Browse Tag: canada

Avison Young CEO: Canadian Commercial RE Boom At An End

As reported in Bloomberg Business, Toronto-based Avison Young’s CEO Mark E. Rose doesn’t see the global boom in commercial real estate continuing in Canada.  The indicators include rising vacancy rates in offices matched with new construction of 20 million sq. ft coming online across the country. Added to this is the recent move by the US Federal Reserve to raise borrowing costs plus the expectation that 2Q 2016 will see another hike by the central bank.

“We’re at a peak. I don’t think we’re getting any higher,” Mark E. Rose, chief executive officer of Toronto-based Avison Young, said in a phone interview. “The next step is down — it has to be,” Rose is quoted.

Continue Reading

Target Bugs Out Of Canada, Closes All 133 Stores

 

Laura Heller at Fierce Retail reports on Target’s foray north of the border ending painfully, including a $1.6 billion loss and the closure of 133 stores.  After purchasing nationwide retail chain Zellers and its 220 stores in 2011, it opened an additional 124 units in a single year. The aggressive expansion was not rewarded with expanded profits.

“With the benefit of hindsight, I wished we wouldn’t have opened up so many stores as we did at once,” Mark Schindele, president, Target Canada told theMinneaplis Star Tribune a couple of months ago. “We probably should have scaled back from what we did to get it moving in the right direction.”

Losses at Target Canada total roughly $1.6 billion to date, reported the Star Tribune.

“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,” said Brian Cornell, Target chairman and CEO. “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.”

Read the entire piece at Fierce Retail here.