Target’s exit from Canada could eat into profits of other retailers, according to a Canadian Business report.
“[C]hains like Giant Tiger, Winners and Hudson’s Bay could feel the short-term pain as Target sells off its stock” notes the report.
“[P]eople tend to buy for an immediate need, but the liquidation process gives those consumers a chance to stock up on items they might not have purchased until later in the year. That’s going to steal sales away from other retailers for at least the first quarter and possibly longer.”
And Target will need every penny from those sales, because it owes its venders $3.4 billion.