Target pulls plug on Canadian stores
Poor sales over the holiday shopping season was the final straw for Target Canada.
The U.S. department store said Thursday it plans to end all operations in Canada.
This move will liquidate 133 stores and put more than 17,000 people out of a job.
Target’s money-losing Canadian stores failed to profit during what experts were calling a make-or-break Christmas for the retailer.
“We did not see the required step-change in our holiday performance,” Brian Cornell, Target’s chief executive, said in a press release. “We were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021,” Cornell said. “Personally, this was a very difficult decision, but it was the right decision for our company.”
The chain said it plans to provide at least 16 weeks compensation to all workers affected, with $70 million set aside.
Target stores will remain open during liquidation.
The retailer launched in Canada in March 2013, rolling out 133 stores across the country.
Target missed the target! They’re pulling out of Canada, killing 17,000 jobs. Why did this chain fail in the Great White North?