Level5 study shows troubling drop for Target
November 22, 2013 | Eve Lazarus | Comments
A new study from Level5 Strategy Group shows Target Canada is experiencing a serious decline in consumer perception.
Six months ago, 57% of consumers surveyed by Level5 thought Target was “better” than other general retailers. According to the company’s latest BrandMap study, that number has now slipped to 24%. It puts Target on the same popularity level as the Sears brand, a retailer struggling with declining sales and closing stores (including its Toronto flagship location).
Ranking higher on the report were Walmart, Canadian Tire, Loblaws, Costco, Winners, The Bay and Home Depot.
Prior to its launch, Target was considered fashionable and edgy, but now seen as insincere, unreliable, out of date and superficial, said David Kincaid, managing partner and CEO of Level5, in a news release.
“Brand success lies in the value of a promise consistently kept,” said Kincaid. “This has been Target’s stumbling block, and it is a profound opportunity lost.”
Kincaid said that the lesson for U.S. retailers entering Canada is to stay American.
“The brand’s efforts to “Canadianize” fell flat,” he said. “Canadian flavour can be an addition to a retailer’s core value proposition, not a substitute.”