amount of excess inventory

    Expense rate were unusually high as well as a result of opening early cycle stores with too many payroll hours, incurring incremental expense relating to clearing inventory and experiencing less leverage on fixed expenses.

    In the face of these challenges, the team worked tirelessly to improve operations and work through excess inventory throughout the year, clearing the way for an acceleration of sales and profitability beginning this year.

    Our early cycle store continued to outperform later cycle stores giving is confidence that our operations will continue to become more efficient as our business matures. And having dramatically reduced the congestion in our Canadian supply chain, we will increase the intensity of our marketing message in 2014 regarding value and assortment in our frequency categories. Over time we expect this will lead our Canadian guests to choose Target more often in these categories, driving meaningful increases in traffic and sales.


    In Canada, we expect total sales will be approximately double our 2013 experience. As we annualize last year’s124 openings and begin generating comparable sales growth in mature stores. On those sales we expect to earn a much higher gross margin rate in a range approaching 30%. But clearly we continue to see some near-term volatility until the Until the Canadian business matures.

    While we expect to see better fixed expense leverage in 2014, the SG&A rate will likely remain well above our long-term outlook in a range approaching 40%. Altogether, this will lead to a Canadian segment EBITDA margin rate of minus 8% to minus 10%, representing more than $400 million of expected EBITDA improvement from 2013.

    Source: Seeking Alpha


    Target Q3 Results

    Target Released their Q3 results today and the Canadian performance is lagging well behind expectations.

    To allow for comparability we have calaculated the average sales per store per day. To do this, we determined the # of days each store was open in the quarter, aggregated this total and divided it by the total sales amount. This method allows for some comparability among quarters within a growing portfolio. 

    Bottom line: the sales per store per day have been declining in Canada and are well below US levels which are in the neighborhood of $100,000.

    More to come....

        Target Canada
    Q3 (Released Nov 21) Period August 4 - Nov 2 Number of Stores (Ending) 91
    Number of Store Days 6,809
    Quarterly Sales $333,000,000
    Average Sales/ Store/ Day $48,906
    Number of Days in Quarter 90
    Q2 (Released August 21) Period May 5 - August 3 Number of Stores (Ending) 68
    Number of Store Days 4,689
    Quarterly Sales $275,000,000
    Average Sales/ Store/ Day $58,648
    Number of Days in Quarter 91
    Q1 (Released May 22) Period March 5 (CDN opening) - May 4 Number of Stores (Ending) 24
    Number of Store Days 1,110
    Quarterly Sales $86,000,000
    Average Sales/ Store/ Day $80,979
    Number of Days in Quarter  

    Target Releases Opening Dates for First Quebec Stores

    Target announced that 17 new stores in Quebec, Ontario and Nova Scotia will open on September 17th, with 9 more in Quebec to follow on October 18th (Newswire).

    Here you can view a map of all Target locations sorted by opening date, as well as a list with opening dates for each store.


    Metro to Run Target's Quebec Pharmacies

    Metro will operate Target's in-store pharmacies in the province of Quebec. Metro's Brunet banner will carry Target owned brands in 18 of the 25 locations set to open this fall. "The agreement with Target provides an excellent growth opportunity for Metro's pharmaceutical division ... as it enables us to significantly increase our presence, our purchasing power and our sales potential in Quebec," Metro Chief Executive Eric La Flèche said in a statement. (Canada Newswire)


    Target's Presentation at Decisions Conference - Excerpts Regarding Canada

    Clearly, there is a lot to talk about on the Target story. The opening of the first stores in Canada a couple months ago, continued progress in the U.S. with REDcard and Pfresh, ecommerce, supply chain and lots and lots more, I think John is going to start with some opening comments and then we’ll turn it into a Q&A. --What else, Canada, it has been a Herculean effort, I would say over the past two years to get where we are today where we have 48 stores operating in Canada and position to open 76 more throughout the rest of the year. --We are really pleased with the reception we received from our Canadian guests. The surge has been dramatic. I’ve talk to many of you about we saw significant surges in traffic as we open the source and the second wave.

    Click to read more ...