A Lesson in Broken Systems

What Really Went Wrong with Target Canada: A Lesson in Broken Systems and Dirty Data

In 2013, Target made its biggest international leap ever — and by 2015, it was gone.
In just two years, the American retail giant opened 133 stores across Canada and then abruptly shut them all down, taking a $5.4 billion loss and laying off over 17,000 employees.

This wasn’t a failure of brand, demand, or ambition. It was a failure of operations — rooted in bad data, disconnected systems, and rushed processes.

Target’s Big Canadian Bet

When Target acquired the leases of 220 Zellers locations in Canada for $1.8 billion, expectations were sky-high. They aimed to:

- Open over 100 stores in under two years.
- Compete directly with Walmart and Canadian Tire.
- Achieve profitability by the end of 2014.

From the outside, it looked promising. But behind the scenes, systems were breaking before the stores even opened.

Where It Went Wrong: Data, Systems, and Supply Chain

Despite its massive budget, Target Canada couldn’t get the basics right.

1. Broken Data from Day One

Target used a custom SAP system for its Canadian launch — but the data feeding it was shockingly inaccurate.
A postmortem audit found that more than 70% of the product data in the system was incorrect: wrong dimensions, missing prices, duplicated SKUs, or misclassified items.

One example? A toothbrush was recorded with dimensions that made it the size of a pallet — so the system treated it like a piece of furniture. It never shipped to stores because it was considered 'too large' to stock.

These errors weren’t just inconvenient — they broke the entire flow of the supply chain.

2. Disconnected Systems, No “Source of Truth”

Target Canada’s supply chain, warehouse, and point-of-sale systems didn’t talk to each other. Inventory data was inconsistent across platforms, making it impossible to know what was actually in stock.

A former VP famously said:
“We never had a single source of truth. Every system told a different story.”

As a result:
- Products were overstocked in warehouses but understocked in stores.
- Shoppers found half-empty shelves in brand-new stores.
- Store employees relied on paper-based workarounds.

This eroded trust fast. Customers who walked in once rarely came back.

3. Aggressive Timelines, Rushed Launch

Instead of phasing the rollout and fixing the issues, Target pushed ahead — opening over 100 stores in one year. That meant no time to test, no time to clean data, and no time to adjust systems.

The result?
- Broken pricing at checkout.
- Poor in-store availability.
- A public backlash that killed loyalty before it started.

The Fallout

By early 2015, the entire Canadian operation was shut down. Here’s what Target lost:
- $5.4 billion in total losses
- 133 stores closed
- 17,600 employees laid off
- A major blow to its brand credibility, even in the U.S.

What’s worse — none of the problems were due to customer demand. Canadians wanted Target to succeed. They just couldn’t trust it.

What Every Business Can Learn

Target’s failure wasn’t just a retail misstep — it’s a blueprint for what not to do in any scaling business, especially in retail, logistics, or tech.

Key Lessons:
- Data before deployment: Dirty data creates broken workflows. Validate everything first.
- Integrated systems = operational visibility: If your tools don’t talk, your teams won’t either.
- Start small, then scale: Fast launches without feedback loops are almost guaranteed to fail.
- Always have a single source of truth: Whether it's for inventory, clients, or tasks — trust in data is non-negotiable.

How to Avoid This in Your Own Business

Target’s failure wasn’t about ambition. It was about not getting the basics right — clean data, connected systems, and tested processes.

That’s where smart operations make all the difference:
- Before investing in software, map out what your teams actually do every day.
- Clean your data — not just the numbers, but the categories, logic, and relationships behind them.
- Build one reliable system of record — even if it starts simple — and make sure everyone works from it.

Growing businesses don’t need massive platforms. They need connected tools, clear processes, and data they can trust.

If you’re not sure where to start — even a single shared system for client info, sales, and operations can save months of confusion down the line.

That’s the difference between scaling with confidence, and scaling into chaos.