Target Shutting Down all of their Canadian Stores

After two years of trying to make their Canadian operations work, Target has decided to pull out of Canada.  There’s no need to ask why.  After losing 2.1 billion dollars in the Canadian market, pulling out of Canada seems to be the right choice.  A better question is, why did Target not thrive in Canada?  It’s not like Canada has a lot of successful department stores already.  We have no Macy’s.  Sears has been going out of business in a lot of cities.  So why would a low cost department store not be able to turn a profit?  Perhaps Canadians are content with Wal-Mart?

Image Courtesy of Kayla Rocca, Click to Original Post

Image Courtesy of Kayla Rocca, Click to Original Post

CTV news reports that Canadian Target has 17,600 employees that will be affected by this decision.  Currently, Target has 133 locations in Canada, all of which will be closing.

Target’s immersion into the Canadian market was quick seeing as how after two years they already established 133 locations, but somehow their transfer into the Canadian market did not go as planned.

Angela Mulholland for CTV news reports that Canadians were eager and excited when they first learned that Target was going to spread into the Canadian culture two years ago.  Obviously that excitement was not sufficient to ensure a healthy growth.  Mulholland reports that Canadian Target experienced inventory shortages that led to unhappy customers staring at empty store shelves.  Customers claimed that the stores’ products were also more expensive than the products in the American stores.

It seems like the negative turnout was brought on by several factors.  Why do you think Target wasn’t successful in Canada? Share in the comments below!

To find out the latest fashion news and fashion tips, follow me on Twitter @mollysrunway

Love,

J. Molly

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s