USA Today reports that Target is pulling out of Canada after only two years. The U.S. retail giant announced today that it plans to abandon its 133 stores in Canada, which have suffered from poor supply chain management and a misguided pricing strategy. In total, the operation has lost more than $2 billion since the expansion was announced in 2011.
The Canadian business is seeking court approval to begin liquidation, the Minneapolis-based retailer said in a statement. The move will lead to a $5.4 billion write-down. CEO Brian Cornell said in a statement that the holiday season wasn't strong enough to bolster Target Canada's chances for success.
"The Target Canada team has worked tirelessly to improve the fundamentals, fix operations and build a deeper relationship with our guests," Cornell said. "We hoped that these efforts in Canada would lead to a successful holiday season, but we did not see the required step-change in our holiday performance." Cornell also said that "we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021."