Target's Exit From Canada Leaves Huge Retail Void
Target will close all of its 133 Canadian stores this month just two years after an ambitious expansion in the country. And the retail giant's retreat has angered top landlords of the country's preeminent shopping centers who are now scrambling to fill the vacant spaces. The closures have even raised some questions about the full legality of Target's retreat.
More shocking to some than the company's sudden withdrawal from the country was its exit plan: the Ontario Superior Court of Justice granted Target company creditor production under a Canadian law resembling America's Chapter 11 bankruptcy protection. This came despite the fact that Target Canada's parent company was solvent, which made several legal scholars question the strategy.
On the real estate front, other retailers (Sony, Sears Canada, Best Buy's Future Shop Brand, Staples) have also retrenched in Canada, leading to glaring anchor store vacancies at some top malls. On the other hand, Nordstrom and Saks have slowly grown their presences there.