Target's Canadian Merchandise Will be More Expensive Than in America


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Target's Canadian stores will have merchandise, on average, more expensive than that in American locations. It's an unfortunate reality of a geographically large country with relatively high import tariffs and a comparatively small population. 

A study by Field Agent Canada for The Globe and Mail shows Walmart's Canadian prices are, on average, 23% higher in Canada than in the US. In the US, Walmart's prices are only about 0.5% less than Target. We can likely expect Target's prices to be similarly higher when it opens its first Canadian stores in March. 

Target's answer to higher Canadian prices is that it will be a 'unique experience', offering differentiated merchandise (including designer collaborations) and experiential interiors that will keep Canadians coming back. Time will tell if this will be successful. 

So Canada: Will you shop at Canadian Target stores if their prices, on average, will be 23% higher than in the US? Or will you cross-border shop (or shop online) for bargains? 

[Online Source - Globe & Mail]

Target Canada website: www.target.ca

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