Target Canada to close all 133 stores

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.

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