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Why Target Canada made it difficult for US brands to foray into Canadian cities

Target exited Canada in 2015 after its poor performance, and since then other U.S. brands have had a hard time expanding to Canada. Even when some brands do venture out north, the anticipation and hype are a lot less than it was earlier.

Customers, who were disappointed when they visited Target Canada stores and had to deal with high prices and low stock, have since then seen many U.S. brands trying to make it big in Canada. However, not all of them gain the hype and anticipation that was given to big U.S. brands entering Canada in the early 2000s. The famous American chain Cheesecake Factory is making its Canadian debut soon. However, it hasn’t received the press and attention that a Target or Nordstrom got back in the day.

So why did Canadians who used to eagerly anticipate openings of U.S. restaurants now change their preferences? If experts are to be believed, it is because of the Target effect. They feel they are not taken seriously and could probably receive product or service, which is subpar compared to the company’s U.S. version. Other reasons are that their own Canadian companies are now hotter than they have been in a while.

Back when Target came in, there was expectation and hope, now people aren’t interested in anything that is already here unless it is a high end, one expert said. Target exiting Canada was a good thing for the company itself since it was heading down a black hole of bad investments.

So while some Canadians do hope their favourite U.S. companies will open up shop nearby, others are enjoying the other international brands in the market which aren’t from the U.S. Experts have even predicted that Canada would have a higher concentration of luxury department stores than the U.S.

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U.S. based retailers are now closing stores with some even having to declare bankruptcy. Meanwhile, new stores of various international brands are opening up in Canadian malls, making it easier for people to access the latest styles and higher-end fashion.

And as for food, American restaurant chain Cheesecake Factory will make its debut this fall at the Yorkdale Mall.