Target Relies on Team in India for Success with Canadian Expansion

Target (NYSE:TGT) is leaving no stone unturned to be successful in its first venture outside of the U.S. Its India office, which has around 2,500 people, will support its Canadian expansion plans. Other retailers like Tesco have also set up their offices in India for various back end and IT support related needs. According to reports, Target’s IT team based in India played a major role in revamping its online portal which now generates over $1 billion in sales. Target competes mainly with Wal-Mart (NYSE:WMT), Best Buy (NYSE:BBY), Macy’s (NYSE:M), Sears (NASDAQ:SHLD), and Costco (NASDAQ:COST).

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India Office to Play a Key Role

• Target’s India office will help with the design creation for stores and the layout of shelves. It will also assist with what the shelves should be stocked with and assist in setting a supply chain for the stores that are expected to commence operations from March 2013.
• The team will play a key role in determining how Target’s merchandising team interacts with vendors and books orders. It will provide business intelligence and marketing support services.

Likely to Face Tough Competition from Wal-Mart Canada

• Target will directly compete with Wal-Mart in Canada, which has a vast presence in Canada with over 330 stores. Recently, it allocated $750 million for a makeover of its existing stores in order to gear up for competition from Target stores in 2013.
• Target’s experience in Canada will play a crucial role in determining its other international expansion plans. It has been looking to enter in Mexico and Latin America.

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