The empty aisles plaguing Target (NYSE:TGT) since its entry into Canada last year are set to fill up as the retail giant begins selling off its inventory across the nation Thursday (February 5).
Target Canada, which announced in January it would close all 133 Canadian stores, was given court approval Wednesday to carry out the liquidation process.
But Canadian bargain hunters may be disappointed by what’s in store.
The company is now advertising on its website that merchandise would be discounted “up to” 30%. Furthermore, it says certain exclusions would apply to its inventory.
“Well, that was disappointing,” said Carol Smith, who was among many shoppers who left Victoria's Hillside Avenue Target empty-handed.
Smith was hoping to get a deal on a high-end blender, but even with a 10%, the product was cheaper at other stores.
“My money is worth more in the bank,” she said.
Close to 200 customers lined up at the Hillside store today, waiting for the 8 a.m. opening.
Sales posters advertised up to 30% off. But many products, such as electronics, bedding and kitchen appliances, were marked down by 10%. Apple (NASDAW:AAPL) products were on sale for a 5%.
There are 15 Target stores in B.C. and approximately 2,000 of its 17,600 Canada-based employees are on the West Coast.
Target is expected to pay out $500-600 million to close operations in Canada as it takes loss on inventory, ends lease agreements and spends $70 million (US$58 million) on employee severance packages.
The company was criticized last month when it was revealed ex-CEO Gregg Steinhafel, who was forced to resign in the wake of a massive customer data breach, received a larger severance (US$61 million) than the entire Canadian workforce.
Target said it expects to report a US$5.4 billion loss in the fourth quarter of 2014, driven primarily by its poor performance in and subsequent exit from Canada.
With files from Carla Wilson, Times Colonist
