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14 Headshaking Photos that Show Target Canada Has A Major Problem

Tyler Durden's picture




 

Having dramatically exposed the dismal state of JCPenney stores and the sad dismantling of Sears, Belus Capital Advisors' Brian Sozzi has gone north and found his another sad retail spectacle... in Target Canada.

 

Via Brian Sozzi of Belus Capital Advisors,

This can’t be happening, can it?

When I last talked with Target a few months back, best believe that a few moments were allocated to discussing the state of the Canadian business. Strangely, ever since I began to chronicle the Canadian store operations for our coverage on Target, the situation has seemed to worsen. That is quite the opposite of what I was being pitched by Target on the phone, predominately that the business’ operations were on track to be structurally tightened and 1Q14 would represent some sort of mini rebirth. I hung up the phone skeptical, as Target’s assertions did not match what my own two eyes were seeing, consistently, on the ground. Now, that skepticism is at an all-time high, and the 14 photos below bring you into the Target Canada world I continue to study.

Ahead of Target’s May 21 earnings release, this much is clear regarding the Canadian misfit (yes, misfit, not outfit):

  • Target Canada does not get in this shape if there weren’t leadership voids inside the operation, from stores to higher up the food chain. No retail executive would want their names associated with a business that is unable to keep basic items such a food and detergent on the shelves.
  • Whatever Target Canada’s leadership IS doing, in concert with HQ directives, is not solving the fundamental issues at the stores and within the supply chain.
  • With subpar locations that in some cases sell food on the second floor, a new Target CEO must consider using the company’s balance sheet to exit leases early and pare down to the very best sites. From there, once the operations of the business are repeatable, then Target could expand.

14 Photos that Say it ALL About Target Canada

Quick, as you look at this, imagine you are a consumer inside Target Canada.  What would you think/feel when seeing this wicker basket presentation?  Exactly…

Target 15

Zombie shelf. (<—trademarked term).

Target 14

Not only are the display items oddly missing (people must be buying them), where in the world is the inventory.  BTW, look in the background, see the barren hanging clog section?  Zombie shelves.

Target 12

Rule #5 in retail: end caps are profit zones.  Kids touch end caps and show mom their grabbings, enticing moms to buy.   That is not happening at Target Canada, zombie end caps continue to be the norm, showing that void in leadership (no attention to detail).

Target 11

Sad.  Aisles are supposed to draw in your eye from far away.  Are you compelled to visit this section?

Target 10

Unbeatable prices on non-existent merchandise.

Target 9

The toy section also continues to be a problem zone for Target Canada, consistently out of stock and not merchandised correctly.  Here, a flea market feel.

Target 8

Paging Hasbro, this is how Barbie is being presented at Target Canada.

Target 7

Time to reorder some out of stock toys?

Target 6

No, this is not Sears Canada…

Target 5

A Merona zombie shelf for $10.00.  Back up the car, this fixture could be yours!

Target 4

Maybe Target Canada should reduce the height of its racks to at least make them appear well stocked.  There are only seven different rugs on the entire lower shelf.

Target 3

Yes, hi, 70% off on imaginary merchandise.

Target 2

Twelve slots to hold pillows.  Four slots used.

Target 1

 

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Mon, 05/19/2014 - 13:54 | 4774462 1stepcloser
1stepcloser's picture

What?  EBTs only go no limit in canadian targets?

Mon, 05/19/2014 - 13:58 | 4774476 Sid James
Sid James's picture

Haven't seen shelves that empty since Moscow in 1980. Seems Canada might be in need of some urgent Perestroika.

Mon, 05/19/2014 - 14:03 | 4774510 lynnybee
lynnybee's picture

when are these "rent seekers" gonna get it.   shopping is done!   no one cares anymore; been there/done that.   AND, after losing bigtime in the stock market, the housing market & Z.I.R.P. ..... we really don't care anymore !   IT'S OVER, PEOPLE, I'M DELIBERATELY NOT PLAYING THIS GAME ANYMORE.   IF I HAVE ANY MONEY IT'S GOING INTO FIRE ARMS, METAL & FOODSTUFFS.   I've lost at everything the past 20 years, lost jobs & can't even find a decent job anymore.   lost in the so - called 401k which is also a pre-planned rip-off & scam designed & implemented for the sole purpose of being a dumping ground for Wall St.'s losing positions.   I KNOW WHAT'S GOING ON.  I'M NOT STUPID ANYMORE.   NO MORE, I'M NOT NOT NOT HANDING MONEY OVER TO ANY "STORES" ANYMORE JUST TO WATCH SHAREHOLDERS GET RICH & I GET STUCK WITH THE WORTHLESS MERCHANDISE from CHINA, where those poor souls are earning shit wages, too ! 

i'm saying this again right into CORPORATE AMERICA'S collective ear :   go find someone else to rip off.   i'm done, my kids are done cause they can barely afford food & gasoline.    & AS FOR BUFFET & ACKMAN ..... go ____ yourselves.  you got rich at someone elses expense.

(i don't post often anymore, i've said it all 100 times over / luv u all on this website.)

Mon, 05/19/2014 - 20:32 | 4775630 FredFlintstone
FredFlintstone's picture

Whoever gave you red can suck it!

Mon, 05/19/2014 - 14:03 | 4774511 Bunga Bunga
Bunga Bunga's picture

Calm down, empty shelves are a completely normal symptom in central planning.

Mon, 05/19/2014 - 14:05 | 4774518 orangegeek
orangegeek's picture

Canadian productivity as usual. 

 

Nortel, Flopberry...the legend continues.

Mon, 05/19/2014 - 14:06 | 4774519 jonjon831983
jonjon831983's picture

From what I heard, this is isolated to Canada Target from when they started pushing into Canada some months ago.  CT's problems stem from supply chain mismanagement or something like that and other local and foreign retailers are doing just fine.

Mon, 05/19/2014 - 15:15 | 4774720 10PastMidnight
10PastMidnight's picture

from what you heard?  sounds more like corporate hopium you ingested to me, better stick a finger down your throat and vomit before it's too late, that stuff's toxic you know.

 

 

Mon, 05/19/2014 - 23:16 | 4776142 jonjon831983
jonjon831983's picture

This has been ongoing ever since Canada Target(s) started opening up some stores back in March 2013 (http://pressroom.target.ca/news/target-announces-opening-of-three-pilot-...).

 

Googled Target Canada and a couple interesting articles popped up.

http://www.canadianbusiness.com/companies-and-industries/target-becomes-... <-April 2013.

"But the real war is being waged over the supply chain, behind the scenes. Ahead of Target’s opening, both competing retailers noted that the vendor structure in Canada is more complicated and difficult than it is in the U.S., says Jan Kniffen, an independent U.S. retail analyst. To him, that’s a polite way of saying the incumbent chains are using their clout to try to dissuade vendors from selling to Target. The only difference is that in the U.S., retailers would have come out and said that openly, he says."

http://www.canadiangrocer.com/blog/target-canadas-supply-chain-woes-38347 <- March 2014

- This blog post outlines the differences in Target's Canadian and US supply chain.

 

I would concur with supply managment and leadership problems.  Which if the photos and notes by the author are accurate then yes, Canada Target has had a seriously had internal problems since its move into Canada.  One can imagine how badly this has damaged curious consumers' perception of Canada Target and become a self-fulfilling spiral for their Canadian operations.

Taking a look at the photos and from the photos the floors are maintained pretty nicely.  Boxes are stacked well and items are within respective areas. Look at the towels; are they scattered and unfolded? They are folded and placed nicely (at least for mass-retail).  If you have a chance to walk into a closing retail store that is dumping inventory with storewide discounts you will get an idea what I'm talking about.  Staff will barely be around because most are manning the cash as they sell off the good stuff at 30% discount.  A few staff will be fruitlessly attempting to stack the least wanted products, but most of these will continue laying around scattered on floors, shelves, and bins waiting for people to buy; when a few weeks later they bump everything in the store to a 40%,50%,60% discount until everything including the hangars, bins, tables, and shelves are sold.

Mon, 05/19/2014 - 14:20 | 4774575 p00k1e
p00k1e's picture

When was the last time any of you shopped at Sears?  And what would you buy there - old lady clothes, Craftsman crap, overpriced appliances or is the three hour wait for overpriced tires appealing? 
  

Mon, 05/19/2014 - 14:21 | 4774581 One of We
One of We's picture

What's the problem?  I see some nice clean fixtures there that I'm sure could bring top dollar in one of the booming growth economies-oh yeah...I could use a little more peg board in my garage?

Mon, 05/19/2014 - 18:27 | 4775252 BeetleBailey
BeetleBailey's picture

COSTNER WILL BUY THOSE SHELVES!

(UNDER) WATER WORLD!!

http://www.metacafe.com/watch/an-5m_5YbYJh42b/waterworld_1995_buying_sup...

Mon, 05/19/2014 - 14:21 | 4774583 mattgallis
mattgallis's picture

worst.fucking.post.ever

 

Mon, 05/19/2014 - 14:37 | 4774607 Mi Naem
Mi Naem's picture

While many come to ZH in large part for the Doom Porn, you gotta show better stuff than this. 

This post is like a Playboy bunny with armpit hair, dingleberries, and an "I don't regret my abortions" tattoo. 

Mon, 05/19/2014 - 14:43 | 4774635 darkpool2
darkpool2's picture

This is no surprise at all......the Target in Chinook Center ( the premiere Mall in Calgary) invariably looks like this and has done so since it opened. Their Cdn operations are really in an atrocious mess.......makes the Walmart stores look like. Nordstrom !!!

Mon, 05/19/2014 - 14:44 | 4774640 exartizo
exartizo's picture

ummmm.. not sure what planet this guy is on because Target shelves have ALWAYS looked that way where I'm from.

Mon, 05/19/2014 - 14:54 | 4774670 Quinvarius
Quinvarius's picture

Just like Weimar Germany.  Empty shelves everywhere due to hoarding.  Heh.  I doubt that.  But they ahve been crapping all over the CAD for a couple months and Canadians are not as stupid as Americans.

Mon, 05/19/2014 - 14:54 | 4774671 epobirs
epobirs's picture

The only time I've seen a store like that was when they were closing the location and clearing out the inventory. But in those case you usually tell by the signs everywhere indicating the markdowns. This happened recently with some supermarkets in the region. In one case, a Ralphs had been intended to shut down ten years earlier when a much larger Ralphs was built three miles down the road and better situation for most residents. But they kept the smaller one open anyway until just recently. Likewise, two Albertsons stores in the area were closed, both in close proximity to Vons (Safeway) stores. Albertsons corporate parent is looking to buy Safeway and I suspect the closures were in preperation for that deal. Further, I wouldn't be surprised if the remaining Albertsons in the area become Vons stores and vice versa in areas where Albertson

 

I keep hearing about Wal-mart coming to town and wiping out the competition but it doesn't appear to work that way around here. Since Wal-mart entered the region the Target stores have added groceries, niche players like Whole Foods, Vallarta, Smart & Final, Trader Joe's, and Sprouts have appeared or expanded, and the big three LA supermarkets (Ralphs, Vons, and Albertsons) just keep going. I don't know where the money is coming from but people haven't given up eating. Job market is horrible and I haven't had work in over a month I don't lack for places to buy groceries.

Mon, 05/19/2014 - 15:02 | 4774690 NYPoke
NYPoke's picture

We are a long, long way from Canada & see similar issues with Target.  Their shoes haven't been stocked well for years.

 

They keep stuff on the shelves.  However, they DON'T restock the things we buy the most.  Takes over a month to replace some of the goodies that we like.

 

Honstly, I don't think it is margins or shipping.  Every indication that the people in charge are idiots & don't understand basic consumerism, which is pretty sad.

Mon, 05/19/2014 - 15:05 | 4774698 pitz
pitz's picture

Its somewhat a similar deal at Amazon.ca as well -- only a very limited subset of the overall Amazon product offerings are available on their website, to the point where Amazon isn't even remotely competitive.  Seems that US retaillers don't really 'get' it -- Canadians will not tolerate only being able to purchase a subset of the goods offered in US stores.

Mon, 05/19/2014 - 16:59 | 4775020 umdesch4
umdesch4's picture

+1000

I can come up with a dozen examples in any given week of things I'd buy if I could get them in Canada, or get them for less than 5 times the price they are in other countries.

In a way, it's good though. With the money I end up saving, I'm probably better off. I'll just live with things like a phone that needs to be charged twice a day because I can't source a replacement battery in Canada, lower efficiency solar panels on my roof because we're "not allowed" to have the newer, better ones up here, cheaper quality appliances in my kitchen because it costs a fortune to ship decent ones up here, and crappier headphones for my daily commute to work...to list some examples from this week.

Arguably, these are all first world problems, but "shut up and take my money" has a different sense of desperation up here. I hate wasting money on inferior products, so I typically just go without.

Mon, 05/19/2014 - 15:33 | 4774778 stutes33
Mon, 05/19/2014 - 16:47 | 4774983 IridiumRebel
IridiumRebel's picture

http://www.vincelewis.net/unsoldcars.html

The above link is where the info came from. If there is any untruths, they should be directed here, although a better vetting of stuff by ZH may need to be employed. Nobody bats 1000.

Mon, 05/19/2014 - 15:36 | 4774784 robertocarlos
robertocarlos's picture

This is all part of a plot by the US and Canadian govts to entice Canadians to join the USA willingly for lower prices. As soon as Obamacare morphs into a one payer system like Canada then the dirty deed will be done. Probably in the next decade. Fuck lower prices!

Mon, 05/19/2014 - 16:24 | 4774921 hero HNL
hero HNL's picture

Shelves are empty because wholesale prices have risen....especially chinese products & difficult to get merchandise unless you have your own source.

 

In Japan, shelves do look a bit emptier but not as bad. On top of that, prices are rising. Manufacturers are right now moving away from china to other cheaper Asian countries.

 

Even the crisis in Vietnam/China is contributing to the shortage.

Mon, 05/19/2014 - 19:20 | 4775380 lex parsimoniae
lex parsimoniae's picture

Don't know if these photos are A. empty shelves at the end of a sale day B. empty shelves due to poor buying C. empty shelves due to lack of capital

However, if it's because they can't get the merchandise it would dovetail with a trend that seems to be growing in my industry as well as others I know of that have been relying on Chinese suppliers. I'm a US manufacturer, 2 plants in 2 states. We've been seeing a return of US customers from China buying. seems the stuff is all of a sudden pricier & harder to get.

Can't help but wonder if this is why WalMart is adverstising they'll 'invest' 250 (is it b or m?) into US Manufacturing over the next several years. 

Mon, 05/19/2014 - 16:26 | 4774928 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Am I the only one who almost never walks out of a Target with what I went there hoping to find and purchase?  I don't know who they cater to (my guess would be 20-something females), but it ain't me...

Mon, 05/19/2014 - 16:35 | 4774948 Angry Plant
Angry Plant's picture

Looks likw store is simply to big for the market.

Mon, 05/19/2014 - 16:35 | 4774949 Fix-ItSilly
Fix-ItSilly's picture

Last weekend was "Memorial Day" in Canada. When were those photos taken? If this past week, they may be a sign of a superb holiday sale.

Mon, 05/19/2014 - 17:12 | 4775040 atthelake
atthelake's picture

Stock up on necessities, if you can.

Mon, 05/19/2014 - 17:11 | 4775041 atthelake
atthelake's picture

This becomes serious for the consumer only when the food shelves are understocked and I think that will happen in my lifetime.

Mon, 05/19/2014 - 17:30 | 4775077 hairball48
hairball48's picture

I live in a county bordering Canada. The Canadians come down here in droves to shop at our "megamall" shopping area.

A mall that didn't exist 12 years ago when I moved here. When I questioned why such a big mall for such a relatively small, poor(ish) county...all I heard was, "the Canadians will support it."

The Target store here seems well stocked to me. I go there occasionally, but prices there are out of line with Wally World and other retailers..imo.

Mon, 05/19/2014 - 17:46 | 4775127 explosivo
explosivo's picture

This is what Venture looked like before it went under. 

Mon, 05/19/2014 - 18:37 | 4775275 gdpetti
gdpetti's picture

This is what they all look like before they go under.

Maybe their online business is so unbelievably good that it is disrupting the supply chain?

Possible, yes. Probable, no.

It does remind me of almost the entire Western world.

We live in a psycho-zombie world. Without income, none can buy, but they can still look, but that doesn't seem too much fun these days either.

Mon, 05/19/2014 - 18:24 | 4775237 deeply indebted
deeply indebted's picture

I'm confused. Shouldn't they be channel stuffing??

Mon, 05/19/2014 - 18:45 | 4775293 Crazed Smoker
Crazed Smoker's picture

I live in Canada and frequent a target store in my city.   It looks like a WalMart and is stocked like a WalMart.  My daughter buys stuff there - oye.  Never seen an empty shelf before.   Not sure what these pics are really representative of. 

Mon, 05/19/2014 - 19:09 | 4775348 red_pill
red_pill's picture

Our target here in ND is always well stocked, and busy to boot. our city of 55,000 supports not one but two walmarts and a tatget, a Sears, JCP and a Macys. JCP, Sears and Macy's are struggling for customers, as is the whole mall they are in but are well stocked. Both walmarts and Target are busy. I prefer to not shop there, but they have driven off so many small stores that it's hard not too when you need a wide variety of items.

Mon, 05/19/2014 - 19:27 | 4775411 Took Red Pill
Took Red Pill's picture

As a former retail store manager, if my store EVER looked like that, I'd be fired in a heartbeat. They must be having trouble getting merchandise for some reason.

Mon, 05/19/2014 - 19:28 | 4775415 bentaxle
bentaxle's picture

Looks like someone is trying to deprive the sheeple of their sheeple shit!

Good job it's not in the US, there'd be shootings.

Mon, 05/19/2014 - 19:33 | 4775429 Kreditanstalt
Kreditanstalt's picture

I marked the Nanaimo (Vancouver Island) Target as "not going to last long" a year ago.  If it is still open today, it must be on its last legs. 

And it's not only shelving.  Not displays.  Not customer service.  Not location...though I noticed that the aisles were immensely WIDE and devoid of customers...and the merchandise was not cheap, being similar in price to Walmart.  Nor was the selection different from Walmart's...very similar.

Problem is: OVERCAPACITY IN RETAILING.  That's all.

Mon, 05/19/2014 - 19:36 | 4775443 Jam
Jam's picture

Maybe Target should get back to ammunition and tobacco products.

Mon, 05/19/2014 - 19:57 | 4775513 redwater
redwater's picture

Just got back from Target.

The best thing about Target are the hot cashiers in the tight, tan slacks and red polo shirts they have to wear.

Mon, 05/19/2014 - 20:13 | 4775557 p00k1e
p00k1e's picture

Often while in Wal-Mart I wonder if the female employees are ever propositioned.

Wal-Mart….  the perfect place to pimp hoes.  

Mon, 05/19/2014 - 20:32 | 4775623 I Write Code
I Write Code's picture

I expected much worse from your expose headline.  As others have said, it's not uncommon to find some empty shelves in American Target locations. It's not a good thing, but it happens.  I had to go to two stores this weekend to get a particular "beauty" item.  For that matter my local grocery often runs out of my favorite bottled water, because apparently the manufacturer (of water!) hasn't bought a prime position on the shelf and has last priority on restocking, IOW the manager hates it.

Target probably even more than Walmart is keeping retail alive in the US, it's not easy and it's not assured, and by all accounts there are major screwup in their Canadian logistics and also in understanding different Canadian costs and practices.  It may or may not work out.  How's that for insight!?!

ps - I see I have both Target and JCPenneys pop-up ads here on ZH as I read this!  God bless the Interwebs.

Mon, 05/19/2014 - 21:32 | 4775803 pupdog1
pupdog1's picture

My local Target was one of the first in their chain in the US.

When we were kids, going to Target was an event.

Now, the management are a bunch of feral bitches who are as anti-customer don't-give-a-shit as any company I have ever seen.

Fuck Target.

Mon, 05/19/2014 - 21:55 | 4775881 Aussiekiwi
Aussiekiwi's picture

Stop buying crap you don't need, your just supporting a corrupt system starve the beast.

Mon, 05/19/2014 - 22:20 | 4775974 Herdee
Herdee's picture

The Corporate strategy in Calgary and across Canada is to pay everyone minimum wages and hope for the best.Compared to WalMart the Target stores' prices are like Sears and no matter which one you go to it feels very empty of people all the time.All the excessive red colour everywhere gives you a feeling of grand cheapness but the prices are high.I've visited their stores only twice but never again.They suck and are out to lunch.

Mon, 05/19/2014 - 22:30 | 4776006 p00k1e
p00k1e's picture

PErhaps the empty stores are FEMA staging areas.

Mon, 05/19/2014 - 22:31 | 4776007 oncefired
oncefired's picture

Remove all the shelves and put a bunch of those cars just sitting around in there, probably better margin then making 75 cents on a barbie

Mon, 05/19/2014 - 22:35 | 4776016 anan7
anan7's picture

This story and pictures are from January 2014, right after the holidays when every store wants to be sold out and not carrying seasonal crap in inventory. 

Mon, 05/19/2014 - 23:53 | 4776233 Moccasin
Moccasin's picture

I live and work in Western Canada and Target stores are poorly stocked. The photos seem indicative of the stores I have visited in Manitoba, Saskatchewan and Alberta. Target is weak in a strong market, everyone complains about them, but they all have a Starbucks. Western Canada is near full employment with resources, it is booming compared to most anywhere else in North America, Target is not. Zellers was better.

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