Target Could Exit Canada

News & Discussion from the grocery retailers in the Canadian provinces & territories
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Alpha8472
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Target Could Exit Canada

Post by Alpha8472 »

Target is doing very badly in Canada. They are running deep operating losses and it possible that Target could sell their Canadian stores.

Who would want to buy those stores? Walmart and Loblaw could possibly buy them. However, Walmart is not doing that well in Canada either. They are making a profit, but doing business in Canada is difficult since the minimum wage is higher in Canada. There are also so many more restrictive regulations in Canada that it makes a profit that much more difficult in the country.

Target has suffered in Canada because many items that are available in US stores are not available in Canadian stores. The selection is terrible and prices are absurdly high. Canadians cross the border to shop at Target stores in the US because of the low prices and good selection. However, it is too costly to import many items into Canada. The prices in Canada reflect the higher wages and costly regulations of Canada.

Target made a terrible mistake of entering Canada and Target does not know how to salvage the situation.
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