Print This Event Print This Event
Mar 18, 2015

Target Canada missed their Target


In 1881, native New Yorker George D. Dayton decides to explore the growing Midwest markets.
After years in banking and real estate, Dayton decides Minneapolis offers the strongest opportunities for growth. He purchases land on Nicollet Avenue and forms the Dayton Dry Goods Company–today, known as Target Corporation.

 Three years later, Target failed in a big way and missed their Target losing billions of dollars underestimating the complexity of the Canadian market.

Above is a view of the opening of a new Target store in Canada.

Any new opening attracts the attention mostly to the competition and obviously within that picture are people who fall into this category.
Nevertheless, some attraction is always recorded from the real customers who are visiting the store for curiosity.

We will talk about Target in a little while.

Before we do that we would like to go back into history and start by telling you who Zellers was since Target acquired Zellers.

Obviously, by going to Wikipedia you will read that Zellers was founded in 1931 by Mark P. Zeller, and was a major Canadian discount department retailer.
In 1978, Zellers became part of the Hudson’s Bay Company, and during the 1990s Zellers had approximately 350 stores across Canada.

Zellers was initially the kind of store that sold car parts, appliances, clothing, etc., etc, and very little food, with the exception of some candy and some chocolates.

Close to the end of the last decade, the Zellers man at the top died at a very young age, apparently, according to many, he was a very good businessman.

His premature death left a very big vacuum within the organization.

In a desperate move on the behalf of the organization to continue running the company, they decided to handpick the best men in Canada to assume the task.

One of the individuals they picked was a gentleman named David Mock who was employed for many years by the Weston Organization which includes No Frills, Zehrs, Fortinos, Mr. Grocer, Super Centres, Provigo, National Grocers, and, of course, Loblaws, among others. All these stores specialized in grocery meats and vegetables

David Mock’s experience within the food industry in Canada is the result of many of his years within the industry.

One should note that the Canadian food industry is a very complicated subject more so than any other part of the world, based on the fact that every country has its own eating habits and Canada is populated by many nationalities.

For instance, if you were in Ghana, Africa, the main dish is fou-fou. If you were in Greece, must know the olive oil in Italy the Lupini in India the SamosasCoconuts Mangoes from different parts of the world, Curry packages, Ackees the national fruit of Jamaica, Cow Foot and Cow CodTamales Arepas Tortillas Empanadas,However, when you finally try a slice of Bolani, you enter into a world of Asian cultures like the Greeks and the Persians, but Afghanistan has perfected the Bolani over the years. 
Firstly, the Russians with the KGB, and then the Americans with the FBI, CIA and have given different reasons for the invasion of this country, but the truth is they are trying to steal this exceptional Bolani recipe. And many many other Recipes that I have created over the years.

On the other hand, Canada is a multicultural country, and the food requirements are very diversified because the population is from every part of the world.
It is almost impossible to have one person understand all the aspects of the food industry.

The team of brilliant heads selected the best brains in the field in Canada, David Mock, Mark Foote, Robert Gimbel, Jim Papaefthimiou and Peter Wright and others to undertake the responsibility and introduce the food division into the Zellers organization.

Following this announcement, David Mock became the head of Zellers organization across Canada.

Mr. David Mock made the appointment at HBC head office and asked Spyros Peter Goudas if he was willing to accept the responsibility to organize the food division since he knew that Mr. Goudas was the authority of the multicultural society in Canada and he was the one who builds the ethnic food division of Weston Organization which includes No Frills, Zehrs, Fortinos, Mr. Grocer, Super Centres, Provigo, National Grocers, Red & White store and, of course, Loblaws, since the early 1970s.

Letters of Appreciations to Spyros Peter Goudas

Mr. Goudas (Spyros Peter Goudas) accepted the responsibility and arranged meetings with capable people and companies he knew over the years including Gilda Foods, Zi Zi Italian food, S & F specializing in European products, Young and Young Rick Tsang China, Eric Brunetta from International Solutions and many others.

Mr. Goudas arranged meetings with capable people and companies he knew over the years including Gilda Foods, Zi Zi, S & F specializing in European products, Young and Young, Eric Brunetta from  International Solutions and others.

Mr. Spyros Peter Goudas start advertising Zellers heavenly at the largest website in the world WWW.FLYERMALL.COM daily, weekly, monthly, in addition to the ethnic newspapers, radios, and televisions.

 

It was a combined effort and teamwork for all the above companies, including personnel like Rick Tsang, Robert Gimbel, Marc Tate, Jim Papaefthimiou, David Cassidy, Christina Cordivani, Gilles Larrivee (Director of Merchandising for Quebec), Eva Sturm, Ted Ritchie (Planogram Analyst) and many more.

Each of these individuals and companies had a clean record from the CFIA Canadian Food Inspection Agency with no food recalls and placed lots of effort to fulfill the obligations and responsibilities and made Zellers a key player in the food industry.

Here we can see Mr. Goudas Spyros Peter Goudas along with his team of professionals and sales Reps working around the clock in organizing the shelves at Zellers stores.

Mr. Goudas overlooking the Zellers selves to be perfect and display the appropriate products according to the nationality surrounding the store locations.

The work was dan after store hours 10 pm until the early hours of the morning to avoid the customer's traffic

Mr. Goudas in the center with His staff personnel.
As you can see are not teenagers bud experience people working for Mr. Spyros Peter Goudas for many years.

The selection of products was different from location to location.
This took many years of experience on behalf of Mr. Goudas

 

The skits assortments, the displays, and the retail prices were carefully studied and executed.

Sherri Borden Colley AMATEURISH article was meant to be a criticism.

Therefore, Sherri Borden Colley, Staff Reporter for the Chronicle Herald will not be receiving any awards or accolades for this article.

The underhand, amateurish tactics used by Sherri Borden Colley to promote her personal agenda, have obviously backfired.

Ms. Lotta is almost 7 feet tall. 

 

In 2011 Target organization after long investigations saw the improvement of the Zellers stores and decided to purchase the company hoping to penetrate the Canadian market.

In within the period of negotiation between the Zellers Head Offices and the Target people for the final touches of the transition, there was another area that was important at least for the Target Organization to ascertain that the existing Companies who supply the Zellers at the time will remain onboard and continue to supply the New Target concept.

These negotiations, of course, involved Mr. Spyros Peter Goudas
 A man for all seasonings Business Journal

Following several meetings with both Mr. Goudas and high ranked executives of Target, they had promised to him that if things go right in Canada, they will take the Goudas line of Products more than 1250 of them from all over the world in all Target stores across the United States since the had never seen something like them in the USA supermarkets.

The main issue was the fact that Mr. Goudas’ advanced Computerized Database System specifications geared at both the national and international food industry, had to be lowered in order to be paralleled with that of Target.

In addition, all products and their specifications including extractions and countries of origin had to be entered into the Target database system. 

Target‘s singled system only focused at the local American market only, and was heavily deficient in addressing the complex needs and wants of multinational consumers, whereas the Goudas System serviced a multitude of ethnicities and nationalities from all over the world.
In order to achieve this, Mr. Goudas allocated a lot of money in order to re-program its database and downgraded it to match Target’s System to be able to communicate with Target.

In order words, this is similar to sending an Oxford University Professor to teach a class of Kindergarten.     

Mr. Goudas spent time meeting with suppliers, developing the planogram, etc, etc. planning and finalizing these projects only to realize that after closing the deal at the Head Office level, the decision of Target Corporation not to carry any Mr. Goudas line of products. Instead of replacing them, with unappealing, and lousy Target private labels with a minimum variety and selection.

Even worse, they remove all the Goudas products from all the Zellers shelves that were under negotiation with the Target stores all over the country.

This was a tremendous and time-consuming undertaking which cost the Goudas organization millions of dollars.

The final outcome: Right from the start, that the media of all nationalities have spread the rumors as radio, television newspapers and magazines wrote several negatives articles on the issue and the general public did not support the Target concept.

On August 2014, Brian Cornell as the new Chairman and CEO of Target and During his tenure has shut down the Canadian presence known Target Canada (formerly owned by Zellers)

From Wikipedia, Brian Cornell has hired many outsiders to update the corporate culture. Brian Cornell occasionally visits Target stores and asks people specific questions about their shopping experiences.

Obviously, the public mentioned to you that they do not like the store because you don't provide them the food of their nationality.

Instead, of hiring unqualified outsiders for advice or ask guests for their opinion you did not go to the problem directly.

What you should have dan, make an appointment with M.Goudas at his office go down on your knees and ask for forgiveness on behalf of your organization and the previously unqualified brains.

For your information, you didn't have a food experience bad only soft drinks distribution who are not qualified as foods businesses. 


This was a disaster resulted in Target closing all stores and losing billions of dollars in a sort 3 years period. 

What an expensive lesson for a Company, with thoughtless and foolish decision makers!

Target ignored the abilities and capabilities of the above group and dismiss them including Mr. Goudas on closing the deal with Zellers.

Three years later, Target failed in a big way and missed their Target losing billions of dollars underestimating the complexity of the Canadian market.

The forecast of the Target existence was written on the wall prior to their plunge into the Canadian market and according to many, the question was and still is, how a big corporation could make an error of this magnitude.

We asked Mr. Goudas his thoughts on this:

I had already lost Millions investment in the project, in addition to the costly return of the products which had to be distributed to Food banks and various need organizations.

I am very happy (thrilled) that I was not a part of the target bankruptcy, expressed Mr. Goudas! because if I were a supplier at the time and if they had increased the product lines as they promised, I would now be facing 30 million bad debts in my balance sheet”.

Of course, this will set up an example that Target prematurely announces that they will be profitable in the year 2021.

Did they obtain this information from Pythia, the Greek oracle of Delphi, who was widely known for prophecies in ancient Greek history?

In the meantime, what will happen to the 17,000 employees in the stores?

Angella MacEwen, the senior economist at the Canadian Labour Congress, says it could take between six months to a year for the employees to find replacement work, particularly given the cyclical slowdown in the retail sector during the post-holiday season.

Target is pulling out of Canada. The Minneapolis based retailer announced Thursday morning it has filed for creditor’s protection with the Ontario Superior Court of Justice and with tears in his eyes, mentioned that personally this was a very difficult decision but it was the right decision for our company. The Target CEO Brian Cornell said in one of his statements.

Mr. Cornell, do you know what you said? Do you know what you did? Accept the job loss, thousands of suppliers will go into bankruptcy because of you.

It is something called a chain reaction, What will you do about them?

Another question, what about the real estate you are leaving behind?

Each store was big enough to facilitate the landing of a 747 jet airplane.

Who do you think is going to take over these locations?
Most retailers out there are having troubles themselves.

Mr. Target did you ever have a chance to go to the internet, YouTube, MyTube, HisTube and anybody else tube to see the damage that you did to us Canadians?

Please let us know how you plan to mend the pain and the wounds of the damages you have done to us.

The FlyerMall team.

Photo of Marc Tate Zellers 

The above photo is of Marc Tate.    Marc Tate, born in Ontario in 1970, has become a force to be reckoned with in the food  industry.   His business savvy began at the very early age of 10 when he began delivering newspapers, went on to landscaping.  He dabbled in finance, macromedia, publishing and finally found a niche in the sales industry.  After a career stint with the firm Ester and Young Canada. In 2003 he became the assistant to the Lead Buyer at the Hudson Bay Company.    With his drive, focus energy and enthusiasm, he was soon an Associate Category Manager and ultimately Category Manager for Ethnic Foods, Produce, Diary & Frozen Foods, among others for Zellers stores.

The above photo is of Marc Tate.  

Marc Tate, born in Ontario in 1970, has become a force to be reckoned with in the food industry. 

His business savvy began at the very early age of 10 when he began delivering newspapers, went on to landscaping. He dabbled in finance, Macromedia, publishing and finally found a niche in the sales industry.

After a career stint with the firm Ester and Young Canada.
In 2003 he became the assistant to the Lead Buyer at the Hudson Bay Company.  

With his drive, focus energy and enthusiasm, he was soon an Associate Category Manager and ultimately Category Manager for Ethnic Foods, Produce, Dairy & Frozen Foods, among others for Zellers stores.

Target Canada has seen its fair share of problems. They expanded very quickly – they launched their Canadian stores in March 2013 and already have 133 stores, their Canadian CEO stepped down, they lost almost $1 billion dollars in their Canadian expansion and customers constantly complained about empty shelves and poor customer service.

Last year, they tried to redeem themselves by sending a heartfelt apology to their Canadian shoppers. They also set to improve guest experience by offering price matching with their competitors, new products and promises of full shelves.
Unfortunately, it was not enough. 

Rumors about the closing started buzzing in the industry around May 2014 and this morning, Target announced they plan to discontinue all Target Canada Operations.

“When I joined Target, I promised our team and shareholders that I would take a hard look at our business and operations in an effort to improve our performance and transform our company.
After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021.

Personally, this was a very difficult decision, but it was the right decision for our company. With the full support of Target Corporation’s Board of Directors, we have determined that it is in the best interest of our business and our shareholders to exit the Canadian market and focus on driving growth and building further momentum in our U.S. business,” said Brian Cornell, Target Corporation Chairman and CEO said in a release.

The decision seems like the best, as Target Canada has forecasted a loss of $5.4 billion before tax in their fourth quarter for 2014.

Right now, Target Canada employs approximately 17,600 people. They are currently seeking the Court’s approval to voluntarily make cash contributions of $70 million into an employee trust – if approved, Target Canada-based employees will receive at least 16 weeks of compensation, including wages and benefits.

There are no final dates on when we can expect the Minneapolis-born retailer to exit Canada. All we know is that Target Canada stores will remain open during the liquidation process, so expect some major sales soon!
We have so many questions we need answers for!

Does this mean Zellers could be coming back? Only time will tell.

Are you shocked that Target Canada will close all locations?

Major sales during the liquidation process mean selling the supplier's goods without paying them.

----------------------------------------------------------------

CANADIAN BUSINESS

 

   THE LAST DAYS OF TARGET

The untold tale of Target Canada’s difficult birth, tough life, and brutal death

By Joe Castaldo Photographs by Johan Hallberg-Campbell

 

 

 

Print This Event Print This Event