February 5, 2014

Why Target Canada missed its Target (Market)

Hint – it has to do with the products

This blog post is a Market Research assignment for my Advertising class

On February 3 rd , around 10AM, my advertising class converged on the Target stores in Winnipeg. A few of us went to the Grant Park location, which is newly renovated in place of the old Zellers building attached to the mall. We observed shoppers, the employees, and products to determine what the target market is for Target Canada at that specific time of day.

A group of us walked in around 9:50 and there were not too many customers in the store. I saw three customers total in the first 15 minutes of being in the store. They were younger and didn’t seem to be buying anything particular, just killing time. They are probably Target's intended market.

Photo credit: Kenton Larsen
Just before 10:30 more and more customers began to arrive to shop. Most were retirees, with about 60% of them being women. The products they seemed to buy were a variation of food and clothes. Some had small appliances but there didn’t seem to be a consensus on what they were all purchasing. I personally didn’t see anyone purchase more than ten items at one time. If there was an express checkout they were all under the item limit.

The secondary market during that time was young mothers, with their small children. The children were mostly sitting in the shopping cart while the mothers bought an array of items as well.

The employees seemed to have a consensus of Target Canada is doing okay sales wise but right now they are very slow due to it still being so close to Christmas. They expect to pick up in the next few months.

Expectations were high for Target Canada, and even the employees seem to be annoyed by the questions of “how come you don’t have (insert item only available in the USA)?” This is the biggest draw for Canadians to come to Target, yet Target does not actually have those items. Without those items Target is just another Zellers, Walmart, or Superstore . If Target doesn’t get in those products the target market they currently have (and their intended market) won’t be changing their pattern of shopping at those stores over Target.

I do hope Target gets in some of the US products but until then I will continue buying BBQ sauce, beef jerky, and Trix in Grand Forks on my regular trip down there.

3 comments:

Zach Samborski said...

I liked Zellers better because it had a great in-store restaurant with decent prices and good menu options. Target just has Starbucks Coffee. I will say, though, that Target has the best powdered mini donuts, and that's the only reason I'll keep coming back.

Kenton Larsen said...

Zach's comment is the second one praising Zellers that I've read today. Who would've thunk it?

Zach Samborski said...

I mostly liked Zellers for nostalgic reasons. The store always had this early 90s vibe that brought back memories of those commercials with the Zeddy bear ("the lowest price is the law!"). But that restaurant was pretty awesome all around.