The business model is fairly simple. Buy in bulk, leverage up with volume, and provide pricing at a discount to the market. When Target came to Canada, I was aghast at what they were asking of me at the checkout. They wanted more than what I was willing to provide for the transaction and I suspect I wasn’t the only one. I believe this one and only service related policy was central to the public backlash of Target here in Canada thereby prompting discomfort between consumers and management. The Americans seemed to have thought they could assume things of Canadians for which American discount shoppers were more easily complicit.
More recently, we see that there has been perception growing that Target through its silence may have changed course in regard to it policy around Diversity, Equity, and Inclusion (DEI). Sales are off and the stock is down some thirty plus percent since the start of 2025. Certainly, there are other attributions causing the price to fall but I’m reminded tonight that you cannot treat people poorly and expect their loyalty. Big box shoppers will be particularly acute to any change in DEI policy whether perceived or otherwise.
After my Target shopping experience in years back, I was little surprised that the company determined that they were mistaken in their quest to expand north. Indifferent management deaf to the culture of the customer will lose. This year, shareholders of Target unbeknownst to the inner dynamics of their company’s corporate culture have taken losses and have every good reason to be asking tough questions.