Posted on 01/15/2015 6:18:02 AM PST by golux
Target says it plans to discontinue all operations in Canada and seek protection from creditors, less than two years after opening to much fanfare.
In a release early Thursday, the U.S. retail chain said it will close all its locations in Canada. There are 133 stores across the country with about 17,600 employees.
The company launched in Canada in the spring of 2013.
But after high expectations, the chain failed to deliver as customers faced higher-than-expected prices, and empty shelves as the retailer had problems with its distribution chain.
Executives repeatedly promised they would get it right, but ultimately decided to pull the plug.
"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," CEO Brian Cornell said in a release Thursday, explaining the justification for the shutdown.
(Excerpt) Read more at cbc.ca ...
I was under the impression that TArget had a financial interest in The Bay.
I was mistaken.
“But a lot of them are smarmy arrogant dweebs who look down their collective moocher noses at us’
Canadians have lectured me about their wonderful national (really, provincial) health system while admitting they or family members have been occasional “medical tourists” to the US when they needed any procedure deemed to be elective or if the wait for surgery was going to be unacceptable.
How long did she have you fooled? ;-)
It’s not Americans themselves we don’t like, it’s overbearing, rude, condescending, brash obnoxious boors we have some issues with.
We do some things a bit differently up here, and we are quite aware that “that’s not how we do it in the states”. There are reasons that things are done differently here, or in Appalachia, or California, or Maine, or Texas, or wherever: It’s called REGIONAL DIFFERENCES.
Our culture is different from yours in a few ways. We know this, and don’t care for our ways to be denigrated and insulted simply because it’s not the way ‘Merkinz’ do it.
I don't disagree with anything you've said. I just find it hard to understand how a company like Target could misjudge the Canadian market so badly. Target has been hugely successful in the U.S. market for decades, with thousands of stores and billions in sales, so it's not like they're some start-up business with little experience in retailing. You'd think they would have done sufficient due diligence before entering the Canadian market in order to avoid or minimize the obstacles you've identified in your narrative. This is no small misstep. Some senior management heads should roll over this epic failure.
Odd. I could’ve sworn I’d shopped in Target in Canada before 2013. From 2007-2012, I visited Canada just yearly.
It would be wonderful should they close all stores in the U. S. too!
The good news is that they ARE invading! They bought out Burger King a few months ago (which the news reported as Burger King fleeing US taxes). They’re currently all over Michigan, Ohio, Maine, Western NY and Manhattan.
... with scattered locations in Virginia, Maryland, Delaware, and Pennsylvania. I think they’re smart to gradually march across the U.S.
With Target opening up just 2 yrs ago, it’s amazing that the financial projections would change so drastically in such a short period of time.
Makes you wonder if there was some over-riding agenda that started the program.
I know at GM, they bought Saab because a top executive had a love affair with a sensuous Swede. The business case made no sense.
Don’t hold back /grin
verrrrrry interesting
folks here whine about everything at walmart being from China
did you by chance get a feeling for the global scope of Walmart vendors?
How insane is it that Target made such a HUGE gaffe? It’s not so much that they entered and failed but after only two years? I can’t imagine how bad it was to not even trying to see it through for at least 5-7 years. It’s just stunning.
“did you by chance get a feeling for the global scope of Walmart vendors?”
Actually, yes. Wal-Mart was compliant with several trade treaties that dictated they’d buy from tiny island nations. In many cases they were the only source of income. I had no idea there were several countries so small they’d make my home town look big. Wal-Mart was looking forward to dealing with suppliers who had more reliable shipping when the treaty lapsed. Some of these islands had a ship visit once every six months. By the time the products got to the stores they were out of style or obsolete. But, much of their stuff came from China. They were diversifying to newly developed outlets in other low cost producers.
now that is interesting, real interesting
Walmart has taken on Amazon........ a battle of titans
Since Amazon is a loser, the profitable Walmart might be eating amazon’s lunch
Typical and predictable Canadian defensiveness, insecurity, presumptuousness, finger-pointing, and condescension. Thank you for telling me what ‘things are called,’ about the culture I know like the back of my hand and how worldly you are. I can continue this conversation in any of five languages including the french you probably despise. Can you?
You merely proved my point, mon ammi. Va au diable, cochon.
TYPO: ami.
That was part of the problem. Target didn’t just go into the market slowly like a lot of other retail I chains would have done. Instead, they bought out the leases on a bunch of Zellers locations for something like $1.8 billion. At that point they really had no choice but to get into the market quickly, since it didn’t make sense to leave all that space vacant.
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