Archived Target Canada alone loses 8 to 9 billion

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Anonymous

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... and that 8 Billion ain't Monopoly money either. It hit's the P&L and has to be recovered somehow, someway. It's either increase sales and profit, or reduce expenses. Can't wait to see how it turns out. Aggressive expansion, if well thought out and carefully planned can be genius. It can also turn into a "cat chasing it's tail" type situation. Yikes!
 
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Tiemypog

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Not good, not at all. Target should have slowly started out in Canada, opening one or two stores in some of the major cities, and then evaluated the situation.

One would think they would have learned their lesson when they kept opening store after store down here and sales didn't keep up.

Well duh!
 
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RedDog

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Tiemypog said:
Not good, not at all. Target should have slowly started out in Canada, opening one or two stores in some of the major cities, and then evaluated the situation.

One would think they would have learned their lesson when they kept opening store after store down here and sales didn't keep up.

Well duh!
Click to expand...

They did the samething with P-fresh. Instead of putting it in markets where it is effective they just put it everywhere and the results have not been good. Canada the same way. Instead of a slow expansion of a few stores that would be full and well run that would create buzz as they slowy opened more they tossed out a bunch of half empty stores and then cut staffing so they come out onto the scene with a reputation for empty stores and bad service. Now with billions in losses they cut hours in the US stores, further wrecking Targets reputation in the US as well at the very time it needs a huge boost.
 
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Megaparsec

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Anonymous said:
... and that 8 Billion ain't Monopoly money either. It hit's the P&L and has to be recovered somehow, someway. It's either increase sales and profit, or reduce expenses. Can't wait to see how it turns out. Aggressive expansion, if well thought out and carefully planned can be genius. It can also turn into a "cat chasing it's tail" type situation. Yikes!
Click to expand...

... it can turn out unbelievably adorable???
 
B

Barcode

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Target has definitely made some poor decisions (Neiman Marcus, Canada, among others...) Will be interesting to see how this turns out.

Think the last thing that hit big for Target was Missoni, and that's been a few years now....
 
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bab5crusade

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I wonder if our paychecks will be hurt to bail out Canada?
 
Dr Laytex

Dr Laytex

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Lrn 2 math better. It's 800-900 Million. Still a lot of money, though.
 
EMFlow

EMFlow

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Barcode said:
Target has definitely made some poor decisions (Neiman Marcus, Canada, among others...) Will be interesting to see how this turns out.

Think the last thing that hit big for Target was Missoni, and that's been a few years now....
Click to expand...

Shops at Target
 
sigma7

sigma7

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@Dr Laytex the article says $8B-9B. So I'm not sure if yahoo finance needs to fact check better or if that is the actual number
 
Dr Laytex

Dr Laytex

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sigma7 said:
@Dr Laytex the article says $8B-9B. So I'm not sure if yahoo finance needs to fact check better or if that is the actual number
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New York Times:
Correction: February 25, 2014
An earlier version of this article misstated the loss that analysts expect Target will report on its Canadian operations. The expected loss is $800 million to $900 million, not $8 billion to $9 billion. The error was repeated in a capsule summary.
 
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S

Softlines Owns My Soul

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yeah 8-9 billion was a preposterous number, the net income for 2013 was 3 billion

anyway 800-900 billion - consumed TL, there's your figure

not good
 
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Guest

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Still a lot of money. Oh well, I guess Canada wasn't ready for Target.
 
pellinore

pellinore

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I understand that Spot had no choice about opening up a few stores at a time......something about the purchase of the stores....that Spot had to open all of them....or none.

Anyone else hear this?
 
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Barcode

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kingpin003 said:
I believe they obtained the property/leases of the company they bought out. They probably rushed to open many stores so they weren't paying for empty lots.
Click to expand...

I was thinking about that too... Wasn't it Zellers they bought out?
 
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agent S

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I work at a Canadian store and it really sucks to see all the problems we are having. They had to open all of them because they were paying for the building and not making any money so spot thought by opening them they would at least make something. However they are not thinking about the complaints from guests on half stocked stores. I just transferred to one of the stores opening soon and noticed a lot of improvements but still not good. It's gonna take a long time to regain our rep.
 
pellinore

pellinore

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Hopefully, something will go really well for Spot soon.....the RedCard breach won't go away until they get something good.

My store has been in the news because of we've had a few large thefts...and this goes in the local newspaper and everyone knows about it. My store has had a lot of bad publicity and people notice it because the crime rate is pretty low in the area.

Target Canada's woes are now becoming more "well known" with people outside of Target.

Fourth quarter sales was down way over 40%...not good for Spot.

The best chance Spot had for good publicity would have been Shawn White in the Olympics....but one event he took himself out of the competition and the other event he ended-up in 4th place. Well, 4th place is darn good for an Olympic champion, but it doesn't help Spot.

TMs are very unhappy about the change with medical insurance....of course the TMs will talk about it and then non-Target people will hear about it and wonder what is going on with Target. This situation is not a confidence builder for Spot.

Oh, as TMs leave because of the change in medical benefits stores will be so understaffed it will be a nightmare!

Way to go Target!!
 
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