Target shutting down in Canada after only two years

Target announced Thursday that it will shut down its struggling operations in Canada, less than two years after its launch there.

The retail giant will close 133 stores and lay off more than 17,000 Canadian employees. The failed expansion in Canada already cost the company around $2 billion, and it expects a writedown of more than $5 billion for the last quarter of 2014.

Target’s expansion into Canada has been largely calamitous since the launch in March 2013. Customers found shelves in some stores empty due to supply chain problems. Shoppers also complained that Target’s prices in Canada were higher than in its American stores.

In a statement Target Chairman and CEO Brian Cornell said, “After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021.”

Cornell became CEO last summer after the previous chief, Gregg Steinhafel, stepped down in May. Two weeks later, the head of operations in Canada was laid off.

Although retailer’s problems in Canada have been widely known, the sudden decision to close all the stores was considered a surprise. Minnesota-based Target is the second-largest discount retailer in the U.S., after WalMart.

We're not going anywhere.

Stand up for truly independent, trusted news that you can count on!