Now that American retailers have landed in Canada, prepare for the fireworks as stores launch massive promotions and deep discounts in an attempt to draw shoppers.
The arrival of Target and Marshalls and the expansion of Walmart hasn’t exactly revolutionized shopping, but it has laid the foundation for what industry watchers say will be a bigger fight for marketshare next year.
“We can expect to see some very desperate retailers,” said Brynn Winegard, a marketing expert at Winegard and Company.
“A lot of organizations will be vying for the same amount of consumer dollars.”
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For shoppers, that could mean significant price reductions, “Buy One, Get One Free” offers and similar promotions, while price matching and lax exchange rules set precedents.
And the spectacle won’t be limited to the big U.S. chains, as even domestic companies like Canadian Tire, Joe Fresh and Indigo will ramp up the spectacle around their own operations.
Much of this competition was supposed to play out earlier this year when Target first set foot in the country amid a level of hype rarely seen in the industry. But the retailer failed to impress consumers, especially those who had loyally crossed the border to shop at its U.S. Target locations.
A survey released by Level5, a brand strategy adviser, found that consumer sentiment for Target is on level with the struggling operations of Sears Canada.
Some customers likened Canada’s version to “Target Lite,” with lackluster prices and an atmosphere that, despite renovations, still had the feel of the Zellers outlets that occupied the same spaces for years before.
Date: November 25, 2013