Thursday 28 August 2014

what is the target?



I remember the exact moment I decided I was OK with paying more.  Prices at Payless had slowly crept up.  $29.99 became $34.99, until eventually it became $44.99.  It was the same day I found a pair of Alfred Sung heels on sale for $46.99.  Sure they’re a licensed line meant exactly for me, a mall shopper willing to pay up to $100 for a pair of shoes, but more likely to purchase them if they’re under $50.  And suddenly the smell of pleather and glue had lost its luster.  If you’re wondering how I could be talking about prices increasing at Payless, remember the all encompassing raison d’etre, ‘because Canada.’ 

After years of anticipation, Payless had finally made a run at the border.  Our, now seemingly innocent, dreams of having fun, inexpensive, trendy shoes was about to be realized.  Remember this is before Winners, the Canadian version of TJ Maxx had really impacted the market.  Department stores were slowly dying off and H&M wasn’t even a thought.  We loved it.  In fact I still have some of those early purchases.  The quality was OK, not practically paper and prone to dry rot, as it would later become; and picking up a fun pair of shoes you knew would only last a season for under $30 was acceptable.

Fast forward through the Americanization of the local mall, to Target; another destination Canadians make an effort to visit when we’re in the ol’ US of A.  A wide variety of offerings of the low level mixed merchandise retailer, but I personally love to see what they might offer in fun accessories and make up we can’t get here at home.  Coupled with the closing of Zellers, the Canadian version of Wal-mart before, and for awhile, after, we had Wal-mart, and it seemed like the opportunity was golden. 

Before I start sounding off on what I think went wrong, and what I read went wrong, let me be clear that I am not really in this type of store’s target audience.  First and foremost because they lack urban locations, and short of the rare occasion, such as moving, I don’t really need enough of this type of merchandise to merit what is generally about a 90 minute round trip on the bus to visit these stores.  I rarely go to Wal-mart.  I hadn’t been in Zeller’s for years, and once Joe Fresh started selling what I tried to find inexpensively, i.e. pajama’s and workout gear, I really never went back.  I buy my vitamins at the drugstore and my cleaning stuffs at the grocery store, and I can’t think of any other items I might need a mixed merchandise merchant. 

But Target.  A friend and I went to a soft opening.  And it wasn’t great. 

Yes, the expectation was that the store would not be at full capacity.  That ‘things’ needed to be worked out, but racks and racks were empty.  Very little variation in both stock offerings and floor layout from Zeller’s, the former occupant.  And the worst bits, pricing not all that competitive when compared to other Canadian retailers and no online shopping. 

They claimed they were just starting out.  They hadn’t figure out inventory supply chains.  They were ironing out the wrinkles.  It would get better.

That was more than a year ago.

We’ve all seen the news.  ‘Lower success and financials than expected’. ‘Did not go a hoped’.  ‘Net losses overall, because Canada’.  And yet the issues of areas of the stores still without stock, another big one, the lack of items available in the US, not brought into Canada, for reasons unknown and not explained, the pricing still not competitive and still no online shopping.

Incidentally, while away recently in the US I was able to find both an urban Target, City Target, as well as preview my potential purchases, wait for it, online.  

The City Target on State Street in Chicago - where I mostly went to use the bathroom, and to go through THAT doorway.

Does Target have a chance in our home and native land?  Probably.  There’s a lot of money to invest and a lot of money already spent to pull up the stakes and admit defeat.  But attention needs to be paid to the consumer and their expectations.  Which, arguably, are now lowered, so how hard can it be to correct this misstep?  First off, if your main competition is Wal-mart, and you aren’t going to try to beat them on price, then you better offer something better, of more quality, or not available elsewhere.  

And if they want me as a customer?  Well City Target is a good step.  And so is online shopping.

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