UPDATE: In a statement sent to the NOW, Jason Mann – spokesperson for the United Food and Commercial Workers Union Local 1518 – called Target’s departure predictable. UFCW 1518 represented Zellers employees at Brentwood Town Centre in Burnaby, one of the 189 Zellers locations that were taken over by Target in 2011.
“It’s no surprise that the Target stores in Burnaby were thin on staff and merchandise when they refused to hire Zeller’s retail workers – who had years of experience running a successful retail operation in Canada,” said Mann in the release.
Original story below:
After less than two years in Canada, Target is closing all of its 133 stores north of the border, including its location at Metropolis at Metrotown.
The sole Burnaby store, which opened in November 2013, replaced the mall’s Zellers location in the American company’s 2011 takeover of 189 Zellers leases. The Metrotown Target boasted 85,000 square feet of selling space, a pharmacy and a Starbucks, and employed 280 people.
“After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021,” said Target chairman and CEO Brian Cornell in a press release.
“The Target Canada team has worked tirelessly to improve the fundamentals, fix operations and build a deeper relationship with our guests. 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,” he added, noting that the next several weeks will be difficult, but saying the company will do its best to handle its exit appropriately and orderly.
According to the release, Target stores will remain open during the liquidation process.
To help the 17,600 employees who will be let go, the company is seeking court approval to contribute $70 million into an employee trust. Pending approval, employees will receive a minimum of 16 weeks of compensation, including wages and benefits for employees who are not required for the full wind-down period.
