In Surprise Move Target Opens for Business Tuesday

Shoppers who are on the hunt for a bargain will get their first chance to see the aisles of a Target store in Canada starting Tuesday as the U.S. retailer opens its doors north of the border at three locations. The Ontario communities, all located west of Toronto, serve as testing grounds for a phased […]

Shoppers who are on the hunt for a bargain will get their first chance to see the aisles of a Target store in Canada starting Tuesday as the U.S. retailer opens its doors north of the border at three locations.

The Ontario communities, all located west of Toronto, serve as testing grounds for a phased rollout of the brand across much of the country later this year. The stores, located in Guelph, Fergus and Milton will open on Tuesday morning at 8 a.m. ET, in a somewhat low-key event designed to prevent any major fumbles.

Another 21 stores will open this month throughout Ontario, though dates haven’t been announced.

“We wanted flexibility to make sure we open when we are ready,” said Target Canada president Tony Fisher as he toured reporters through the Guelph store on Monday.

“It’s important that we can test and work out any of the bugs and kinks that we might find.”

Even Target employees were surprised that the Guelph location was opening so soon, the company said.

Delivering an element of surprise is apparently something that Target can afford, since so much anticipation has built up around its Canadian launch.

As the media tours went on inside the store, several curious consumers drifted by the front entrance in their cars trying to catch a glimpse – the windows are papered with the company’s trademark bull’s-eye logo.

“We have some, what I would say are very strong estimates of what our stores are gonna do, but right now they are estimates,” said Fisher, without offering any further details.

What Fisher does know for certain is that Target has been gaining momentum in the domestic marketplace. Awareness of the company’s brand jumped to 92% earlier this year, compared to about 70% in 2011 when Target first announced it would open stores in Canada, he said. The company launched its made-for-Canada marketing campaign during the Academy Awards Feb. 24.

A study from Brand Finance Canada released Monday found that Target’s brand strength in Canada is already considered nearly as valueable as domestic retailers like Lowlaws, Canadian Tire and Shoppers Drug Mart.

Those factors have sent a chill through the Canadian retail community, and many publicly traded companies have moved to cut costs across their operations in anticipation of the new challenges that Target could bring, especially if fellow U.S. retail Walmart starts to slash its prices to keep customers.

“One of the things that surprised me in this marketplace is there are some great retailers here, but you do have to go to multiple stores to be able to get what you’re looking for,” Fisher said.

“It really reinforced the fact that we do have a great position here.”

The Minneapolis-based retailer is expected to open between 125 and 135 locations in Canada in spaces that were once owned by Zellers.

After the Ontario rollout, Target will begin moving onto provinces in the West throughout the year and eventually into Quebec.

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