PROFIT’s survey of retail pros suggests many kinds of business have much to gain from the planned expansion by U.S. retail giant Target into Canada:
CEO, Karabus Management Retail Consultants
“This is the biggest seismic shift in Canadian retail since Wal-Mart bought Woolco. Target is going to end up being 50% to 100% bigger than Zellers was. There’s going to be rejuvenation of some retail strips and malls that have been struggling, especially in smaller towns, which will mean tremendous opportunities for adjacent retailers. I see the landlords of secondary malls being able to entice other larger retailers once they get a Target, which will bring new life into the malls for other tenants.”
Partner, InterStratics Consultants Inc.
“Target plans to do more than 100 store renovations by 2013, spending $10 million per store. That will create huge opportunities for renovation companies. Target has indicated it will be looking at new locations, too, which would have a large impact on the construction industry. When Wal-Mart came into Canada, it partnered with a small development firm, which has since grown to become SmartCentres. Wal-Mart catapulted that company into the big time. That could happen with Target, too.”
President & CEO, Retail Council of Canada
“There are opportunities for SMEs, specifically in trades such as construction and store design. Target has announced it will be spending over $1 billion in renovating, rebuilding and retrofitting. That will accelerate the capital-spending plans of the other major retailers and shopping-centre operators to stay competitive. Target’s arrival also impacts areas such as warehousing, transportation, logistics, marketing and advertising. All those sectors will be positively affected.”