Target announced on Thursday that it will close its 133 store locations in Canada due to an unfavorable market environment exacerbated by misguided pricing strategies and unreliable distribution networks.
"The Target Canada team has worked tirelessly to improve the fundamentals, fix operations and build a deeper relationship with our guests," Target Chief Executive Officer Brian Cornell said in a statement, according to USA Today.
"We hoped that these efforts in Canada would lead to a successful holiday season, but we did not see the required step-change in our holiday performance."
Target officially launched plans to construct store locations in Canada back in 2011, but the company is said to have lost over $2 billion since the beginning of expansion. Differences in consumer preferences and expansive geography unique to the North American country have also been cited as contributing factors to its demise.
The company now plans to seek court approval for liquidation of assets.
"In our view, the decision shows the agility of new CEO Brian Cornell to make appropriate decisions to transform the company," investment banking firm Cowen and Company wrote in a research note, Forbes reports.
"Going forward, we expect the company's growth will likely be focused toward digital."
Target also disclosed in its announcement that it did not foresee making a profit in Canada until 2021. Following news of the planned shutdowns, Target stock increased by $2.66 (3.6 percent) to $76.99 prior to the market open.
