Target’s prices in Canada are going to be higher than in the U.S.
Target’s prices in Canada are going to be higher than in the U.S.
Bad news: when Target’s first wave of Canadian locations opens this spring, the merchandise will be more expensive than in U.S. stores. Target Canada president Tony Fisher told the Globe and Mail that prices will be set to stay competitive with other Canadian retailers, not U.S. ones. We’re not all that surprised; Canada’s steeper tariffs and fewer economies of scale mean local shoppers are used to paying a little more than Americans. That said, Target is already well-known as a discount store to legions of cross-border shoppers who’ve been exploiting the loonie’s near-parity with the U.S. dollar for years—which means they’ll likely get angry in a hurry once they notice discrepancies. Just ask J.Crew. [Globe and Mail]
![](http://www.facebook.com/sharer.php?u=https://torontolife.com/style/target-higher-canadian-prices/&title=Target’s prices in Canada are going to be higher than in the U.S.&picture=https://torontolife.com/wp-content/uploads/2013/01/target-sneak-peek-624x393.jpg&description=[caption id="attachment_186924" align="aligncenter" width="656"] A nearly-finished Target Canada store (Image: Facebook)[/caption]
Bad news: when Target’s first wave of Canadian locations opens this spring, the merchandise will be more expensive than in U.S. stores. Target Canada president Tony Fisher told the Globe and Mail that prices will be set to stay competitive with other Canadian retailers, not U.S. ones. We’re not all that surprised; Canada’s steeper tariffs and fewer economies of scale mean local shoppers are used to paying a little more than Americans. That said, Target is already well-known as a discount store to legions of cross-border shoppers who’ve been exploiting the loonie’s near-parity with the U.S. dollar for years—which means they’ll likely get angry in a hurry once they notice discrepancies. Just ask J.Crew. [Globe and Mail]){kind=link}
I will still shop in the states. All the stores that have come here and are coming here are too expensive. I will stick to my cross boarder shopping. Its well worth it!
Canadians will be angry when they don’t get the same selection of stuff at Target Canada as U.S. Target stores.
U.S. stores that come to Canada see Canadians as pigeons ready to be plucked of their money.
Target Canada isn’t taking over the Zellers store in Lethbridge,Alberta because Target know the smaller population of Southern Alberta won’t shop at Target Canada when they can easily shop in Target stores in the U.S. Why would they shop at a store with higher prices and no selection when they don’t gave to.
We can show what they think of Target when they open look around and walk out without buying anything and then don’t shop there until they lower the prices and give us more selection.
its not about parity genius….its about executing a pricing strategy that is competitive to the market they are in. Also, the VOLUME is MUCH lower in Canada…about a 10th of the US volume. Packaging and safety requirements for most products are DIFFERENT in Canada. Most cost associated with production = higher costs to ship into Canada. read a book.
good lord…read a book. Target pricing will align to Walmart Canada.
We shop Tiger Direct and RONA here at home in CANADA. Local American stores in Canada or cross-border – all you people deserve to get what you pay for. CRAP profiting THEM not Canada. I urge you all to emigrate to the U.S. IMHO you’re all enemies of Canada we need to get rid of. – if they’ll have you, which they probably won’t.
We should expect and get better than same old stuff.
That makes sense for this example of “target” but with many things that are manufactured in Canada, or right here in the gta, like Ford and Honda we STILL pay more than the us, and it remains puzzling, even to economists.
Corporate tax rates are significantly lower in Canada. Pricing is determined by how much the market is willing to bear.
Um, Steve? Tiger Direct is owned by Systemax. Based in Florida.