Target has announced they will be closing their stores in Canada.
“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.”
The 133 stores employed approximately 17,600 employees. Target has began seeking the Court’s approval to create an Employee Trust of C$70 million (~US$59 million). This trust would provide nearly every employee with a minimum of 16 weeks of compensation, including benefits and wages for employees.
Brian Cornell, the CEO and Chairman of Target Corporation stated:
“The Target Canada team has worked tirelessly to improve the fundamentals, fix operations and build a deeper relationship with our guests… we did not see the required step-change ”
Target expects some losses from the discontinuation, but they believe that focusing on their operations in the US will be far more beneficial and profitable than maintaining the operation in Canada.
Target stores in Canada will remain open until liquidation and the wind-down process has completed. Target has taken precautions and are prepared to help those that the shutdown will affect.
In light of these revelations, do you feel that the decision by Target was the correct way to go? Leave your opinions down below.
I honestly feel that the decision may have been the best idea, however they could have perhaps created smaller, convenience styled-stores. Not only are the costs more manageable, but inventory and possible losses are much easier to make up.