Target says it will pull out of Canada after failed expansion

The retailer to book a massive $5.4 billion charge in the fourth quarter to reflect the loss from the investment.

Target said Thursday it will exit the Canada market, a recent expansion that has resulted in billions of losses and a move that will lead the retailer to book a massive $5.4 billion charge in the fourth quarter to reflect the loss from the investment.

The exit from Canada comes after Target TGT 2.93% moved aggressively to open over a hundred stores quickly in the market, but was criticized almost immediately for doing a poor job of replicating its American shopping experience. Though sales have been rising, the division remained deeply unprofitable.

I wonder who is the wonder kid that invests $5.4bn in Canada? Whats the opportunity cost?

Idiots : capitalism at its worst !

Zellers could not make it and lured Target into a buy out !  :-[

So what happenex to the bright guy who made that call??? A rpomtion I am sure...

All these big USA Box stores come here and ran the Canuck Ma and Pa operators out.

Not only Clothing but hardware and lumber !

Yes..now all the jobs will be lost, lives disrupted....and the mom and pops are closed and dusted forever.Sad really.

I think that too many department stores are a bad move. Opening 100 stores is just asking for losses. It's better to have just a few and e-tail to cover the globe.