Just the other day, I took a walk through the local shopping mall here in Central Canada, and again what I saw absolutely shocked me... NOBODY and I do mean NOBODY was doing any purchasing in any of the stores... Everywhere I looked, I saw people "window shopping" but nobody was buying! All of the stores had signs up with "sale" or "clearance" in big letters, but there were no biters.... It was alarming and made me realize that we are right now NOT in a "recession" but a full blown DEPRESSION.....
Yes, the economic situation here in Canada right now is a mess.... The falling price of world Petroleum is having the horrific effect of actually dragging down the entire Canadian economy due to the fact that the majority of Canada's economy is driven by the money made from the tar sands and other Petroleum products produced out of Alberta.... BUT of course with the world price of crude Petroleum now around $45 a barrel (as of today), the province of Alberta can no longer produce their own Petroleum for a profit ... It has been estimated that it takes about $65-$70 worth of hard work to extract one barrel of Petroleum from the tar sands of northern Alberta, and now that Petroleum is hovering around $45 a barrel world wide, the tar sands are producing their Petroleum at a severe loss....To top it all off, the crooked Canadian government passed legislation years back that guaranteed Petroleum exports to the United States no matter what the price... At the time of that legislation, the world price was around $80 a barrel, and rising.. Nobody in their wildest dreams at the time thought that the price would collapse and therefore they would be producing Petroleum at a loss... Now they are suffering the consequences of their own folly......
But besides the dangerous situation with Petroleum pricing collapse, the Canadian marketplace is of course suffering massive blows due to the decline in the retail sales markets right across the country as I have noticed in my own travels.... But just today, I came across the following report that is indeed the signal that we here in Canada are indeed entering a period of economic collapse.... For according to this article, from the CTV News online website, at www.ctvnews.com, it appears that Target America is now pulling out of their operations in Canada after suffering some horrific losses! First, here is that article for everyone to see for themselves, and I do have my own thoughts and comments to follow:
Target pulling out of Canada after failed expansion
Published Thursday, January 15, 2015 8:30AM EST
Last Updated Thursday, January 15, 2015 10:31AM EST
The announcement Thursday not only stunned Canadian shoppers, it dealt a huge blow to Target Canada's 17,600 employees.
The company says that to ensure fair treatment of its employees, nearly all its workers not needed during the wind-down period will receive a minimum of 16 weeks of compensation, including wages and benefits coverage.
Target Corporation CEO Brian Cornell said that, after thoroughly reviewing the company's Canadian performance, the company decided it wouldn't reach full profitability in Canada until at least 2021.
He said along with Target's board of directors, the company determined that it was in the best interest of shareholders and the corporation to exit the Canadian market and focus on growth in their U.S. business.
He said the decision to pull out of Canada was a difficult one, but believes it will be the right one.
"There is no doubt that the next several weeks will be difficult, but we will make every effort to handle our exit in an appropriate and orderly way," he said in the statement.
Target's announcement in 2011 that it had bought 220 Zellers locations from Hudson’s Bay Co., and was coming to Canada, was met with excitement by retail analysts. Canadian shoppers, too, looked forward to nabbing the great deals they had come to love at Target stores south of the border.
But the company's debut in Canada was marred by significant inventory problems that left many shelves bare, and shoppers frustrated. Canadians also expressed disappointment with the prices at Target Canada stores, which many insisted were markedly higher than in the U.S. outlets.
Retail analyst Doug Stephens says ahead of its debut, Target built up a lot of excitement among shoppers with a "brilliant" advertising campaign. But he believes the decision to roll out the new stores in one big launch may have been a fatal one.
"They opened over 100 stores all at once, which for any chain is an incredibly ambitious project -- probably way too ambitious. They probably should have started with much fewer stores," Stephens told CTV News Channel from Las Vegas.
While revenues came in well below expectations, Target terminated its president of Canadian operations in May 2014, replacing him with a U.S. company veteran and vowing to address inventory issues to woo back customers.
Cornell said Thursday the company spent the last year working to "improve the fundamentals" and "build a deeper relationship with our guests" in Canada. But sales over the Christmas shopping season were disappointing.
"We hoped that these efforts in Canada would lead to a successful holiday season, but we did not see the required step-change in our holiday performance," Cornell said.
NTS Notes: Why am I not surprised by this announcement? Target came into Canada expecting to grab much of the marketplace here, but as noted put too many stores in too quickly, and with retail pricing that was absolutely atrocious at times considering that most Canadians are indeed bargain hunters!
I personally have gone into the local Target here in central Canada, and what I saw was a very large store that was devoid of shoppers.... The few that were shopping did indeed shake their heads in disgust at the pricing and lack of store products on many of the shelves..... And talk about service? There was never a body to be found anywhere if you needed help or assistance... Target to me blew it big time and now we are seeing the result of their own folly....
What the CTV article fails to note is that this is the "sign of the times" when it comes to ALL retailers here in Canada... Sears Canada for example is in serious economic woes with sales plummeting, and that goes for other large exclusively Canadian retailers as well.....
I put this article up to show everyone that what our governments claim about how we are on the "road to recovery" is again nothing but pure lies..... The ripple effect of Target America now pulling their operations out of Canada is not yet known, but I can guarantee it will be horrific.....This is a serious economic blow to the Canadian economy in the fact that it will throw some 17,600 employees now out of work in this nation that has yet to feel the full impact of this full blown DEPRESSION that has now hit our nation! The real DEPRESSION has only just begun and we will see many more retailers now closing their doors right across this nation..... The worse is yet to come....
More to come