Target, the US’ third-largest retailer, is aiming to set up shop in Canada next year. But to do that — it will be the first time in its history of over a century that Target will move out of its home in the US — its sights are set thousands of miles away on its technology centre in Bangalore.

From the southern Indian city, a 2,500-strong team, including architects, will draw a blueprint to help Target in Canada. They will work to create the design for the stores and the layout of shelves, decide what those shelves should be stocked with and assist in setting up a supply chain for the over 100 stores that will be opened.

With $68 billion in sales, Target spends nearly $1 billion on technology. “Our India team and their contribution will be critical for the Canada launch,” said Ken Kaiser, vice-president for corporate systems development who was instrumental in setting up the retailer’s India centre. The team in India will provide business intelligence by analysing the vast troves of data with the company and lend marketing support.

On the supply chain front, Bangalore will play a role in how Target’s merchandising team interacts with vendors and books orders.

The Minneapolis-based retailer does not have much room for error as it will be competing with the world’s largest retailer Walmart, which has been operating in Canada for close to two decades.

The Canada launch will also be a proof of concept for Target and help it set the foundation for entering other countries. Kaiser said Target’s recent revamp and launch of its e-commerce enabled website was done almost entirely out of Bangalore. Target generates $1 billion in revenue through online sales. Revamping of its internet portal for greater focus on online sales was a big bet on the Bangalore team, according to Kaiser. Till recently, Target used to sell its merchandise through Amazon.

“People said ‘It is so mission critical, can we do this in India?’ and we said, absolutely,” Kaiser observed. Target is now trying to replicate the success by revamping the software systems used in its retail pharmacy division –– the latest mandate for the Bangalore team.

Target set up its Bangalore centre seven years ago, drawn by the technical talent in the city. But what was meant to be a 250-400 member team focused entirely on technology, has now grown ten-fold and drives some of the key business and technology initiatives.

Source: economictimes.indiatimes.com