International Supermarket News

The US based discount retailer Target, which competes with Wal-Mart, has announced it is considering expanding into Canada, Mexico or South America over the next three to five years.

The move would be the company's first venture outside the United States, and would be the latest in a line of decisions by major Western retailers to move into potentially profitable growth markets in developing countries. Walmart and Carrefour have recently announced plans to expand their operations in Brazil, with German group Metro planning investments in Asia to offset falling sales in Europe, and Tesco pushing ahead with ambitious expansion plans in China and India.

“As we approach each of these growth opportunities, Target will apply the same rigorous financial discipline that we have applied historically, ensuring a returns-based approach and the prudent use of capital,” said Gregg Steinhafel, chairman, president and chief executive officer of Target. “We are excited about the growth potential for Target and believe we have the capital, talent, and right blend of discipline and innovation to deliver meaningful value to our guests and shareholders.”

Target has over 1,700 stores, and is a competitor with Wal-Mart, which operates 2,400 superstores. Target has seen sales growth fall behind its rival as Wal-Mart has focussed on marketing its low price groceries. Target is now shifting its marketing to highlight its own low price basics such as toilet paper and detergents.