More than 100 people are expected to lose their jobs when the Target store in Red Deer closes.
The Bower Place shopping centre store is one of 133 across Canada that will close within five months.
The American retailer opened in Red Deer only 20 months ago, filling the former Zellers site at the south-end mall.
On Thursday, the corporation announced its hasty retreat after it was “unable to find a realistic scenario that would get Target Canada to profitability until at least 2021,” said Target CEO Brian Cornell in a press release.
Shoppers outside the Red Deer store on Thursday had mixed reviews of Target, many citing a lack of stock as a persistent problem.
Lindsay Ord, of Olds, said she was sad to hear Target was pulling out of Canada.
“I was disappointed. I enjoy the products they have,” said Ord, who made sure to pick up a supply of her favourite lotion from Target.
“I spend a lot of time across the border. I’ll probably still get their stuff in the States.”
She particularly liked home décor items available at Target and said there wasn’t another store that was comparable in style and price.
Target Canada had hoped for a lot more sales at Christmas.
“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,” Cornell said in the release.
The Minneapolis-based corporation has 1,801 stores in the U.S.
Shopper John Kloosterman of Red Deer said he browsed in Target at Christmas but didn’t make any purchases.
He said men’s clothing looked good, but he just never got around to buying any.
“I just didn’t really see anything better than Walmart,” Kloosterman said.
He was really worried about the employees who will be losing their jobs.
“It’s just after Christmas. They probably still have debts to deal with. They didn’t see it coming. It’s too bad.”
And with 133 stores closing, who is going to take them over, he asked.
“I just don’t know,” Kloosterman said.
Target Canada employs approximately 17,600 people, or between 100 and 150 people per store. The exact number of employees in Red Deer was not available.
Target’s plans call for nearly all employees to receive a minimum of 16 weeks compensation, including wages and benefits coverage for employees who are not required for the full wind-down period.
The liquidation process is expected to begin in two to three weeks, upon court approval of Target Canada’s plans to hire a liquidation firm.
Bower Place general manager John Rooke said Bentall Kennedy, the management company for Bower Place, was disappointed to hear Target was exiting Canada and concerned about the impact on families and individuals who will be affected the most.
“We all woke up this morning and got the same news as everyone else,” Rooke said.
“We don’t have a lot of details at this time. We’re just trying to make sense of the news ourselves and figure out how that equates to Bower and our client who owns the property.”
Target occupies the largest anchor space at the mall with 118,646 square feet, followed by Hudson’s Bay with 110,672 square feet and Sears at 108,431.
Reeve Martin, president of Red Deer and District Chamber of Commerce, said it’s unfortunate that Target’s expansion into Canada didn’t work out.
“Even though they had a large following, it just didn’t materialize,” Martin said.
He said it was good to hear Target is providing a substantial severance package and the federal government is setting up a specific hotline and some training programs focused on the almost 18,000 Canadian workers.
The chamber is always concerned about losing a significant employer in the city, as well as variety in the retail landscape, but Martin said he remained confident in Red Deer’s retail sector.
“We’ve got Sephora coming to Bower Place so it certainly shows that Red Deer is an attractive location for retailers still. That’s a very, very large international company.”
According to Target Canada’s website, the retailer will continue to accept gift cards through the liquidation period. U.S. Target stores have never accepted Target Canada gift cards and that will not change.
Target Canada stores will continue to accept returns of merchandise purchased at Target Canada stores, according to pre-existing policies. Once Target Canada begins the liquidation process, all previously purchased items, as well as those purchased during the liquidation process, will be final sale. United States Target stores have never accepted returns of merchandise purchased from Target Canada stores and that will not change.
szielinski@www.reddeeradvocate.com