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.”