Strategy

Unemployment is a double-edged sword when it comes to the retail industry. The high single-digit rate in the United States means retailers can be more selective in their choice of hourly workers but the downside of fewer people working is less money sloshing around the economy for shoppers to spend. The situation in Canada is the opposite of the United States, and there are some major implications for Target.

MATTHEWS, N.C. — Family Dollar is expanding into California for the first time with the opening of four new stores in Ontario, Rialto, Riverside and Fontana. The company's aggressive growth plans also include 450 to 500 new stores to be opened in fiscal 2012.  

The Canada served up to Americans when they visit the country’s pavilion at Disney’s Epcot Center in Orlando is one of lumberjacks, lakes and abundant wildlife roaming virgin forests. While those elements exist, according to Jeff Doucette, a resident of Calgary in the Western province of Alberta and founder of the strategic consulting firm Sales Is Not Simple, the Canada portrayed at the Disney resort is far removed from the average Canadian’s daily existence and the marketplace Target will enter in 2013.

High on the list of things that can go wrong with Target’s entry into Canada is Quebec. The large province accounts for about 23% of the nation’s nearly 35 million residents, and because French is the official language, it means Target decision to acquire Zeller’s leases means it is essentially entering two international markets simultaneously.

Between now and March 2013, when the first Target stores open in Canada, there is a whole lot of heavy lifting to be done at the retailer’s new headquarters in Mississauga, Ontario.

Minneapolis -- Target announced it will open a CityTarget store in the Westwood Market Place, Westwood, Calif., in July 2012. The 98,000- sq.-ft. store will occupy a space that formerly housed Home Depot Expo.

The Westwood location is the second CityTarget store confirmed in the Los Angeles metropolitan area. Target previously announced that it would open a small-format, urban store at Figueroa and 7th in downtown Los Angeles in October 2012.

Philadelphia -- Urban Outfitters Inc.’s third-quarter profit fell 31% amid a decline in same-store sales and as merchandise markdowns continued to weigh on margins.

For the quarter ended Oct. 31, Urban Outfitters posted earnings of $50.7 million, down from $73.1 million in the year-ago period.

Gross margin narrowed to 35.4% from 41.1%, partly due to increased merchandise markdowns at Anthropologie and Urban Outfitters. Total inventories grew by $78 million.

Matthews, N.C. -- Family Dollar has entered the state of California, opening four stores, in Ontario, Rialto, Riverside and Fontana.

The discounter plans to open 450-500 new stores in fiscal 2012.

New York City -- Wal-Mart Stores has acquired Australian tech start-up Grabble for an undisclosed amount. Founded in January 2010, Grabble provides retailers a point-of-service app for purchases.

The discount giant will make the company part of its recently established Walmart Labs.

 

New York City -- Tiffany & Co. on Monday launched its first annual web-based Corporate Responsibility Report.

The website (tiffany.com/sustainability) details the jeweler’s 2010 sustainability performance, and provides insight into its standards and operations regarding the sourcing of precious materials, as well as includes information on eco-friendly packaging and catalogs.