Target Canada to close all 133 stores

Target Canada isn’t profitable and wouldn’t be until 2021

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(The Canadian Press)

(The Canadian Press)

U.S. retailer Target has announced it is going to close all 133 of its Canadian locations.

“After a thorough review of our Canadian performance and careful consideration of the implications of all options,” said CEO Brian Cornell in a press release this morning, “we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021.”

Target Canada stores will remain open during the liquidation process.

The company currently employs 17,600 people in Canada. As part of its wind-down, Target says it will place $70 million into a trust to provide for a minimum of 16 weeks of pay and benefits for laid-off employees.

Further text from Target’s press release:

“When I joined Target, I promised our team and shareholders that I would take a hard look at our business and operations in an effort to improve our performance and transform our company. After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021. Personally, this was a very difficult decision, but it was the right decision for our company. With the full support of Target Corporation’s Board of Directors, we have determined that it is in the best interest of our business and our shareholders to exit the Canadian market and focus on driving growth and building further momentum in our U.S. business,” said Brian Cornell, Target Corporation Chairman and CEO.

Check Canadian Business for updates throughout the day.

One comment on “Target Canada to close all 133 stores

  1. How on earth did they get into such a mess and so quickly? I have been to Target in the US but did not find it a wondrous experience – price wise or selection wise. The Canadian stores were more disappointing because there was so little stock. The men’s clothing section in the store closest to me has one or two aisles with little selection. I don’t know what the difference is between Walmart and Target but Walmart seems to have found a good business plan. Did Target execs think that Canadians wouldn’t notice that what we were given was not what we are used to in the US. Why did they think that we would be satisfied with less than what we were used to – even it was only part of a holiday to the US.

    I didn’t buy much at Target so losing them is not a big deal for me. However, for the thousands of Canadians who will lose their jobs it is not good.

    Reply

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