They’re also taking a serious hit from their expansion into Canada, which is failing in a huge way. Their pricing can’t compete with Walmart and their product selection isn’t even in the same league as Loblaws and Canadian Tire.
I work at one of the Target stores in Canada and a lot of the difficulty simply has to do with that Target thought that it could simply transfer its stores into Canada and continue doing business.
It didn’t take into account that Canada is a different country, with a different culture. It will overcome this sticky point in due time.
Wal-mart went through the same sort of adjustment when it first came to Canada. It thought it would bowl through all the big retailers here, but it found that was like hitting a wall.