Since American retail giant Target announced that it will open 100 to 150 new stores in Canada, few Ottawans have taken note of the looming red-and-white logo coming north of the border.
But they should. Target can help Ottawa.
When corporate America comes to town, many small businesses tremble in fear of having their customers devoured by discount brands that they cannot hope to compete with.
Luckily for Ottawa, big business has been here for decades, in fact, Target can bring Ottawa what it really needs – competition.
Since the decline of the Zellers brand into what can be viewed as a second-tier department store, few have been able to compete with big box retailers Walmart and Giant Tiger.
Target Canada can inject a new sense of competition into the stagnant retail store market and push other retailers to improving both quality of service and price.
A similar phenomenon occurred when Lowes, an American home improvement store, came to Canada in 2008 and broke up the monopoly that Home Depot and, to some extent, Rona, had in the home improvement market.
When two American retailers clash on Canadian soil, it is Canadian consumers who benefit.
Currently, Target owns the lease of 189 former Zellers stores, eight of which are in the nation’s capital.
Of course, not all of these locations will become Target stores and some will be sold to competitors such as Walmart, but Target’s entry into Canada will shake up the retail market.
Take, for example, Target’s ownership of the lease to the Sparks Street Mall Zellers, which has had its home in Heritage Place since 1932.
Though Target has yet to confirm the location as one of the Target stores to open in 2013, the historic building is a different location from many of the other Hudson Bay Co. stores from which Target bought the lease.
It is a much smaller building then Target is used to and is located in a predominantly tourist and business district, not a big-box store plaza.
With this smaller location, Target could cater to the downtown audience that wants to get in and get out quickly.
Consumers would not have to go through the lengthy process that it takes to shop at a Walmart-size store.
Also, with Target recently signing a deal with Canadian food retailer Sobeys, Centretown residents would have an alternative to Hartman’s on Bank Street for fresh meat and produce.
In fact, Target could even benefit local businesses along Sparks Street, since having a grocery store at that location could bring in more regular foot traffic from around the community.
Of course, Target’s arrival in Ottawa will be a disappointment to some.
The same people who refuse to shop at Walmart probably won’t shop at Target either. But for those of us willing to shop with Target’s adorable bull terrier with looming over us, the store will be a welcome sight in Ottawa.