• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

3

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

3

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
RetailTarget

Target’s recipe for fixing Canada: Make it more like the U.S.

By
John Kell
John Kell
and
Phil Wahba
Phil Wahba
Down Arrow Button Icon
By
John Kell
John Kell
and
Phil Wahba
Phil Wahba
Down Arrow Button Icon
August 20, 2014, 1:53 PM ET
Target To Leave Some Stores Open To Midnight
SAN RAFAEL, CA - AUGUST 18: Shopping carts sit in front of a Target store on August 18, 2014 in San Rafael, California. Target announced plans to keep 900 of its stores open until 11pm or midnight in an effort to attract late night shoppers. Target stores now close at 10pm during the week and 9pm on Sundays. (Photo by Justin Sullivan/Getty Images)Photograph by Justin Sullivan—Getty Images

Target’s plan to turnaround a dismal start in Canada? Follow its U.S. playbook.

The retailer, which lowered its full-year profit forecast on Wednesday due to another quarter of anemic U.S. sales, gave investors more details about how it intends to turn around a troubled start to the company’s first move outside the U.S. Target has been criticized for doing a poor job replicating its American shopping experience in Canada, and executives are under pressure to accelerate sales and eventually justify the investment by building the business up so it can generate a profit.

“We only get one more chance [with the Canadian consumer],” Target’s Chief Financial Officer John Mulligan told the U.S. media on Wednesday. He admitted Target’s Canadian stores only offered a subset of merchandise that was sold in the U.S., angering shoppers when they were unable to find items they liked when shopping across the border.

What’s Target doing to fix that perception? It has signed exclusive collaborations with apparel and home decor maker Beaver Canoe and interior designer Sarah Richardson (similar to exclusive deals Target has signed in the U.S.). The company is also selling more exclusive cosmetics, household cleaner products, and other items for the home. The retailer will also angle to be more competitive on pricing, including the implementation of a price-match policy to better compete with online and local competitors in Canada.

Chief Merchandising Officer Kathy Tesija told analysts that of the 70,000 items stocked in a typical Canadian Target store today, about 30,000 will be new in time for the holiday season.

Those efforts highlight how Target’s new Chief Executive Brian Cornell is wasting no time in fixing the retailer’s woes in Canada. The former PepsiCo executive flew up to Canada during his first week on the job, as he aims to learn quickly about Target’s business there and improve sales in Canada in time for the key holiday season.

“Clearly we have to have a sense of urgency here,” Cornell said, when asked by an analyst about a timeline for a Canadian turnaround. “No one is happy with our current performance.”

Target, which opened stores in Canada in spring 2013 and operates 130 stores in that market, reported its operating loss widened to $204 million in the second quarter from $169 million a year ago, bringing the total to more than $1.4 billion in a year and a half. Gross profit margin was 18.4%, well below the 30.4% in the U.S. — the result of clearing excess inventory with heavy discounts. Overall, Canadian sales leapt 63% to $449 million.

Still, some say the retailer has its work cut out for it before any turnaround can be viewed as a success.

“They originally wanted to generate $6 billion in [annual] sales, but the stores aren’t productive enough to generate those results,” said Morningstar analyst Ken Perkins. Perkins said big changes are needed to justify Target’s continued investment in Canada. He has warned many of the company’s long-term targets for fiscal 2017 will be tough to achieve, especially given the sluggish start in Canada.

WATCH: The Q2 blues

About the Authors
By John KellContributing Writer and author of CIO Intelligence

John Kell is a contributing writer for Fortune and author of Fortune’s CIO Intelligence newsletter.

See full bioRight Arrow Button Icon
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

Matt Damon and Gary White.
EnvironmentWaters
Corporate America has been draining the world’s water. Matt Damon’s new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
13 hours ago
Chinese beauty brands flock to Southeast Asia as their first step in going global
RetailChina
Chinese beauty brands flock to Southeast Asia as their first step in going global
By Angelica AngJune 9, 2026
22 hours ago
John Furner, CEO, Walmart US
SuccessCost of living
Walmart CEO John Furner says even wealthy shoppers are now shopping at the discount grocery chain as high prices stretch six-figure earners
By Emma BurleighJune 8, 2026
1 day ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
SuccessThe Promotion Playbook
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
1 day ago
Gas over $4 looks like tipping point as Walmart customers don’t fill tanks, fast food loses cheapest diners
Retailgas prices
Gas over $4 looks like tipping point as Walmart customers don’t fill tanks, fast food loses cheapest diners
By Anne D'Innocenzio and The Associated PressJune 7, 2026
2 days ago
Allison Sheehan
SuccessJobs
This Gen Zer got reprimanded at Goldman for making cake videos as the ‘Investment Baker.’ She quit her job and is building a dessert empire
By Emma BurleighJune 7, 2026
3 days ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
1 day ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
1 day ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
10 hours ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
2 days ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
1 day ago
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
Success
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
By Preston ForeJune 7, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.