OTTAWA, Jan. 15 (UPI) -- Target is closing all of its stores in Canada to recoup $2 billion in losses after a failed attempt to expand into the country.
Target will close a total of 133 stores that employ a total of 17,600 people. The stores will remain open through the liquidation of its inventory.
"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," said CEO Brian Cornell in a statement. "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."
Cornell, who took over for Gregg Steinhafel in 2014, said he mulled over his decision, which was not just strategic but personal as well.
"Personally, this was a very difficult decision, but it was the right decision for our company," he said. "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."
Target said it will focus on enhancing U.S. operations where sales have been rising modestly to keep competing in the retail market.
