What really happened to Target Canada?
The untold tale of Target Canada's difficult birth, tough life and brutal death
In February 2013, about a dozen senior-level employees gathered at the company's Mississauga, Ont., headquarters to offer updates on the state of their departments. The 750 employees at the Mississauga head office had worked furiously for a year to get up and running, and nerves were beginning to fray. Three test stores were slated to open at the beginning of March, followed shortly by another 21. A decision had to be made.

Their concern was that with severe supply chain problems and stores facing the prospect of patchy or empty shelves, Target would blow its first date with Canadian consumers. Still, neither one outright advocated that the company push back its plans. Nobody disagreed with the negative assessment-everyone was well aware of Target's operational problems-but there was still a strong sense of optimism among the leaders, many of whom were U.S. expats.

The former employee says the meeting ultimately concerned much more than when to open the first few stores; it was about the entirety of Target's Canadian launch. Postponement would mean pushing back even more store openings. Everyone else in attendance expressed confidence in sticking to the schedule, and by the time the meeting concluded, it was clear the doors would open as promised. "That was the biggest mistake we could have made," says the former employee.

Roughly two years from that date, Target Canada filed for creditor protection, marking the end of its first international foray and one of the most confounding sagas in Canadian corporate history. The debacle cost the parent company billions of dollars, sullied its reputation and put roughly 17,600 people out of work.

Why Target Canada collapsed has been endlessly dissected by analysts, pundits and journalists. But the people who know what happened best are the employees who lived through the experience. On the first anniversary of the company's bankruptcy filing, Canadian Business spoke to close to 30 former employees in Canada and the U.S. to find out how Target, one of the best retailers in North America, got it so wrong in Canada. Even those employees remain baffled by how Target Canada collapsed. But what emerged is a story of a company trapped by an overly ambitious launch schedule, an inexperienced leadership team expected to deal with the biggest crisis in the firm's history, and a sophisticated retail giant felled by the most mundane, basic and embarrassing of errors. Read the rest of the story here. canadiangrocer.com

Toronto-area Goodwill retail shutdown blamed on 'fiscal crisis'
A fiscal crisis brought on by high rent and declining sales has forced the surprise closure of 16 Toronto-area Goodwill stores, according to the charity's CEO Keiko Nakamura. The 80-year old organization, which collects and resells donated clothes and goods, abruptly shut down 16 stores, 10 donation centres and two offices in the GTA, Barrie, Orillia and Brockville on Sunday. Nakamura, the top executive for Goodwill in Toronto and much of Ontario, said Monday that the charity generates 85 per cent of its revenue from retail operations - but poor market conditions mean the stores will remain closed until further notice. The shut down has left the organization's 430 retail workers, drivers, and cashiers "shocked and deeply concerned," according to their union. thestar.com

Big U.S. department stores moving into Canada, but is the demand there?
On Feb. 18, big-name retailer Saks Fifth Avenue will make its Canadian debut in Toronto. Two more Nordstroms are supposed to set up shop in the city this fall (Sept. 16 at Toronto's Eaton Centre and Oct. 21 at Yorkdale Centre). Canada's popular Quebec-based fashion chain, Simons, is also expanding in the east after seeing success in Edmonton. "The simple truth is that the retail economy in the U.S. remains relatively stagnant," said Doug Stephens, who runs the Retail Prophet. So what's behind the sudden Canadian conquest? Well, there are a couple theories. "The simple truth is that the retail economy in the U.S. remains relatively stagnant," said Doug Stephens, who runs the Retail Prophet. "The auto sector is one of the few exceptions. But for apparel and other consumer products, growth has been anemic at best. This has got many retailers looking to Canada as an expansion target." globalnews.ca

Canadians Break Holiday Online Shopping Records in 2015 - Up 20%
In November, online sales accounted for 9.7%, the highest in Canadian eCommerce history. This record was broken in December when online sales climbed to 9.9% of total retail sales, up from 8.6% in 2014. The online shopping category showed a 20% increase during that same period compared to 2014, representing the highest year-over-year growth in SpendingPulse's ten-year history measuring Canadian retail sales. pointofsale.com

Marc Poulin gets candid about Safeway integration -
Sobeys CEO talks about the retailer's past challenges and future priorities
The slowing economy in Western Canada has made it more difficult to integrate Sobeys' acquisition of Canada Safeway into its operations, says Marc Poulin, president and CEO of Sobeys. Poulin says "it can't be hidden" that it has been harder for the company to integrate its $5.8 billion acquisition of Safeway in 2013 into the company than it would have been if the economy in Western Canada was functioning the way it was two years ago. Nor has the integration of Safeway operations into Sobeys been glitch-free, admits Poulin. He told his business audience that the merging of Safeway's IT system into Sobeys' has been the number one priority during the integration. However, in the long-term, Safeway will serve as a major plank in Sobeys' strategy to transform Canadians' relationship with food as part of its "Better food for all" program, Poulin says. canadiangrocer.com

Loonie's Value Keeps Canadian Shoppers Home
While more Americans are going to Canada to spend their dollars, the Brockville Downtown Business Improvement Association sees something else - more Canadians staying home. The difference in dollar values is so sharp right now that it more than makes up for higher Canadian retail prices. There's another side of the same coin, however, and one that's not quite so good for Canadian businesses. They are shelling out more for inventories and supplies that come from the U.S. As for the cause of the falling Canadian dollar: that's tied to falling global oil prices, which show no sign of reversing anytime soon. wwnytv.com

Canadian Retail Sales Post Surprise 1.7% Gain in November

 

Police using video to track down jewelry store robbers
On Thursday, investigators released a video and still images of robbery in which three men used a hammer to smash glass display cases and grab jewelry and watches from the Charm Diamond Centre in Carlingwood Mall on the evening of Dec. 23. They also posted pictures of that robbery and a Jan. 4 nighttime robbery in which four men using the same modus operandi as the earlier theft - robbed a jewelry store in Billings Bridge Plaza before fleeing the mall to a waiting vehicle. Police believe that at least some of the men were involved in both robberies. ottawacitizen.com


Belledune: Foodland hit by Armed Robbery attempt
The Foodland grocery store in Belledune was the scene of an attempted armed robbery Wednesday by a man with a knife. The robber was wearing a red, blue and white plaid jacket, blue jeans and a fur cap with beige and dark markings. His face was covered. The man approached a cashier around 6 p.m. and demanded cash. He spoke English and did not have an accent. Employees went to the rear of the store and the man fled on foot, heading south on Main Street. No one was injured. cbc.ca


Brantford, ON: Drugs stolen from Shoppers Drug Mart at knifepoint
Police in Brantford are searching for a man in a black winter coat who allegedly perpetrated an armed robbery. The robbery was reported around 9:30 p.m., at the Shoppers Drug Mart on King George Road. According to police, the man pulled out a knife and demanded drugs, then was taken to the back of the store where he "helped himself to a large quantity of narcotics." ctvnews.ca

Prince George: RCMP arrest TV Shoplifter who pulled a knife on Loss Prevention at a Westgate store
A 27-year-old Prince George man is in custody after allegedly pulling an edged weapon on staff who were attempting to stop him from fleeing a big box store in the Westgate shopping centre with a television on Monday afternoon. Prince George RCMP, who were called to the scene at about 3 p.m., deployed a dog service team and a helicopter, as well as several general duty members, and about 40 minutes later a suspect was arrested in the parking lot of the Ecole College Heights elementary school. princegeorgecitizen.com

Surrey, BC: Police investigate smash-and-grab at Virgin Mobile store

Grande Prairie RCMP investigate string of weekend robberies

Thieves make off with prized art works from Iqaluit museum

West Kelowna: RCMP Looking to Identify Man Involved in Assault at Real Canadian Superstore

Scotch Creek: Stolen pickup rams into People Drug Mart