Out of range: Target is closing down 13 stores in the US
Target, one of America largest retail stores is closing 13 stores across the United States that has been performing badly over the years. The management blames decreasing profit in these stores as the main reason for the closure.
Target, which have around 1,800 stores in the US alone, said that these 13 stores have been given a deadline to turn things around.
However, as the deadline has passed and these stores still reported a loss giving the management with no other choices than to close it as reported by Fortune.
According to Time, Target spokesperson Kristy Welker said in a statement that not all workers involved with the closure will be laid off. She said that eligible workers will be offered an option to work at other location, however, further details regarding the eligible workers is unknown.
Welker also said in a statement that "The decision to close a Target store is not made lightly. We typically decide to close a store after careful consideration of the long-term financial performance of a particular location"
Currently, Target is beating its competitors like Walmart and Macy with a 2.4 percent increase in sales.
Based on its CEO, Brian Cornell previous plan for as $2 billion cost savings plan, it is high likely that the closure is part of its plan after the store is struggling to increase revenue due to competition and consumer shift from physical store to online shopping.
The full list of affected stores was released by CNN Money and it includes stores in Austin North East in Austin, Suncoast Pasco County in Odessa, Casa Grande, Victorville, East Flint in Flint, Columbus Southwest in Columbus, Springfield, Northridge in Milwaukee, Superior, New Ulm, Ottumwa, Anderson, and Target at Dixie Highway in Louisville.
All affected stores will be closed starting on January 31 next year. However, the closure announcement was caught by surprise and lots of residents and workers are expressing their disappointment through the social media.
Target has been receiving lots of attention lately as the company had been executing many poorly plan strategy.
This includes its latest expansion into the Canada market which saw a flop in the marketing and sales costing the company almost $7 billion including $2 billion in net loss for the Great White North area and massive lay off.
The company also had faced a massive credit card data breach, compromising data of more than 100 million of its customer back in 2013.
However, Cornell is optimistic that Target can be turned profitable and learning from his mistake, Target is planning to invest $1 billion in improving its data system and setting up online shop.