Bad news for our friends in Canada – Word has been received through several media sources (including Fortune, quoted in this piece) that Target Canada has decided to close all of it’s stores across the Country. In total, Target Canada employs roughly 17,000 people across 133 stores, this news will definitely come as a blow to Collectors and families alike.
Granted, Target Canada was known for not having what shoppers wanted in stock, or worse, having that stock and charging anywhere from 2% – 8% more than it’s competitors. Besides all that, this means one less outlet for Canadians to purchase their favorite Modern Army Action Figure. The only positive here is that all Target Canada stores will of course liquidate their stock, saving a pretty penny for shoppers.
From Fortune –
The stores will remain open during the retailer’s liquidation process. As a result of the move, Target is expected to report about $5.4 billion of pre-tax losses on discontinued operations for the fourth quarter of 2014, driven primarily by write-downs for the company’s investment, along with costs associated with the exit from that market. Cash costs to discontinue the Canadian operations will be $500 million to $600 million, most of which will occur in the company’s fiscal 2015 or later.———-
You can share your thoughts on Target Canada’s decision to shut down operations after the break.
Xerofall says
Target to shutter Canada stores, book $5.4 billion charge - Fortune
Wow!
C.I.A.D. says
That stinks, but I've spoken with many of my Canadian friends during the time that Target was open and sadly, no one really had anything nice to say. However, at least it was (in theory) another spot to hunt for toys.
sbartek1974 says
So then it's really no loss to the shoppers? Especially since Joes are not being sold at Target anymore. It does suck though, because it's puts a lot of our neighbors out of work.
Xerofall says
Joes or not... the idea that an entire country can lose a retailer like Target is pretty scary.
samantha says
Ouch, that is very sad new. The people who work there are the biggest losers. Job hunting right now sucks.
nighthawk says
I feel for the employees. However, since the Ultimate wave of Retalliation, they stopped selling G.I.Joe. I got what I needed during that time (at $5 each) and a $20 Tomahawk but after that, I only went there to buy toys for my kids. Never had anything I wanted and when they had the Star Wars I needed, even Toys R Us was cheaper.
txbart says
Xerofall says
I have a funny story that pretty much sums up how I feel about Target.
One day I went in looking for the Retaliation three packs. I had searched their inventory online and knew they had them in stock, but they weren't on the shelf.
I went searching for an employee to help me locate them. Looking, looking, no one in sight. I finally find someone and I was told they weren't in that department and couldn't help me. Then I run into a co-worker of mine. She was there looking for a birthday present for her daughter. She's a 30 something mom (MILF) by the way.
We got to talking about how I couldn't find an employee that would help me and that I felt Target only cares about 30 year old moms. It's basically a store targeted (pun intended) at that demographic.
She scoffed, saying I was crazy, then turned the corner only to find the exact employee I dealt with earlier. She asked if he could help me find the GI Joe figures I was looking for and the guy pretty much jumped at her request. He returned with both sets I was looking for.
She says something like, "See that wasn't so hard?"
I replied... yeah, because you're a 30 something mom! Ha.
Xerofall says
This is interesting... from CNN...
Woe Canada! Many U.S. retailers fail up north - Jan. 15, 2015
Sears has struggled in Canada for years, and the company announced in October it was selling a big stake in its Sears Canada unit in order to raise much-needed cash. (Sears isn't exactly a huge success on this side of the border either.)
Electronics retailer Best Buy closed a bunch of stores in Canada two years ago. The company, which also owns Canadian electronics retailer Future Shop, laid off 950 workers last year in January.
And closeout retailer Big Lots closed its Canadian stores in late 2013.
Antony Karabus, CEO of HRC Advisory, a retail consulting firm in Toronto, said some of these American retail chains expanded too aggressively.
In some cases, there just simply wasn't a need to open that many stores. After all, it's not like Canada is an emerging market with a middle class that has yet to be tapped.
Giant Tiger, Canadian Tire and London Drugs are just a few of several big Canadian retail chains that Target and others have had to face off (yes, a deliberate hockey reference) against.
"There is nothing wrong with the Canadian retail market," Karabus said. "Target just came in with all guns blazing."
Karabus praised Target for making the tough decision to leave Canada and said that it's clear that the company has "priorities south of the border."
Some American retailers get it right. Still, some retail icons that had problems in Canada have been rewarded for sticking it out and turning things around.
Wal-Mart and Lowe's have both reported better results in Canada lately.
Wal-Mart CEO Doug McMillon said in a conference call with analysts last November that the company's sales improved thanks to investments Wal-Mart made to remodel its Canadian stores.
And Lowe's, which faced tough competition from Canadian home improvement retailer Rona, noted in its most recent earnings report in November that its Canadian operations have now reported same-store sales increases of at least 10% for the past six quarters. (Lowe's actually tried to buy Rona a few years ago but Rona rejected the offer.)
"The best companies have adapted and learned from their mistakes," said Wendy Evans, president at Toronto-based Evans & Company Consultants, a retail advisory firm.
Karabus said several other U.S. retailers are having no problem in Canada. He noted that Apple stores are a big hit and that Costco has done a "remarkable job" in Canada.
Dragasses says
toys or not that's 17,600 kanuks out on their ears. that's a lot of families. no good.
Keep reading: Target Canada is closing all stores - Page 2
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