Target leaves Canada
January 15, 2015
US retailer Target said Thursday it would completely withdraw from the Canadian market, just two years after a highly anticipated, but ultimately disastrous launch.
Target's Canadian subsidiary has had to file for creditor protection, and will close all of its 133 stores across the country, leaving 17,600 employees out of work.
"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 statement.
Unattractive pricing policy
Cornell said the group would instead focus on driving growth and building further momentum in its US business.
In the optimistic run-up to its foray north of the US border, Target had viewed Canada as an easy first step to expansion abroad, due to its proximity to its US operations and strong similarities in consumer tastes.
But the retailer disappointed customers, with store shelves half-stocked at its grand opening and uncompetitive pricing compared with its US stores. It also faced fierce competition from Costco, Wal-Mart and other US brands already established in Canada long before the arrival of the Minneapolis-based interloper.
As a result, the company was unable to achieve its Canadian sales targets.
hg/nz (Reuters, AFP)