MINNEAPOLIS (AP) - Target is giving up on its money-losing foray into Canada after just two years, closing 133 stores and cutting loose more than 17,000 employees.
Target said it didn't see how it could stop losing money before at least 2021 on its first international expansion. The closing links Target with a series of other retailers who have learned the hard way that the northern border is tough to cross.
During a call with investors Thursday, CEO Brian Cornell described the decision as "very tough."
What went wrong? Cracking the Canadian retail market, about one-tenth the size of the U.S. and right next door, looks simple. Target's difficulties show it's not.
There are costly regulations. In addition, most Canadians live near the U.S. border, compare prices religiously and are willing to shop in the U.S. to save money.
There's also increasing competition. Canadian standbys like Dollarama and Canadian Tire are formidable rivals. And Wal-Mart Stores Inc., already the biggest retailer in Canada, cut prices to fend off Target.
Other retailers have had similar problems in Canada. Big Lots Inc. and Best Buy Co. have closed stores there and Wal-Mart has seen its sales in Canada weaken. Sears Holding Corp. is selling most of its stake in its Canadian unit.