As a US retailer, many Canadians would flock south of the border to find and purchase items they could not get here in Canada, but two years later Target has decided to close its 133 stores in Canada. The company issued a statement this morning:
As a part of that process, this morning Target Canada filed an application for protection under the Companies’ Creditors Arrangement Act (the “CCAA”) with the Ontario Superior Court of Justice (Commercial List) in Toronto (the “Court”).
“When I joined Target, I promised our team and shareholders that I would take a hard look at our business and operations in an effort to improve our performance and transform our company. After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021. Personally, this was a very difficult decision, but it was the right decision for our company. With the full support of Target Corporation’s Board of Directors, we have determined that it is in the best interest of our business and our shareholders to exit the Canadian market and focus on driving growth and building further momentum in our U.S. business,” said Brian Cornell, Target Corporation Chairman and CEO.
The writing of some type of big change with Target Canada was on the walls for months, as the US retailer has been plagued with problem after problem, and no bandaid or campaign made any difference. Looks like the good communications professionals could not even help craft a message that consumers bought or executive leadership could help to deliver.