Takeaway From Brian McGough:
This is a snap of a poll we found on Canada's Globe and Mail site. Whether or not you believe in the validity of these straw polls, it’s hard to ignore the opinion of 10,000+ people. A quick note on the sample, we stress-tested the system to see if we could vote multiple times (which would therefore inflate the negative sentiment) - but, no dice. These results seem like they're for real.
It's particularly interesting that those who say they will miss Target in Canada totals 11%. Given that 11% of Canadian citizens had shopped at a Target in the US in the 12 months prior to Canada's opening it leads us to believe that a good chunk of the 11% who say they will miss TGT Canada were already established US shoppers.
To us this means that 1) Target Canada has yet to establish meaningful brand equity outside of its carry over customers from the US, and 2) customers missing Target in Canada is mostly a function of convenience.
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Editor's Note: This is a complimentary research excerpt from Hedgeye Retail sector head Brian McGough. Follow McGough on Twitter @HedgeyeRetail.