The discount retailer Target Corp. recently announced that it will be closing all its 133 Canadian locations. Target simply can’t compete in the retail space up here. There are less people in all of Canada than in California, so it’s not worth the investment for Target to stay here anymore. Canadian Targets generally offer few products, and at higher prices than in the U.S. Their inventory problems only add to the negative shopping experience. No wonder traffic is slow at Canadian Target stores. It must be frustrating to go buy some soup, but then find out the store is out of stock. 😀
It will cost Target Canada another $600 million to close down for good. 17,600 employees will lose their jobs and will probably have to set up kiosks in the mall to vend for themselves. 😕 At least they will each receive 16 weeks of severance pay.
This is why building up multiple income streams is extremely important. It provides insurance against unemployment. I currently have 4 other sources of income besides my full time job. If I was laid off tomorrow, my other incomes will cover 70% of all my current living expenses. The aim is to get this number up to 100%. I can do this by taking a portion of the money I earn from my full time job, and turn it into an income creating asset such as a private mortgage or dividend paying stocks.
Target Canada Clearance
Target stores will continue to be open during the liquidation process so keep an eye out for reduced prices in the near future. 🙂 I was excited to see Target come into Canada almost 2 years ago. But I suppose it just wasn’t meant to be. As a shareholder I’m glad management has decided to pull out before they lose any more of my money. TGT shares immediately jumped 3% after the announcement was made to leave Canada.
Target’s stock price has performed well since my initial purchase back in 2013. I’m currently up 16% on my TGT investment. At first this might seem like a decent return over a 2 year period. 😀 Many people would be grateful for an 8% annual rate of return. But to be honest it’s actually quite underwhelming. In the world of finance everything is relative. Since I purchased my Target shares, the overall stock market index (S&P500) has climbed 32%. This unfortunately means my investment has underperformed the market. 🙁 Oh well. Win some, lose some. 😕 I believe Target is still a strong company and will recover from its recent mistakes. It still has over 1,800 stores in the U.S. and 366,000 employees worldwide. The dividend yield is 2.8%.
Disclaimer: I’m long TGT. 🙂
Random Useless Fact:
Google can graph mathematical equations like a graphing calculator. For example, copy and paste the following line into Google.
5 + (- sqrt(1- x^2- (y- abs(x))^2))cos(30((1-x^2-(y-abs(x))^2))), x is from -1 to 1, y is from -1 to 1.5, z is from 1 to 5