Is this really happening? Yes, it is.
Disclosure: Belus Capital Advisors presently rates shares of Target a sell. To view that report, please visit the Thomson/Starmine platform or send a confidential email here.
At this point, I am just going to let the pictures below supplied from our Target Canada source speak for themselves. I have written extensively on Target Canada since its launch, offering up all of the relevant financial facts to support the sorry visuals. However, I will inject this new thought stream after talking with our source.
The fundamental issues, from keeping shelves stocked (process and tech related) to articulating a low price message to skeptical Canadian customers, appears to be getting worse at the division instead of stabilizing as suggested by management on the third quarter earnings call. One almost is overcome with this creepy feeling (at least we are given our close tracking of the situation) that Target will go the way of many U.S. brands that ventured into Canadian retailing…extinct.
Throwback Pieces on Target Canada
In looking at all of the pictures dating back to the initial piece, you can sense the situation becoming worse…
This is What’s Happening at @TargetCanada Right Now
- Date: January 14, 2014
O’ Target Canada!
- Date: August 19, 2013
The NEW Vertical Slideshow
Ever see a table like this at your local Target? Yes, that is 90% off. Yes, it’s irrelevant that most of the merchandise appears to be holiday, that type of discount is alarming at a newly opened business.
Not holiday merchandise.
Actually, it looks as if workers are being told to push up merchandise on the shelves because the store is unsure on when new shipments will arrive.
There goes that higher margin sale.
To get a feel for the food out of stock issue.
Out of stocks on every shelf.
Curveball: forget the empty shelves, look at the dominant clearance signs on the cheap chic items Target is known for in the U.S.
Missing: cheap chic in stock.
You should get the message by now.
Forget those impulse buys at checkout. Good to see Starbucks in a Target Canada, however.