Target Finalizing Plans For Canadian Launch

Target Corp. is firming up its plans for its much anticipated Canadian debut, setting up three distribution centres here and refining its strategy to include the sale of fresh food at some locations.

The move into the food market wasn’t a certainty when the Minneapolis-based retailer made its expansion announcement earlier this year, and it puts Canadian grocery chains under increased competitive pressure at a time when they are already battling an encroachment by Wal-Mart Canada Corp. into that space.

The grocery business is huge in Canada, accounting for $111.8-billion, or 38 per cent, of the $294.3-billion in non-automotive retail sales in 2010, according to Colliers International. Target will steal away some of that business from incumbents, said Neil Stern, senior partner at retail consultancy McMillan Doolittle in Chicago.

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