ST Alpha - "Target had 133 stores in Canada and only needed a distribution model (and related inventory) to cover that limited number of stores" (Reading a Post)

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In response to "It sounds backwards to me. A chain store is going to rely on distribution. Why not leverage that into online sales from the get-go?" by Roger More

Target had 133 stores in Canada and only needed a distribution model (and related inventory) to cover that limited number of stores

Posted by ty97 Jan 16 '15, 05:42

Going all out with an on-line presence would have required a model that could support countrywide shipping and they would need to maintain inventory levels to cover demand (undoubtedly requiring a larger warehouse/distribution network/space).

I think it's logical to take to one step at a time. Set up shop, get to be well known, build a customer base, THEN take the next step (assuming, you know, 'build a customer base' does not fail miserably!)

Responses:

But if you're entering a new market with existing competitors and not meeting customer expectations... - Roger More Jan 16, 06:50
even if they didn't do shipping, just have their inventory on their site. Alot of complaints from people I know about it -- nm - Beaker Jan 16, 05:54 1
- But again, that's a heavy infrastructure expense to implement. - ty97 Jan 16, 05:56

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Target had 133 stores in Canada and only needed a distribution model (and related inventory) to cover that limited number of stores

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