Thursday, January 15, 2015

Target Says "Au Revoir, Canada"

Target had such high hopes for its Canada venture back in 2011, when it took over leases of dozens of defunct Zellers stores. Many Canadians were looking forward to a local Target shopping experience, having been in U.S. Target stores during trips to the States.

Alas, after investing billions of dollars to outfit, stock, staff, and promote 133 stores from coast to coast, Canada couldn't overcome its severe supply-chain problems and get the merchandise pricing optimal for local shoppers while delivering ROI for the parent company. The CEO says:
We were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021.
So Target is saying goodbye to the northern markets when its Canada unit files for bankruptcy protection. By mid-2015, Target expects to have liquidated its Canadian holdings.

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