Hurt at Home, Target Looks to Canada for New Profits
Target currently has 68 stores in Canada. The openings will occur this fall, with 14 locations opening on September 17 and nine more opening on October 18. Target will have a total of 124 locations in Canada by the end of the year. ”Quebec, Nova Scotia and Ontario offer a variety of culturally diverse markets and we look forward to serving our new guests and engaging with these great communities,” Tony Fisher, president of Target Canada, said in the company’s press release.
Target followed a recent trend in retail when it reported disappointing second-quarter earnings last month. Retailers like Wal-Mart (NYSE:WMT) and Macy’s (NYSE:M) have been hit hard by consumers curbing their spending to just necessities in the face of economic uncertainty. Target’s second-quarter earnings were in line with analyst estimates but still showed the stress of low consumer confidence. Profit fell, revenue increased less than predicted, and same-store sales only rose 1.2 percent.