Should Target cut and run in Canada?
Target, by its own admission (see the YouTube video), has made a mess of its business in Canada. The company has lost about a billion dollars since it began operating up north and, while it has pledged to do better, not everyone is convinced it will. In fact, Credit Suisse has gone so far as to suggest that Target’s new CEO, whomever that turns out to be, should seriously consider getting out of the Canadian market altogether.
In a note to investors, as reported by The Financial Post, Credit Suisse analyst Michael Exstein wrote, "We think it may be more prudent for Target to cut its losses and devote 100 percent of its resources on the U.S. — which comprises over 97 percent of the company’s current sales."
Target is looking to roughly double the $1.3 billion in revenue it generated in Canada during fiscal 2013 without the $941 million in losses that went with it. A lot of people are counting on the chain to succeed, including the more than 20,000 individuals it employs in Canada.
- Our Target Canada Team – YouTube
- Target Corp. should cut its losses and exit Canada — soon, says Credit Suisse – The Financial Post
- Target Canada YouTube video admits problems, promises change – The Toronto Star
- Will Target Continue to See a Cold Reception in Canada? – The Motley Fool
What are the biggest challenges currently facing Target in Canada? Do you think Target should bail on the Canadian market?