Target Stores Shutting Down Operations In Canada
Target has announced that they are discontinuing operations in the Canada market and will close 133 stores. This decision was made based on a huge loss in the billions. The decision was made by company officials because they ultimately could not justify the investment with just the "hope" that the stores would make money.
In an article on Fortune.com, CEO of Target Brian Cornell spoke on the decision.
'Personally, this was a very difficult decision, but it was the right decision for our company,' said CEO Brian Cornell. In fact, Cornell said the company was unable to see a realistic scenario that would have gotten Target Canada to profitability until 'at least 2021.'
I would've thought Target and Canada would be the perfect match. The nation's colors and the retail giant's are the same and Target has been very lucrative in America. Ultimately, I just feel bad for the approximately 17,600 people that will lose their jobs. According to the same Fortune.com article,
The stores will remain open during the retailer’s liquidation process. As a result of the move, Target is expected to report about $5.4 billion of pre-tax losses on discontinued operations for the fourth quarter of 2014.
Luckily, we will still have the option to go to a Target store here in the states.