Target Corp will abandon its ill-fated expansion into Canada less than two years after its launch, the U.S. discount retailer said on Thursday in a surprise full retreat that will put more than 17,000 employees out of work and cost the company billions in writedowns.Target's shares rose 3 percent in midmorning trading after the company said it will seek court protection from creditors in Canada for the money-losing subsidiary and shut all its 133 stores in the country.The company said it expects to report about $5.4 billion in pretax losses for its fourth quarter, which finishes at the end of January, mostly due to the writedown of the Canadian investment, along with exit costs and operating losses.Target has struggled in Canada since its 2013 launch, facing huge supply chain problems that left stores thinly stocked, disappointing shoppers who had eagerly anticipated the retailer's move into the country, where the discount space had long been 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 2.68% or $1.99/share to $76.32. 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 7246043.
Wal-Mart Stores, Inc. (Walmart) operates retail and other stores in various formats, including membership clubs. Shares of WMT traded higher by 0.87% or $0.75/share to $87.36. 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 1704031.
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