Major metropolitan areas are making an effort to distance themselves from the traditional food supply chain. Cities, dreaming of achieving food independence from the farms that surround them, are increasingly turning to vertical farming projects that grow food in urban settings. Thanks to giant advances in green engineering and sustainable agricultural technologies, these vertical farms are gaining industrial scale efficiency.
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.”