Target’s expansion into Canada has failed.
The U.S. giant has announced that it will close all its 133 stores in Canada and file for creditor protection. This also means that 17,600 employees will be losing their jobs. Target states that all employees will receive 16 weeks of compensation.
All 133 stores will have liquidation sales (similar to Zellers) to sell of remaining inventory.
“With the full support of Target Corporation’s Board of Directors, we have determined that it is in the best interest of our business and our shareholders to exit the Canadian market and focus on driving growth and building further momentum in our U.S. business,” said Target Corporation CEO Brian Cornell.
He also added that at its current state, Target Canada would not reach profitability until 2021.
Target has 4 locations in Winnipeg, including the huge store at Polo Park Plaza which just opened on October 17, 2014.