Moving North of the border.

"American companies are invading Canada's malls. Target is just the start. What comes next, and how it will forever change retail in both countries"

Many of the retailers now leaping the border contemplated the move for years, but were finally spurred to action by the weak U.S. economy. Limited American opportunities in the medium term mean Canadian retailers will likely see competition increase steadily over the next five years, as their American counterparts turn to globalization for growth. There was no real incentive for retailers to look beyond America's borders when its economy was thriving. The entire population of Canada is roughly the same as the population of California, points out retail consultant John C. Williams. While it makes sense for American companies to consider a Canadian move, a lot of U.S. companies, including Target, have been expanding in the States first. "Strategically, you've got to protect where you are before you start going somewhere you're not," Williams says. To put things into context, Target already has nearly 1,750 stores in the U.S., and it plans to add, at most, 200 stores in Canada. But as American retailers see few chances for expansion at home, Canada's comparatively strong economy makes a move north of the border all the more lucrative.


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