Target's Next Big Leap in Canada
In order to expand its global footprint, Target Corporation (TGT) has been focusing on the Canadian market for quite some time now. To materialize its plans, the company will be opening 124 stores in 2013, with the first 24 to be inaugurated in Mar 2013 and spread across Ontario.
After unveiling 3 pilot stores at Stone Road in Guelph, Milton Mall Shopping Centre in Milton and Gates of Fergus in Fergus on Mar 5, this Zacks Rank #3 (Hold) stock will open 17 locations today. The remaining 4 stores are slated to open on Mar 28.
We believe that the opening of stores outside the United States will definitely boost the company’s top and bottom lines and improve its cash flow generation capability. The stores will carry items ranging from beauty and apparel to home, grocery, and personal care.
Some of the brands that would find shelf space in the Target stores include Nate Berkus Collection, the Sonia Kashuk Collection, Giada De Laurentiis and Shaun White apparel. The stores would also feature a wide range of Target owned and exclusive brands, such as C9 by Champion, Circo, Archer Farms, Market Pantry and Up & Up.
Today, the people in Canada will gain the access to 17 new Target stores. These stores will be opened at Ajax - Durham Centre, Aurora - Aurora Shopping Centre, Brampton - Shoppers World Brampton, Burlington - Millcroft Centre, Cambridge - Cambridge Centre, Etobicoke - Cloverdale Mall, Hamilton - Centre Mall, Lindsay - Lindsay Square Mall, London - Masonville Place, London - Westmount Shopping Centre, Newmarket - Upper Canada Mall, Orillia - Orillia Square Mall, Toronto - Centrepoint Mall, Toronto - East York Town Centre Waterdown - Flamborough Power Centre, Whitby - Taunton Road Power Centre and Windsor - Devonshire Mall.
The remaining 4 outlets will commence operations next week in Brampton - Trinity Common, Burlington - Burlington Mall, Mississauga - Square One Shopping Centre and Toronto - Shoppers World Danforth.
Target intends to focus on its core businesses. The company plans to sustain its remodeling program at the existing general merchandise locations by the addition of an expanded food section along with a greater assortment of dry dairy and frozen items, improved store layout and enhancement of in-store shopping experience across departments, such as apparel, home, beauty, shoes and baby.
Alongside, Target is seeking promising expansion opportunities in international markets such as Canada and Latin America. Recently, the company revealed its plans to introduce smaller-format stores called CityTarget, similar to that of its biggest rival, Wal-Mart Stores Inc. (WMT).
Moreover, Target announced its year-round price matching policy with the aim of offering its patrons the facility to match the prices offered by online retail giants.
The company will match prices with Amazon.com Inc.’s (AMZN) Amazon.com, Wal-Mart’s Walmart.com, Best Buy Co. Inc.’s (BBY) BestBuy.com, and Toysrus.com. Target believes that its price matching policy coupled with the REDcard reward program would provide it an edge over its competitors.
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