Target Canada asking suppliers for price break

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Target is asking suppliers of its Canadian stores for a cost break.

It’s to help turn around its money-losing operations in this country. Next March Target will set up a business development fund in Canada by collecting “an incremental 2 per cent accrual against receipts at cost” from vendors.

Since Target’s expansion to Canada last year, shoppers have complained of empty shelves and higher prices compared to U.S. stores. In its first year, Target Canada posted an operating loss of almost a billion dollars.

In the video above, Marvin Ryder from the DeGroote School of Business explains it’s not uncommon for retailers to ask suppliers to reduce prices.