Target Corp will exit the Canadian market after less than two years in a surprise retreat that will throw more than 17,000 employees out of work and trigger a $5.4 billion quarterly loss.Shares of the U.S. discount retailer, which was granted creditor protection for its money-losing Canadian subsidiary, at one point rose more than 4 percent on the move. The stock was up 2.2 percent at $75.94 in afternoon trade on the New York Stock Exchange.The company announced on Thursday it is shutting all of its 133 Canadian stores and said it expects to report about $5.4 billion in pretax losses for its fourth quarter, which finishes at the end of January. Losses are mostly due to the writedown of the Canadian investment, along with exit costs and operating losses.Minneapolis-based Target, the No. 2 discount chain in the United States, has struggled in Canada since its March 2013 launch. It faced huge supply chain problems due to a myriad of problems at its warehouses, poor communication with headquarters and the use of inexperienced staff. That left stores poorly stocked and selection limited, disappointing shoppers who had eagerly anticipated its arrival in a market where the discount space was long dominated by Wal-Mart Stores Inc.
Target operates through approximately 1,934 stores that include 1,801 in the United States and 133 in Canada. Shares of TGT traded higher by 1.92% or $1.43/share to $75.76. In the past year, the shares have traded as low as $54.66 and as high as $77.75. On average, 5113440 shares of TGT exchange hands on a given day and today's volume is recorded at 14270474.
Wal-Mart Stores, Inc. (Walmart) operates retail and other stores in various formats, including membership clubs. Shares of WMT traded higher by 0.97% or $0.84/share to $87.45. In the past year, the shares have traded as low as $72.27 and as high as $90.97. On average, 7637820 shares of WMT exchange hands on a given day and today's volume is recorded at 7545567.
Source
