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Canadian Push 7-25-14


Canadian retail Sales Up, But Weak Spots Abound
Statistics Canada's latest numbers show a 4.6% increase in total retail sales in May of 2014. Automotive & Related retail sales increased 6.9%, over double that for Food & Drug with a 3.2% increase, or Store Merchandise with a 3.4% increase. (Source

Is It Time for Target to Exit Canada? The American Blunder - Expert Discussion  The company has lost about a billion dollars since it began operating up north and, while it has pledged to do better, not everyone is convinced it will. In fact, Credit Suisse has gone so far as to suggest that Target's new CEO, whomever that turns out to be, should seriously consider getting out of the Canadian market altogether.  The Canada experience is symptomatic of what ailed Target overall: Too much caution, too slow to react, too much faith that the "brand" (versus good execution) would carry the day. Target needs to invest the resources to understand Canadian consumers or needs to leave the market. The Canadian market is not an extension of the U.S. market and is not homogeneous. First Target took horrible Zellers locations no one else wanted. It would appear the former CEO was overzealous and took available locations rather than build ground-up in new good locations. Zellers had run them into the ground so deep that Target will have to do better than a mediocre effort. Consumers associate those locations with negative experiences. They would need new and better locations, and we know that's not happening. Even if Target did have good locations, it would take several years to overcome their mistakes. Target needs to put on the brakes, regroup and go home. (Source

Alberta small and mid-sized businesses take big hit from fraud
One in four Alberta small and mid-sized businesses (SMEs) were hit or targeted by fraud artists last year. "It's credit card fraud. It's email phishing. It's theft of equipment. It means there's now another set of skills needed to protect the bottom line." Rank of retail among sectors reporting a fraud incident:1. Per cent of fraud aimed at credit, debit cards: 29. Per cent involving theft of equipment, inventory, other physical property: 27. Per cent of retail SMEs reporting a fraud incident: 49. (Source

Sears Canada, Reitmans & Indigo face battle for survival with some close to extinction  Foreign retailers have flooded the Canadian market in recent years opening hundreds of new stores and the pressure may be too much for some long-established retail names in Canada. Years of complacency, and a failure to innovate, could spell the end of many Canadian retail brands,” said Craig Patterson, a retail analyst and the founder of the Retail Insider. “Foreign players could obliterate our local retailers." (Source

Target Canada asks suppliers, vendors for a 2 percent cost break

World's largest fashion retailer to further expand Zara and Massimo Dutti in Canada 

Home Outfitters to be merged with Hudson's Bay's Home Division and a couple stores will close

Drug gang enforcer charged in June's Brentwood Mall shooting

Retail Fast Facts: June 2014
Total monthly retail sales changed by 6.1 per cent over the comparable month last year.
Total sales excluding food, automotive and gasoline changed by 4.6 per cent over the comparable month last year.  Read more (Source

Canadian Push 7-25-14
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