Target to pull all Canadian operations

nodle

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Target Corp. will abandon its operations in Canada after less than two years, putting an end to a mismanaged expansion that racked up billions in losses.

The Canadian business is seeking court approval to begin liquidiation, the Minneapolis-based retailer said today in a statement. The move will lead to a $5.4 billion writedown.

This is the first major strategic shift made under Chief Executive Officer Brian Cornell, who took over for Gregg Steinhafel last year. Steinhafel had seen Canada as burgeoning market for Target, the second-largest U.S. discount chain, because so many Canadians already knew the brand and would cross the border to shop at American stores.

Fixing the Canada unit, which amassed more than $2 billion in operating losses since 2011, has been a top priority for Cornell. After taking the reins in August, he spent a portion of his early days at the company touring operations in Canada. The woes plaguing the company’s 130 stores there ranged from empty shelves to prices being higher than locations in the U.S.

“We were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021,� Cornell said today. “This was a very difficult decision, but it was the right decision for our company.�

Source

 
The stock market liked this move. Their new CEO means business.
 
The stock market liked this move. Their new CEO means business.
It's strange you would think that you would WANT to expand though.
 
Sounds like it was mismanaged expansion though which lost money.
 
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