Target Shutting Down All Stores in Canada

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Target (TGT) has announced that it will be closing all of its stores in Canada.

target-canada-tgtTarget is pulling out of Canada after only being in the country for two years. The reason behind closing out its Canadian business is how badly it has performed in the country. The two-year endeavor has cost the company $2 billion and the closings will affect 133 stores, reports USA Today.

Issues that Target faced in Canada were varied and constant. The retailer had trouble with distribution, price points and competing with other well-known brands in the country. CEO Brian Cornell said the company wouldn’t have been profitable in the country until 2021, USA Today notes.

“Of all the options that we evaluated, there is no question that a complete exit from Canada was the most difficult,” Cornell told A Bullseye View. “We knew we would disappoint guests. We knew that this would present unique challenges for partners. And, above all, we knew the impact this would have on our team.”

TGT shares were up 1% as of Thursday afternoon.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/01/target-canada-tgt/.

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