It lasted but over a year, now retail giant Target, as widely predicted, is set to close in Richmond and across Canada.
The department store chain opened up with a fanfare at 133 former Zellers locations across the country in late 2013, with the hope of capitalizing on its popularity with Canadian shoppers who consistently flocked south to their U.S.-based outlets.
However, Target, which employs 17,600 people across the country, has been widely criticized for not offering the same product at the same price as it did in it U.S. stores and sales failed to take off as a result.
Target Corp announced Thursday it’s to close all its Canadian stores after filing for creditor protection ahead of liquidation.
According to the company, it’s expected to start closing its stores, including Richmond by the end of spring this year.
“Personally, this was a very difficult decision, but it was the right decision for our company,” said Brian Cornell, Target Corporation chairman and CEO, in a press release.
“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.”
Outside the Lansdowne Centre store on Thursday morning, customer Nando Martinez said he wasn't that surprised when he read about the closures on the Internet on Wednesday night.
"I head down to Bellingham a lot to shop and the Targets there are much cheaper and have a better selection of products," said Martinez, a construction cleaning contractor, who actually worked on the opening of al the local Target stores in 2013.
"I am surprised they'r closing it all up so early though."
Target spent millions of dollars transforming the former 138,876-square-foot Zellers at Lansdowne Centre.
The company is seeking court approval to ensure almost all its employees not required for the full wind-down period receive at least 16 weeks of severance.
By the end of the year, Target’s Canadian losses are expected to tip over the $7.5 billion mark.
“We were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021,” added Cornell Thursday.
“This was a very difficult decision, but it was the right decision for our company.”
