Target's Leaving Canada

Following a rocky launch in Canada and a disappointing holiday season north of the border, Target Corp this morning announced it will be ceasing operation of its 133 Canadian stores and has filed for creditor protection. “We were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021,” said Target chairman Brian Cornell, pictured above at right during his first week on the job last August with Target Canada president Mark Schindele at the Cloverdale Mall location.

Despite Target Canada's team having “worked tirelessly to improve the fundamentals, fix operations and build a deeper relationship with guests,” Brian said the company did not end up seeing the “required step-change in our holiday performance.” With more than 17,000 employees in Canada, Target said cash costs to discontinue its Canadian operations will be between $500M and $600M, but it expects the decision to leave Canada will increase earnings in 2015 and beyond. Brian said the plan now is to focus on “driving growth and building further momentum in our US business.”

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