/
1x
Advertisement
Proudly Canadian, obsessively Toronto. Subscribe to Toronto Life!
Shopping

Target’s losses could spell better deals for Canadian shoppers

By Jean Grant
Copy link
(Image: Kayla Rocca)
(Image: Kayla Rocca)

Target Canada’s financial performance appears to be, well, slightly off-target. We knew the big-box retailer was struggling after its much-hyped foray into Canadian territory last March, and a recent customer-data breach certainly hasn’t helped bolster shopper confidence. Now the company’s northern arm has chopped its fourth-quarter profit forecast almost in half, predicting a loss of 45 cents per share for its 124 Canadian stores, The Globe and Mail reports. The dismal numbers have led retail analysts to speculate that Target’s Canadian expansion might not be profitable for years—a bleak picture given the company’s optimistic prediction that it would start making money by the end of 2013.

All this is bad news for Target stockholders, but potentially good news for Target shoppers.

CIBC retail analyst Perry Caico predicts that Target could be forced to slash prices in order to lure customers back into the shop—a move that could score points with bargain-hungry Canadian customers, who have in the past complained about slightly higher prices here than in American stores.

Of course, it’s not all doom and gloom for the retail giant. The company has had tonnes of success with designer collaborations, especially its Fall capsule collection with 3.1 Philip Lim Next up is a highly anticipated collection from London label Peter Pilotto, which hits Target stores Feb 9and will no doubt attract a flurry of foot traffic from fashion-forward Canadians.

NEVER MISS A TORONTO LIFE STORY

Sign up for This City, our free newsletter about everything that matters right now in Toronto politics, sports, business, culture, society and more.

By signing up, you agree to our terms of use and privacy policy.
You may unsubscribe at any time.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Advertisement
Advertisement

The Latest

This historic downtown greenhouse just got a makeover
City News

This historic downtown greenhouse just got a makeover

Inside the Latest Issue

The June issue of Toronto Life features our annual ranking of the best new restaurants. Plus, our obsessive coverage of everything that matters now in the city.