Richmond-based London Drugs is ready to consider Target locations destined to close and may offer jobs as well.
“We are always looking at opportunities to expand,” said John Tse, London Drugs vice-president of pharmacy, on Thursday. “There are a number of attractive locations,” Tse said, but he was not specific.
U.S.-based Target Corp. said Thursday that it is closing all 133 of its stores in Canada because they are losing money. It will record about US$5.4 billion in pre-tax losses in its fourth quarter with most related to the Canadian operation, which is seeking creditor protection.
Target says the stores will remain open during a court-supervised liquidation period and it's working to ensure employees are paid at least 16 weeks of severance from a $70-million fund.
London Drugs has 78 stores in Western Canada. It is always looking for top-quality staff, Tse said. “When they [Target employees] are ready to come to us, we will be happy to see if they can fit our environment.”
Information geared to Target employees is being distributed to store staff rooms, said Christine Willow, chief operating officer for GT Hiring Solutions.
“They can come and see us and we can work with them,” she said. This could mean helping a worker find another job, assisting with resumé-writing, or looking at government-funded training or wage-subsidy programs.
University of Victoria business professor Steve Tax said Target’s arrival in Canada was “dramatically disappointing.” Supply problems were evident when stores opened.
“The selection was poor. The prices that people had expected to be comparable to the U.S. model were not there. So there were really high expectations and kind of low delivery in terms of the key attributes that people were expecting.”
It is difficult to know which retailers might want such large spaces, Tax said. With the rise of online shopping, demand is often for smaller space.
Michael LeBlanc, senior vice-president of the Retail Council of Canada, said it could take months for the empty stores to be filled. Because Target stores are so new, they are in “great shape,” LeBlanc said. Some space might be converted to other uses, such as offices, he said.
