Target Canada: A $5.4 Billion Reminder That Market Research Isn’t Optional

Wonder why I am so persistant on doing the right research before entering new market? Well...let me tell you about Target and their disastrous entry into Canada.

In 2013, Target made its long‑anticipated leap into Canada. The move seemed destined for success: a beloved American brand, instant national presence through the acquisition of over 200 Zellers leases, and a rollout plan that would see 124 stores open in just one year. Canadians, many of whom had shopped at Target across the border, were eager to welcome the retailer.

On paper, it looked like a masterstroke in market expansion.

But the reality was very different. From opening day, customers were greeted by half‑empty shelves — the result of a supply chain that wasn’t ready for the scale or complexity of the Canadian market. Popular items were missing, while less desirable products piled up in back rooms.

To make matters worse, prices were 20–30% higher than in the U.S., shattering the expectation that Target would deliver the same value Canadians had experienced on cross‑border shopping trips.

The brand promise — affordable style — collapsed under the weight of these early mistakes.

Target’s aggressive rollout left no room to recover. With over 100 stores bleeding cash, there was no stronghold market to stabilize operations or rebuild trust. Less than two years after launch, Target announced it would close all 133 Canadian stores, laying off 17,600 employees and absorbing a staggering $5.4 billion loss. The speed that was meant to be their competitive advantage became the very thing that magnified their mistakes.

For companies eyeing new markets, Target Canada is a powerful reminder: brand awareness and capital are not enough. Success demands deep, on‑the‑ground research into consumer expectations, operational realities, and cultural nuances. It means piloting before scaling, aligning pricing with perceived value, and ensuring the fundamentals — supply chain, inventory, and customer experience — are flawless before chasing growth. In market expansion, skipping the homework doesn’t just cost you market share. It can cost you the market entirely.