Sandy Skrovan

Target may have been knocked down by a huge holiday season data breach last year, but its most recent quarterly earnings report and continuing replacement of top management show the retailer has other, bigger problems to address. Target's Canadian expansion has suffered from poorly managed inventory planning and a lack of understanding of the Canadian market. Meanwhile, merchandise even in U.S. stores has lost its gotta-have-it quality, and foot traffic had been slowly declining even before the breach happened. "They're behind the curve right now," says Sandy Skrovan, U.S. research director for Planet Retail, a retail research and advisory firm.