Big News. How well is the economy really doing in Canada ??????????????
Just heard that TARGET is closing all 133 stores in Canada and letting go 17,000 employees.
Bombardier is doing the same with the Lear Jet division and laying off 1,000 employees.
Will that affect our optical retail section in any way looking at the general picture ?
Target Corp. will also record about US$5.4 billion in pre-tax losses ................
Target says it will close its stores in Canada — a market that it entered only two years ago.
The U.S. based retail company has 133 Canadian locations and 17,600 employees across the country.
Target Canada has struggled from the start and there has been speculation in business circles that its days were numbered.
Brian Cornell, who became the U.S. company's chairman and chief executive last year, said he had promised to take a hard look at ways to improve the discount retailer's performance.
"After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021,'' Cornell said in a statement.
"Personally, this was a very difficult decision, but it was the right decision for our company.''
The company says the stores will remain open during a court-supervised liquidation period and it's working to ensure employees are paid at least 16 weeks of severance.
Target says it will also work with an advisor to sell its real estate and expects to spend between US$500 million and US$600 million in cash to end its Canadian operations.
Target Corp. will also record about US$5.4 billion in pre-tax losses in its fourth-quarter, mostly related to the Canadian operation.
The company said it would provide US$175 million of credit to fund Target Canada's operations while it winds down under the Companies' Creditors Arrangement Act, or CCAA, which is one of the Canadian equivalents to the U.S. Bankruptcy Act.
It is seeking to have the court appoint Alvarez & Marsal Canada as CCAA monitor, a role that acts as a liaison between the court, the company and other stakeholders.
http://www.cjad.com/cjad-news/2015/0...ian-operations
Let's not forget Suncor laying off 1000 employees (although still making billions). Looks like the glory days of Alberta are being threatened. Reports say the province is headed into a deficit situation...Originally Posted by Chris Ryser
And since both Eye Recommend and FYI are based out of Calgary (not to mention the many independents), the answer is yes - the industry shall be affected. The Alberta gravy train is slowing down.
This is a dumb question but do you have stores that are similar to target that Canadians shop at instead? Target is very popular in the states and its hard to imagine them doing so poorly in Canada.
It is hard to maintain the same price points for consumer goods at Target in Canada vs. the U.S. Most of the goods are shipped into the U.S. at Pacific coast ports from Asia, and then have to be transported to Canada. - The Canadian dollar is now down about 11% against the U.S. dollar. We are near the border, and Canadians have been flocking to our malls for holiday shopping. Our prices are lower, and there is a greater variety of brands and choices. That will change with the recent changes in exchange rates. I don't think that with the higher tax rates Canadians pay on their goods (remember they get medical care etc. for those higher taxes), that consumer goods made outside of Canada can be priced any lower. One example: Payless shoe stores in the U.S. have an average price point of U.S.$15.97. In Canada that goes up to C$ 31.02. No wonder the Payless stores in Plattsburgh NY and Watertown NY just about sell out. I happen to think that the Canadian model may in fact be better. I would gladly pay more taxes for increased medical services, etc. Also, the Canadian model is somewhat protectionist when it comes to favoring goods made in Canada. If we did that here in the U.S. most of our major corporations would still be U.S. owned. But - The U.S.is in soooo much debt to China, that will probaly never happen in my lifetime.
Lost and confused in an optical wonderland!
I would hope that the Canadian economy is not totally dependent on Target or Bombardier. In the case of Bombardier the are also cutting a bunch of jobs in Kansas it their Learjet division due to increasing competition from Embraer, Grumman and other manufacturer.
Last edited by rbaker; 01-16-2015 at 01:49 PM.
One little Canadian example. .........................
One little Canadian example.
When we buy something for our company, we need to buy a minimum of $ 500.00 to get it delivered at a cost of $ 75.00 plus 5 to 10% additional fuel surcharges.
So far I have not seen one, not adding the additional fuel surcharges since the price of fuel has gone down.
Good point, let's see what happens when I disregard the fuel surcharges and shortpay my courier company this month. All these companies are just a bunch of greedy suits with no ruefulness.
Target's foray to the Canadian market was screwed up from the beginning.
They took over most of the Zeller's locations. Most were B and C locations (not top line).
The prices were higher in Canada than in the states and there were supply chain problems.....the shelves were often bare
and merchandise was often out of stock. Also they opened too many stores too soon. They should have opened a handful at a time.
All of these factors were responsible for their failure.
If they replicated the same shopping experience that happens in the U.S. stores, then they may have had a chance.
They didn't get it that us Canucks like to shop at Target U.S. the way it is.....then changed the formula.
Regards,
Golfnorth
So do you also post stats of Canadian companies that are hiring people or do you just post the doom and gloom stuff?
If you predict that all is going to Hell in a hand basket you will be correct more often than wrong. You cant go wrong betting on the stupidity of the human race.
doom and gloom stuff? ...........................
As you have noted, or you would not have asked that question........I do not.
The ones that do hire are on an upturn and too many are stale and waiting how their commercial sector is going sometimes in the near future, without too much thought.
How did you optical retailers let an optical manufacturer and supplier become your largest optical retail competitor ?
There have been so many laughs about Coastal making no money on OptiBoard over the years, but now it is owned by an Optical Giant who is no joke.
How did you optical retailers let an optical manufacturer and supplier become your largest optical retail competitor ?
I don't deal with them.
Regards,
Golfnorth
Just another coffin nail - The Swiss have "un-pegged" their Franc from the Euro. "So what?" you might ask. Massive inflation for Euro country visitors during the main ski season, and Swiss goods and services costing much more (think cheese, chocolate, lodging, transportation etc.) everywhere. This will have a ripple-down effect on other economies, and could bring the Euro to its knees. That will in turn affect both the US and Canadian economies when it comes to trade and tourism.
There is a lot more. Here is a comment made in Switzerlands east side:
The decision of the National Bank to abandon the euro minimum price, sweeping the eastern Swiss export industry for great excitement. "With the decision our export capabilities were degraded within a few minutes by 15 to 20 percent," says Andreas Sallmannshausen, President of the Association of Swiss Textiles. Get the overvaluation not weakened, this is life threatening for many companies in the industry.
Many offices these days meeting series to session. Desperately searching for savings - this is after the last three years have already been reduced due to the low euro costs.
In particular, firms that produce in Switzerland and sell in the EU, are under severe pressure. For example, the Frauenfeld sensor technology manufacturer Baumer. Director Oliver Vietze says: "I am a firm believer of manufacturing in Switzerland. However, with this decision, it is not without incisions. "Price increases are not realistic, so do you also think about outsourcing.
These are not isolated cases, as economist Peter Eisenhut says. The Eastern had been hit especially hard because the industry has a high importance and many customers in the euro area is irrelevant. He says: "If the euro exchange rate level off at 1 to 1, a recession in eastern Switzerland will be unavoidable. A substantial rise in unemployment would be the result. "
http://www.tagblatt.ch/ostschweiz/os...120094,4100182
And Then There Is Greece
The recent elections may pull Greece out of the Euro Zone. The newly elected majority (almost) "anti-austerity" party may be another nail in the Euro's coffin. They will have to form a coalition government. It will be interesting to watch it play out. I have a close optical friend who emigrated to the U.S. over 20 years ago, and he reports that his widowed mother's pension has been reduced by over 50% under the austerity measures. It has been especially a hardship for the un-employed youth, and the elderly; naturally there has been a wicked backlash among voters.
Syracuse, N.Y. — The Canadian dollar is slumping and that could spell trouble for Upstate New York businesses that bank on Canadian tourism, including Destiny USA.
The Canadian dollar, also known as the loonie, dropped below 80 cents U.S. for the first time in nearly six years this week, according CBC News. The loonie was close to 95 cents U.S. a year ago.
It now costs more than $1.25 Canadian to buy $1 U.S., according to the CBC.
That means when Canadians come here, it's more expensive for them to shop, dine and stay in our hotels. And it could mean Canadian consumers spend more of their money at home, one analyst told the CBC.
Destiny has been on a relentless Canadian marketing push since its expansion opened and the mall has often trumpeted the amount of business it attracts from Canadian tourists.
Destiny estimates that Canadians account for about 20 percent of the more than 25 million annual visits to the mall. The mall has said Canadians account for about a quarter of its sales.
It's not just Destiny.
Walden Galleria near Buffalo, the Waterloo Premium Outlets and Eastview Mall near Rochester all target Canadian tourists. Turning Stone's new retail development is looking for love from north of the border too.
Plenty of other Syracuse-area businesses benefit from Canadian tourism as well. Hotels, restaurants and other attractions all see Canadian visitors, according to the Syracuse Convention & Visitors Bureau.
The effects of a weak loonie might already be showing up locally. The area has seen some declines in hotel performance lately, which seem to correspond with the currency's dip, said David Holder, president of the visitors bureau.
But Canadians don't make travel decisions based on the loonie alone, he added.
The bureau began an aggressive advertising campaign in Toronto and Ottawa in the last few months and the early returns are encouraging, Holder said. Canadian visits to the visitors bureau website are up dramatically.
Target's decision to close its Canadian stores could also benefit the area as Canadian shoppers flock south to hit up the chain's U.S. locations.
"We got to look at the big picture," Holder said.
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Well, it is good news for those of us who travel frequently to Canada.... but bad news for our local U.S.retailers who depend on Canadian business. I liked it better when we were about par...easy to convert currency and calculate our spending. This summer we will be in the Gaspesie and the Maritimes. Maybe a bargain for us, but harder on the locals.
So I guess this summer the Americans will be back into a cheaper summer holidays as they used to be for years.
However Swiss products as cheese and chocolates will take a large jump in pricing after the new 20% rise of the Swiss franc.
I know it's little solace for our Canadian neighbors... but we are locking in our reservations for the Gaspesie and the Maritimes at about a 25% discount (when currency exchange is factored in). Of course... appenzellar from Switzerland is totally off our menu right now. Ours has to come from Wisconsin.
In the News ................today
In the News ................today
http://www.canadianmanufacturing.com...CMO-EN02092015
Well truly the sky must be falling. I'm going to liquidate everything and hide all the money in my mattress and wait for the inevitable.
I am not sure what your point would be because first off you would have to want to go to those areas and for the most part Quebec and New Brunswick hold no interest. I view them as places to avoid and only places you have to travel through to get elsewhere.
We feel very differently about the Maritimes and the Gaspesie... we love the surroundings, the people, the food, the views, and the activities available. We are not far from the border, so we do enjoy Ottawa, Toronto, and Montreal for 1-2 day trips. Looks like you feel the same way about these parts of Canada as many Americans feel about Kansas and Nebraska.
actually Quebec is an interesting and beautiful province, but I choose not to travel there further, New Brunswick has little to offer, see or do. The rest of the real Maritimes I thoroughly enjoy.
I am also saying that you would have made your trip regardless of the exchange rates. The exchange rates were not the deciding factor but rather only a bonus.
The exchange rates allow us to spend 2 weeks, rather than 10 days.
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