TORONTO - Target Corp. has yet to open a store in Canada, but the retailer can already count Laurel MacLeod as a loyal customer.
At least once a year, the 28-year-old editorial consultant will drive two hours from her home in Toronto just to shop at a Target store in Buffalo, N.Y. And when she can't make the trip, she asks her mother in Illinois to scoop up merchandise.
"I like Target's design aesthetic," MacLeod said. "There's nothing like that here."
MacLeod is one of thousands of Canadians already quite fond of the Minneapolis-based retailer. And that will be a huge advantage for Target as it embarks on its first major push outside the United States. Canadians familiar with Target say they want the same things they would find at an American store: wide aisles, discount prices, and fashion-forward clothing and home decor.
But the retailer must also attract Canadians who want to see their country reflected in Target stores. "If we came up to Canada and didn't offer ketchup-flavored potato chips, then we would have looked like we didn't know what we are doing," said Target Canada president Tony Fisher. "We have to understand local preferences of local markets and adapt merchandising strategies."
So far, Target has hooked up with Roots Outfitters, a well-known Canadian retailer, to create a limited-edition line of clothing that runs from March to June. The company also will stock more cold-weather gear and appliances like rice cookers, a nod to Canada's ethnic diversity. Target officials say they need to convince Canadian shoppers that they are still getting great value even though it will charge more on some products than it does in America, as is common for U.S. retailers operating in Canada.
Target also faces plenty of competition from such Canadian stalwarts as Hudson's Bay Co., Rona Inc. and Canadian Tire Corp., which will fight to keep their customers. Hudson's Bay has a long history in Canada, dating back to the 17th century when King Charles I of England granted the fur-trading business a royal charter. The firm now operates several department store chains like Zellers, the Bay and Home Outfitters.
Canadian Tire, which sells automotive and sporting goods, also enjoys a strong relationship with consumers, with a staggering 9 out of 10 Canadians visiting the retailer at least once a year and four out of 10 shoppers frequenting the stores once a month, said Toronto-based retail consultant Doug Stephens.