The Globe and Mail reports in its Friday, Jan. 16, edition that Target's foray into Canada
has ended in disaster.
The Globe's Marina Strauss writes that Target is exiting Canada
after having launched its first
stores here nearly two years ago.
In a botched strategy by overly
confident executives, Target
grappled with shoppers who
complained of too-high prices
and bare shelves. The retailer
never ran an e-commerce site
here and operated stores in former
Zellers locations that often
looked much like the ones of the
faltering Canadian chain it
replaced, notes Ms. Strauss.
In a surprise move on Thursday,
the Ontario Superior Court
of Justice granted Target Canada
protection from its creditors for
an initial 30 days, giving the
chain the okay to liquidate its 133 stores
and let go 17,600 employees. The
outlets are all expected to be
closed within 16 to 20 weeks.
Wal-Mart, Canadian
Tire, Loblaw
and Rona are among retailers
that will probably consider
buying some Target leases. Smaller
retailers may take portions of
Target's store space. Target made a fatal
mistake in not realizing the power
of Wal-Mart Canada and its
low prices, says Tate Economic Research president Jamie Tate.
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