Why Does Target Canada Provide Higher Price?

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Over many years, Canadians are very willing to cross the border to shop at Target as it caters relatively lower prices and wide range of product selections. However, when Target opens its stores in Canada, savvy Canadian customers discover that Target Canada caters the higher product price than it in America. But why does Target Canada provide higher price? First reason: Higher labor costs. It is somewhat obvious that Target stores in Canada have not enough sufficient sale associates to help customers when they need. It is because Labor costs are much higher in Canada than in America. The lowest labor wage range in America is $7.25~$9.25 per hour; whereas, in Canada, lowest labor wage is $11 per hour. Also, comparing with America, Canadian…show more content…
Canadian companies inform employees about dismissal in advanced, and again it’s by law: according to Employment Standards Acts, “no employer shall terminate the employment of an employee who has been continuously employed for three months or more unless the employer (a) has given to the employee written notice of termination” in section 54 ( 19 ) and the notice of termination should be given one week before the termination, if employee’s period of employment is less than one year”; two weeks before, if employee’s period of employment is one year or more and fewer than three years (19). Even sometime employees can get severance pay from companies, only if the employees were employed by the employer for five years or more ( 20 ). But in America, under U.S. labor law, employee can be dismissed/fired by a company/employer for any reason without any warning (Shepherd, 2011). Overall, the process of dismissal in Canada favors employees and law protects employees more than America. Therefore, no wonder in Target Canada stores, there are fewer sale associates to help customers when they need. The level of customer service is much lower than in America Target

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