Target failing to impress customers in Canada
Forum Research survey comes after U.S. retailer's launch to fanfare in Canada 5 months ago
CBC News
Posted: Aug 19, 2013 9:57 AM ET
Last Updated: Aug 19, 2013 11:10 AM ET
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Target off the mark
U.S. retailer Target is failing to make a good first impression with shoppers in Canada, according to a new survey.
Just five months after launching to fanfare and high expectations, Target has fallen to last place among major retailers in customer satisfaction, according to a Forum Research survey.
Only 27 per cent of Target customers said they were "very satisfied" with their shopping experience, down from 32 per cent in the spring.
"It is interesting to see Target dropping the ball on customer satisfaction after the big entrance they made into the market," said Forum Research president Dr. Lorne Bozinoff.
Customer satisfaction rankings:
(per cent "very satisfied")
- Costco: 62%
- Wal-Mart: 40%
- Hudson's Bay: 40%
- Marshall's: 35%
- Winners: 35%
- Sears: 34%
- Holt Renfrew: 32%
- Target: 27%
Costco, a U.S.-based membership-only warehouse club, had the highest customer satisfaction, with 62 per cent of shoppers in the survey saying they were "very satisfied" with their shopping experience.
"Considering that nearly everyone who shops at Costco is satisfied with the store, they are the natural leaders," Bozinoff said.
Target reports its quarterly earnings on Wednesday, and the results from its new Canadian operations will be key to earnings, according to a note from JP Morgan analyst Christopher Horvers.
According to the survey, Target scored a 2.7 customer satisfaction ranking, below Costco's industry-leading 3.5, and an overall average of 3.2.
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