Target opened its first Canadian stores in March 2013 and on Thursday it announced it will soon close all 133 across the country, affecting about 17,600 jobs.
The U.S. Company’s Chairman and Chief Executive Brian Cornell said the Target was unable to find a “realistic scenario” that would get the company profitable in Canada until at least 2021.
The company has been in Canada for 22 months, with a loss of $2.1 billion U.S.
That’s about $95 million per month, or about $3.1 million per day.
The company said employees will be paid at least 16 weeks’ severance, and the stores will remain open during a court-supervised liquidation period.
Sites affected in Winnipeg are Target stores at Grant Park mall, Polo Park site, Kildonan Place Shopping Centre and Southdale Centre. One store in Brandon will also be closed.
In Manitoba, the first Target stores opened in May 2013.
About 100 to 150 people will lose their jobs at each location, totalling about 680 jobs in Manitoba.
Federal Minister of Employment Jason Kenney issued a statement Thursday.
“We are taking action to provide direct assistance to affected Target employees,” said the statement, adding the federal government will ensure employees know what benefits and services are available, including training for other jobs in demand.
In Manitoba, Target said it doesn't know exactly when each store will close, but all could likely be shuttered within 16 to 20 weeks.
“Target had enjoyed a lot of Canadian cross-border shopping because the Canadian dollar had been high, but people didn't see the same prices in stores here or the same selection, so there was a bit of disappointment on the part of consumers,” said Barry Prentice, a University of Manitoba business professor.
“I’m just devastated. When I saw it on Facebook, I thought it was one of those Facebook pranks,” said shopper Shannon Henzel.
