Target (NYSE: TGT) continues to set its sights on Canada. The company announced it will open nine new stores there by the end of the year.
The majority of the new stores will open in Ontario, with single store additions planned for Quebec, Manitoba, Alberta and British Columbia.
Target has experienced hardships with their Canadian expansion. The company has struggled to resonate with Canadian shoppers and keep store shelves stocked at its 124 locations. Enthusiasm for Target's Canadian unit has also waned amid criticism of price differences with U.S. stores. Many Canadian residents travel to the U.S. for shopping trips and are familiar with Target store prices in the United States. When those same customers noticed higher prices in their home country, they became reluctant to shop there.
Target also took a big hit with its Canadian shoppers following its recent data breach. Although Target Canada wasn't affected, the retailer notified Canadian customers who shopped at U.S. Target stores to warn them that their payment data may have been compromised. For Canadians who may have already had reservations about Target stores, the data breach made shoppers even more leery of the retailer.
Target has reported lower-than-expected sales in Canada, which is predicted to have a negative impact on fourth quarter sales. Target says it now anticipates its Canadian stores to post a deeper loss of about 45 cents per share for the quarter, more than the loss of 22 cents to 32 cents it had previously projected.
-See this press release
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