Target Canada is closing.
The news is making big waves across Canada, especially among retail analysts and economists, but also from Target fans on social media like Twitter and Facebook.
The U.S. based retailer entered into Canada just a short two years ago and came into the Canadian market with lots of media events and large advertising campaigns. Canadians seemed to welcome the big retail chain.
However, things started to go awry with Target Canada’s operations, including unprecedentedly low stock levels that left consumers frustrated and angry.
Target will close all of it’s 133 stores in Canada, leaving it’s 17,600 employees to find new jobs, as the company has been granted protection from creditors.
Closing shop has been good news to Target investors, who have long believed that shutting its operations north of the U.S. border will help the chain perform better at home. Shares were up 3 per cent following the announcement.
Target Canada caused a massive $1.2 BILLION dollars in debt for the company! Although we are sad to see the company leave Canada battered and bruised, we can only agree that it makes sense.
It will cost the company another $500 million to close it’s stores.
