Headlines

Target Could Shutter Canadian Operation

Decision to come next month

Published

9 years ago

January 6, 2015

Target Corp. (Minneapolis) is considering closing all 133 of its Canadian stores, according to The Street. Target Canada lost $2.1 billion between 2011 and the third quarter of 2014. The brand has been struggling against the perception of retail prices that are higher than its competitors such as Walmart and Loblaws. Addressing the problems of Target Canada was an immediate priority for new ceo Brian Cornell, who joined the company last August. Under Cornell’s direction, Target Canada attempted a holiday-season turnaround by stocking its shelves with 30,000 new items. The strategy’s effectiveness is still being analyzed.

Walmart (Bentonville, Ark.) is said to have an interest in acquiring all Target Canada locations as well as its Canadian distribution centers. Untethering itself from Canada would allow Target Corp. to focus on other projects, namely, the expansion of its smaller-format stores, CityTarget and TargetExpress. Cornell will reportedly decide whether to shutter Target Canada in mid-February after analyzing the division’s 2014 fourth-quarter earnings.

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