Heard about the Target Canada Crisis? Here are 3 Things Startup Owners Should Learn from It!
In spring 2013, America’s second largest retailer, Target, opened chains in Canada. Just two years later, all 133 Target Canada stores are closing, putting about 18,000 people in the “unemployed” status. As experts are trying to figure out just what happened, we’re trying to learn from mistakes made by Target Canada.
3 Things Every Startup Should Learn from the Target Canada Crisis
Here are three things startups can learn from the way the retail giant handled things from the beginning:
Horrible Managerial and Communication Practices – Many called the Target Canada corporate heads “distant and disinterested overseers.” Higher ups didn’t seem to care about employee issues and concerns. So, they went unresolved, leading to unhappy workers and customer Startups need to put processes in place from the beginning to ensure employee satisfaction.
- Unable to Adapt – Here in the US, Target workers are known as “team members”, and are taught to always be “Resilient and Adaptable.” But, Target Canada management didn’t understand the concept, or simply didn’t care to follow it. So, shelves were constantly empty, selections were redundant and prices were too high. As a startup, be prepared to adapt to the ever-changing needs of your customer base at all times.
- “Taking on Too Much Too Fast” – Those were the words of Target’s chairman and CEO, Brian Cornell, in regards to why Target Canada failed. Target put up a $2 billion investment to open these 133 stores in Canada. And, they simply weren’t ready for the long-haul. Every startup owner dreams of building a big business. But, growing too quickly without adapting to the changes that come with that growth can be disastrous. Add in a lack of communication, especially at management level, and your startup just may fail too!
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