10:30 on a Thursday morning, and you could hear a pin drop in the Sunridge Target store.
Employees had just learned the company is leaving Canada after just 20 months.
Read More: Target Canada closing all 133 stores
Target said it was losing too much money and can’t foresee turning a profit for six years.
“I’m not surprised they’re going under,” one shopper told Global News.
“They’re overpriced and there’s no stock – and it’s not that good.”
“They haven’t really given it a chance to make it in Canada, so that’s too bad,” said another Calgary shopper.
Target’s financial troubles became apparent last March when it lost nearly a billion dollars after just one year in Canada.
The company promised to re-brand itself, but business experts say poor Christmas sales were the final straw.
“It’s almost baffling that a company that’s done so well in their home country couldn’t pull off their basic premise for existence – putting product on the shelves for an affordable price,” said David Allwright, Dean of Business at Bow Valley College.
“I was surprised when I heard how quickly they want to do it, rather than taking the less profitable stores.. and focusing (instead) on the ones that are still making money in markets they think they can save,” said University of Calgary marketing professor Debi Andrus.
Target has filed for court protection from creditors. And that has some customers worried.
“When I actually purchased this I told them I’m not a hundred per cent. If I return it am I going to have a problem?” asked one customer.
Read More: Target Canada Q&A
Target said it will continue to accept returns of merchandise.
And stores will continue to accept gift cards.
But customers are still responsible for Red Card balances and bill payments, and anyone with a product warranty is asked to contact the manufacturer.
Target will start liquidating stock at reduced prices within two to three weeks, and says all of its stores will be shut down within six months.
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