Target to close Canadian stores by April 12

Wed Apr 1, 2015 5:55pm EDT
 
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April 1 (Reuters) - Target Corp's Canadian unit said it would close the last of its 133 retail stores on April 12.

The No. 2 U.S. discount chain said in January that it would exit Canada after struggling since its March 2013 launch, resulting in 17,000 employees losing their jobs and triggering a $5.1 billion quarterly charge.

Target Canada's three distribution centers and Mississauga headquarters have been closed, the company said in a statement on Wednesday.

"The court-approved real estate sales process is underway and is expected to be completed by the end of June 2015," Target Canada CEO Aaron Alt said.

Minneapolis-based Target faced huge supply chain problems in Canada due to a myriad of problems at its warehouses and poor communication with headquarters. The company also struggled with new technology and systems and inexperienced hires and poor training.

That left stores poorly stocked and selection limited, disappointing shoppers who had eagerly anticipated Target's arrival in a market where the discount space was long dominated by Wal-Mart Stores Inc. (Reporting By Shubhankar Chakravorty in Bengaluru; Editing by Don Sebastian)