South Oakville/Hopedale Mall gets slammed by Target store closing

No closing date has been set for Oakville's Target.

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South Oakville/Hopedale Mall gets slammed by Target store closing
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Nolan A Machan

Nolan A Machan

Nolan Machan is the Publisher of OakvilleNews.Org and has over 41 years of local Oakville knowledge. He is committed to providing Oakville residents with the most up-to-date information about our great town.

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This morning, January 15, 2015 Target Corporation announced its plans to discontinue operating stores in Canada. They already have filed for bankruptcy protection. This will be a major hit for the Oakville South/Hopedale Mall that now will  have only Metro, Tim Hortons, and Shoppers Drug Mart as anchor tenants. Recently the Mall saw the additional loss of long time tenant, El Spero – which after being asked to leave by the landlord has found a new home in Bronte Village. 

“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,” said Brian Cornell, Target Corporation Chairman and CEO.

Target employs about 110 people out of the Oakville location and has a total of 133 stores with 17,600 employees across Canada. The court has been asked to consider an application by Target to set aside $70 million in an Employee Trust. Should the Trust be approved it would provide most employees with a minimum of 16 weeks compensation, including wages and benefits for employees who will not be required during the winding down of the Canadian operations. Stores will remain open during the liquidation process, but likely will be amalgamated as stock dwindles.

Pharmacy Clients
People who regularly have their prescriptions filled by the Target Pharmacy Department, can rest assured that clients will be notified by phone with as much notice as possible so that they can make alternate arrangements. Pharmacies in Target are separately owned, and will not fall under the same program as outlined by Target for store employees.

At this time the Oakville staff have not been given a closing date, and further information will be provided by senior staff at a future date.

“The Target Canada team has worked tirelessly to improve the fundamentals, fix operations and build a deeper relationship with our guests. 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,” said Cornell. “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.”

Target Corporation’s cash costs to discontinue Canadian operations are expected to be $500 million to $600 million, most of which will occur in the Company’s 2015 fiscal year or later. The Company has sufficient resources to fund these expected costs, including cash on hand and ongoing cash generation by its U.S. business.

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Readers Comments (6)

  1. Joe Murphy says:

    So…. how long before the mall gets sold? I guess the strategy of “kick everyone out for renos and hope target draws enough traffic to attract new stores” was maybe not such a great idea.

     Reply
  2. Ron Watson says:

    Since obviously they didn’t have many shopping there, and their store shelves were always near empty, this should not come as a surprise to anyone. As for the mall itself, yes it is quite low on tenants at this time, but clearly Target never turned out to be the big draw that it was intended to be. As for anchors, our bowling centre (Hopedale Bowl) has been at this location for 55 years – before most of the mall was even built above us. We have strong league support, a good reputation with the public, and a long proven history in this community. We consider ourselves to be one of the anchors of this property – and this community.

     Reply
  3. Bill wright says:

    I agree that this will hurt the mall and probably already hurt its reputation. The mall needs to attract the people in the south oakville community by attracting a retail store outlet that best fits the community around it. Unfortunately Taget’s strategy did not pan out or fit the surrounding community ( obviously by it’s closure). This will be tough on the mall but doing some extensive homework and offering some great incentives to attract, would be the strategy I would take if I was in their position..

     Reply
  4. John McLaughlin says:

    Hopedale Mall – under it’s former namesake is an Oakville jewel in need of proper development. My plan is to add a “big box” home improvement store given all the revitalization occurring in South West Oakville.

    People still prefer to visit businesses(over the internet) to buy groceries, exercise, purchase items, eat-out, buy clothes, bowl and to obtain a variety of services.

     Reply
  5. nick says:

    the mall is not very well marketed or managed under the new owners. el spiro was not the only to be asked to leave due to target. mall management chose to lose long term viable tenants to please target – which was risky from the start. now they lost target (no surprise) and many stores are now gone. all i see there is orange walls covering up empty stores. the only boone so far is Winners.

     Reply
  6. Dante says:

    I’ve lived in the area north of Hopedale Mall my whole life, and can remember tenants like the Second Cup and Hopedale Video & Game. The mall had much higher traffic then and there was a greater variety of retail locations. The new ownership has a delusional belief they can somehow turn a neighborhood mall into a shopping destination, when even Oakville Place doesn’t have even moderate traffic on weekends. People in the adjacent community do not go there to shop, it is primarily a destination for seniors and local kids/teens. Lowering the rent to realistic levels and fostering better relationships with existing and potential tenants would both serve the community and allow the owners to at least make money on what are currently vacant locations.
    I counted at least 14 vacancies the other day, about 40% of the mall (Not counting target), which is unacceptable. Responding to market changes is necessary to end the gross mismanagement of the property.

     Reply



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