Retail meltdown: Target Canada goes belly up

[SSSnail]

I wish I had gone ahead and invested in Target last year when they had the security breach. I really thought about it for a while, but didn't quite. Now I see that the market appears to be reacting positively to this news, and the stock is up to about $76. From the $55 level less than a year ago, this would have been a nice 38% gain in under 12 months.

Yeah I wish I could trade retroactively as well, I would have been a billionaire in a day. Fuck that paltry 38% gain in a year.

 

[BoberFett]

Something is going on in retail. And beyond just retail.
While Wally World complains about their drop in sales, the others simply go belly up.
And gas will soon be under a dollar a gallon.
MAybe, just maybe, this idea of screwing the middle class out of existence, as well as the unions that build the middle class, just maybe that philosophy isn't working out as well as politicians and the Fox Newsed brain washed had expected?

Restaurants are empty, stores are empty, movie theaters are empty, and while more and more people are finding jobs, just as with car technology for saving gas, consumers are saving resources as well. Staying home, and conserving money, reducing debt.

Technology re-built cars to get better mileage and consume less gas.
And that is reflecting in lower gas prices because the need just isn't there, not like before.

And consumers were told to save, pay off credit cards, and get out of debt because the financial future was unknown, so people did exactly that.
Retail, like the oil companies, are feeling the pain.
Cars and consumers are doing exactly what was instructed they do. Strive for efficiency.
And it all makes sense.

If employment is on the rise, with people finding those much needed jobs, then naturally people are going to change their spending habits this second time around.
Less impulse buying, reducing debt, fewer credit cards, less technology addictions, and maybe that new iPhone purchase can just wait for another time.

When you have a strong middle class with a reasonable safety net in place, and unions in place to ensure a level playing field when it comes to wages and benefits, then you will have more people out there in the stores with cash in hand.
Just like those good ole days.

But when politicians demonize all that made the middle class what they are, or once were, and strip and chip away at their core, we get exactly what they wanted.
A middle class in poverty, a great divide in wealth, and that snowball effect.
I think Reagan called it that trickle down economics theory.

Isn't it wonderful how their short termed greed can turn around into their long term misery.
And they wonder why...

Are you mentally deranged?

 

[Eug]

If you're doing all the work to expand into a new international market, and expect to be successful, it makes sense to go big. There would be a lot of overhead just to open in a new country, and a smaller presence would make it harder to establish a brand, not giving you a good idea of demand. Of course 20 stores in a smaller geographic region may have still been appropriate as a test...

I remember when the Target rollout was happening, some of the financial gurus said Target was crazy, or at least taking a huge risk. Many suggested a slower rollout.

I guess the gurus were right this time.

I didn't realize just how crazy though. 133 stores in 22 months? Wow.

BTW, Target rolled out in large part by taking over Zellers' stores. That in itself maybe should have been a warning sign. Zellers' in the last decade sucked and was going out of business because it sucked. A lot of the Zellers were in crappy locations too - cheap rent - as Zellers was a very low end kind of store.

 

[SP33Demon]

Another American expansion into Canada halted. Go Canada!!!

It's only fair since Canada's universal healthcare virus spread to the U.S.

 

[CoPhotoGuy]

They're more expensive than Walmart in the US, too. Not drastically so, but enough that I don't do any grocery shopping there.

I gladly pay more money at Target so I don't have to go to the Walmart and don't have to deal with the people there.

 

[Ns1]

I gladly pay more money at Target so I don't have to go to the Walmart and don't have to deal with the people there.

+infinity

 

[Red Squirrel]

Walmart would not be so bad if they opened more than 2 cash registers at a time. It's crowded because of the backlog of people waiting in line to pay and lot of those people probably suddenly remember things that they forgot and go back to get them. When you're bored from waiting the thought of going back to shop for more stuff becomes more and more appealing and there's that glimpse of hope that when you do come back there might be more cashes open and it will go faster, but it never actually happens. It's a vicious cycle, and probably by design. Would be nice if they did like Hope Depot and had self checkouts. Though knowing them, they'd probably just layoff a bunch of people and only have 1 cash open at a time.

 

[KeithTalent]

It's only fair since Canada's universal healthcare virus spread to the U.S.

Except you guys totally fucked it up.

KT

 

[Sonikku]

If he hadn't there's no way our overlords ever would have allowed it to be passed.

 

[Imp]

Stop the presses!

http://www.cbc.ca/news/business/target-canada-s-liquidation-sales-add-to-worker-chaos-1.2940749

It turns out, if you effectively lay off all your employees and then work them harder, they get unhappy and might stop showing up for work. Doesn't sound like they get "real" severance either -- severance as in you get paid after your last day.

 

[CZroe]

Canada still seems to have decent stock of a game I suddenly can't find anywhere in the USA. Unfortunately, Amazon will not ship it to the USA. Anyone mind picking up a couple things for me?

 

[andylawcc]

As sales ramp up and employees’ jobs wind down, David asks that eager discount shoppers show some compassion.

"My request is, the people that come in, they have some level of understanding that it’s not going to be easy for the people that are behind the cash registers and getting that stuff onto the floor."

"Every time we sell something, we know we’re one step closer to losing our jobs."

ya, sucks to be the last wo/men standing.

on the bright side, at least its in Canada eh?

 

[Red Squirrel]

I like how they're saying the employees have bad morale for leaving. Maybe the company has bad morale for laying them off! Of course if they're closing they don't have a choice... but they can't turn around and expect the employees to stick around longer than they have to. If they find a new job they'll take that new job now.

It's cool that Sears seems to be looking at trying to give them jobs though. But even then a lot of people will be stick jobless in an already bad unemployment rate situation.

 

[Imp]

I like how they're saying the employees have bad morale for leaving. Maybe the company has bad morale for laying them off! Of course if they're closing they don't have a choice... but they can't turn around and expect the employees to stick around longer than they have to. If they find a new job they'll take that new job now.

It's cool that Sears seems to be looking at trying to give them jobs though. But even then a lot of people will be stick jobless in an already bad unemployment rate situation.

That's the same Sears that closed a bunch of stores, even the four (?) floor behemoth at the Eaton Center, over the past year or two. Last I heard, the company isn't exactly doing well in Canada...

Edit: On a related note, Wrigley's is closing a factory, cutting 380 jobs in Torona.

 

[Train]

That's the same Sears that closed a bunch of stores, even the four (?) floor behemoth at the Eaton Center, over the past year or two. Last I heard, the company isn't exactly doing well in Canada...

Sears isn't doing well anywhere.

Scooping up Target employees is just a cost saving measure for them... they are likely to be at least slightly more trained in retail than the avg applicant.

 

[Red Squirrel]

Yeah Sears where I am is doing well last I heard but they closed a bunch of stores too in other places.

Retail in general is in big trouble I think. It's so easy to order online now and shipping companies are getting better and better at getting stuff to you faster. I remember having to wait a minimum of 2-3 weeks if I order something from an online store. Now it's often within the first week. I've even had the odd item arrive a few days after I ordered. That makes ordering online much more viable when you know you're not going to wait as long.

 

[mmntech]

Stop the presses!

http://www.cbc.ca/news/business/target-canada-s-liquidation-sales-add-to-worker-chaos-1.2940749

It turns out, if you effectively lay off all your employees and then work them harder, they get unhappy and might stop showing up for work. Doesn't sound like they get "real" severance either -- severance as in you get paid after your last day.

They're probably looking to fire a few people so they don't have to pay them. Of course if your fired, you can't collect EI.

My mom was in Target today and said there's still no deals there, even though they're liquidating.

I don't know what Sears plans to do with the stores. Maybe they're thinking of resurrecting K-Mart. They've been circling the drain for years though. Not sure if that's a wise business decision.

 

[Red Squirrel]

Convert them all to giant Tim Horton's. I never heard of one of those going under.

 

[Imp]

News stories that popped up yesterday said, if I recall correctly, that the liquidation will be like "Black Friday" starting later this week?

I heard about Sears offering to hire some of Target's employees, but only Goodlife Fitness seemed to mention anything about maybe moving into some of Target's stores.

Otherwise, I'm assuming that Zellers/Target was closed for a period of time for renovations. People got by then... they can probably get by again even if nothing opens in their place.

 

[Ns1]

News stories that popped up yesterday said, if I recall correctly, that the liquidation will be like "Black Friday" starting later this week?

I heard about Sears offering to hire some of Target's employees, but only Goodlife Fitness seemed to mention anything about maybe moving into some of Target's stores.

Otherwise, I'm assuming that Zellers/Target was closed for a period of time for renovations. People got by then... they can probably get by again even if nothing opens in their place.

have you guys EVER been to a liquidation sale?

1) Retailer unloads responsibility to 3rd party
2) 3rd party jacks everything back up to retail, eliminating all sales
3) Discounts "start" at 20% off retail and then increase 10% each week until shelves are bare

 

[Imp]

No, I have not... Boxing Day doesn't count.

 

[Ns1]

No, I have not... Boxing Day doesn't count.

Summary: waste of time unless you're looking to buy an end cap or something. Like, the physical end cap so you can use it in your store.

 

[waffleironhead]

have you guys EVER been to a liquidation sale?

1) Retailer unloads responsibility to 3rd party
2) 3rd party jacks everything back up to retail, eliminating all sales
3) Discounts "start" at 20% off retail and then increase 10% each week until shelves are bare

You forgot the part where the third party ships in all kinds of junk to add to the
"sale".

 

[lupi]

damn cannucks can't run their own stores so US jobs being lost!


http://finance.yahoo.com/news/target-plans-2b-cost-cutting-211400605.html

 

[feralkid]

They're probably looking to fire a few people so they don't have to pay them. Of course if your fired, you can't collect EI.

My mom was in Target today and said there's still no deals there, even though they're liquidating.

I don't know what Sears plans to do with the stores. Maybe they're thinking of resurrecting K-Mart. They've been circling the drain for years though. Not sure if that's a wise business decision.

Wait, wasn't it K-Mart that bought Sears?