Target Stores In Canada Are Closing, Leaving 17,600 Jobless

All Target stores in Canada will be closing due to high financial losses, and 17,600 employees will lose their jobs.

The large retailer announced the news Thursday, hoping that closing down the 133 Canadian stores will help financial loss that reached as high as $1 billion every year.

The company experienced rapid expansion, which is why they decided to expand to Canada just two years ago.

Public relations manager Molly Snyder said they “tried to do too much, much too fast.” Progress was made just before the holidays, but overall, Canadian customers just “didn’t respond.”

All stores are projected to be closed in 16 to 20 weeks. The process will start in several weeks.

While the retailer is removing all stores from Canada, hoping to help financial loss, the transition will be a bit rough. Already, they’re expecting a $5.4 billion loss from discontinued operations in the fourth-quarter and a $275 million loss for fiscal 2015.

Target’s CEO said that they examined all options like only closing locations with the lowest performance rate. But in the end, the best option was to leave Canada completely. There was no logical alternative that would turn loss into profits until at least 2021.

Target faced problems at the very beginning of their expansion after getting tangled up in Canada’s expensive regulations. The economy was moving slowly and the competition was too high.

Because of the company’s two year run in Canada, they don’t have any immediate plans to give the country’s market another try. Instead, they will focus on U.S. stores.

As for the 17,600 workers losing their jobs, Target is taking care of them. They received court approval to contribute $59 million in cash to give to almost all Target Canadian workers.

The amount will be equivalent to 16 weeks of compensation. The employees not needed for closing down the stores will also receive benefits until the transition is completed.

Seems like some Canadians are handling the news well.

I’ve had relationships that lasted longer than Target.

— Spotted At Laurier (@SpottedLaurier) January 15, 2015

Well Target, I’m really gonna miss walking right through your stores to get to the main part of the mall — kc (@churchllI) January 15, 2015

Good news for Walmart, I suppose.

[PhotoCredit: Source]

Target Stores In Canada Are Closing, Leaving 17,600 Jobless