Target’s well-known reputation for style and design might be getting the best of it in Canada. Rather than drawing customers into stores, shoppers may perceive prices to be higher.
“We know there is a gap in guest awareness of how low our prices really are,” said Gregg Steinhafel, chairman, president and chief executive officer. “We’re deploying multiple tactics. Our efforts will drive greater awareness.”
Chains such as Wal-Mart, Best Buy, Canadian Tire and Loblaws No Frills and Real Canadian Superstore offer price-matching guarantees against competitors, while Drug Mart and Loblaws full-line stores don’t. Target’s prices in Canada were higher than Wal-Mart’s, according to a price study by Kurt Salmon & Associates, which said pricing is a sensitive issue for Canadian consumers. KSA said some shoppers were surprised that Target’s new stores weren’t on par with the retailer’s pricing in the U.S.
“There’s certainly an interest in fashion and an awareness of fashion in Canada,” said Wendy Liebmann, ceo of WSL Strategic Retail, which recently completed a study, “How Canada Shops.” “The Bay and midtier department stores have upped their offer in anticipation of Target’s arrival. While Canada doesn’t have as many [retail] options as we do in the U.S., they have some good food options, like Loblaw. There may not be as many stores or retailers, but there’s Costco and Wal-Mart.” RELATED STORY: Target Net Slips; Revises Guidance Down >>
No one expects Wal-Mart to take the competition lying down. Wal-Mart said it will spend 450 million Canadian dollars ($430 million at current exchange) on growing its operations in Canada, a year after spending nearly $750 million to open 46 stores. The retailer, which offers fresh food in about half of its locations, plans to make fresh food available in all stores. Target has been aggressive in this area with PFresh in the U.S. In Canada, the merchandising is similar.
Liebmann said foreign retailers often underestimate the Canadian market. “The complexity of Canada is going to be more challenging than originally anticipated,” she said. “There’s a cultural thing that just makes it different.”
The Canadian retail scene will get more competitive. Safeway last week pulled out of Canada, selling its 223 stores to Sobeys, which will be a formidable competitor, experts said. Ann Taylor, J. Crew, Victoria’s Secret and Chico’s are looking to enter Canada, and Nordstrom is launching there in 2014.
One retail executive who’s not eager to open stores in Canada is Terry J. Lundgren. The chairman, president and ceo of Macy’s said in June, “We’ve looked at Canada longer than anybody. We’ve been looking for 15 years and many opportunities came that we passed up. There’s certainly growth happening in the market. There’s going to be an onslaught of retailers fighting it out for market share. My point of view is, I think it’s done. There’s going to be a big battle going on there for next 10 to 12 years.”
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye