Target, Walmart, and Starbucks Move into Canada and Mexico

Having mastered, and in some cases dominated, their markets in the U.S., three giants of American service and retail are looking to lock down the entire North American continent. The most recent Walmart-Canada surge builds on previous attempts at continental domination. Target and Starbucks have also undertaken expansion projects into Canada and Mexico in a bid to increase their representation abroad. While some efforts have been hugely successful, not all have paid off for these champions of capitalism.

Bentonville, Arkansas-based Walmart is no stranger to the international market but has only recently pushed for North American expansion up north with Walmart-Canada branches. When the mega-corporation finally made the move south of the border some years ago, its Walmart-Mexico stores were a near instant success. A Nexxt article reports the move soon turned into a public-relations disaster when word leaked that high-level executives at Walmart-Mexico had bribed Mexican officials. An investigation by Walmart headquarters revealed the bribes totaled more than $25 million and even worse, received headquarter approval.  

Walmart-Canada announced plans to expand its efforts in 2013 after news spread that its chief competitor Target had plans to open as many as 124 stores throughout the country. So far, Walmart-Canada has escaped allegations of bribery or corruption.

In Canada, department-store retailers are uncommon at the mass retail level, and consumers and small business owners are viewing the insurgence of low-price retailers with skepticism. Walmart-Canada sees the move by Target as shots across the bow and announced that it will be investing as much as $453 million in the construction of additional retail locations and at least 37 new superstores.

Starbucks Canada, the Canadian branch of the Starbucks Corporation, is a 25-year-old business and one of Starbucks' most profitable branches. In 2013, Starbucks Canada is set to embark on its largest Canadian expansion in tandem with Target. The plan is to roll out a new Starbucks outlet into each of the 124 Target stores opening across Canada. In addition, Canadian coffee lovers can expect another 26 standalone locations. So far the expansion has gone well for the coffee retailer, thanks in no small part to its new "Burgeoning Blonde" medium-roast coffee, crafted for a lighter Canadian palate.

The battle for North American retail supremacy between Walmart-Canada and Target has only just begun. Despite Target's lackluster performance at the beginning of the year, the company is pushing through with expansion in anticipation of bigger and better results as stores settle into the new consumer landscape. In Mexico, Walmart will continue to remain a dominant force in the retail industry, while Walmart-Canada tries to beat out Target. Last but not least, Starbucks has enjoyed unfettered success in Canada after unlocking the key to the Canadian palate and winning over converts.

photo courtesy of morgueFile.com