Target Canada has announced it will discontinue all operations and close their 133 stores across the country, including 9 in metro Vancouver.
There was high expectations for the U.S. based chain when it first made its Canadian debut in 2013. Many consumers were expecting low prices and an alternative to shopping at Walmart. Ironically, prices weren’t too competitive, there was a lack in the variety of products, and the stores sales plummeted.
The stores closure will result in a loss of jobs for 17,600 Canadians. With Target’s Employee Trust, nearly all Target Canada-based employees will receive a minimum of 16 weeks of compensation, including wages and benefits coverage for employees who are not required for the full wind-down period. Target Canada stores will also remain open during the liquidation process.
“The Target Canada team has worked tirelessly to improve the fundamentals, fix operations and build a deeper relationship with our guests. We hoped that these efforts in Canada would lead to a successful holiday season, but we did not see the required step-change in our holiday performance,” said Cornell. “There is no doubt that the next several weeks will be difficult, but we will make every effort to handle our exit in an appropriate and orderly way.”
The announcement comes just one day after Mexx announced it would liquidate all 95 of its stores across Canada.
Image via j.reed
