Is Canada moving towards another recession or what?
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Target to discontinue Canada operation, seeks creditor protection...
Target Corp said on Thursday it will cease operations in Canada and has filed for creditor protection for its Canadian subsidiary in a surprise move that could put its 17,600 employees in the country out of work.
The U.S. discount retailer has struggled since its 2013 launch in Canada, and it said in November that it would review the future of its loss-making Canadian business after the holiday season.
Huge supply chain problems left stores thinly stocked, disappointing shoppers who had eagerly anticipated the retailer's move into Canada, where the discount retail space had long been dominated by Wal-Mart Stores Inc.
https://ca.finance.yahoo.com/news/target-discontinue-canada-operation-seeks-133112451.html
Is Canada moving towards another recession or what? retailers, oil prices, house market, etcc
I don't think Target closure has anything to do with the economy. People just didn't like the idea along with other misgivings. Just another retail failure, I'd say.
On the other hand, oil's downward movement might have an impact to the overall economy, but it's going to be good for manufacturing. Toronto home prices are expected to grow about 4%, followed by 2% in Vancouver and 2% in Calgary. So, there goes the recession out of the window.
Additionally, for the existing home owners, there's a silver lining with respect to mortgage interests. You won't see it rising anytime soon now. Albeit, the rate might fall a bit. Hang on tight.
Having said that, general public doesn't have much benefit of falling oil prices. It's like money-in/money-out. Regardless, prices of other products/services are on a high. In BC, we have insurance costs, health plan, transit rates, Hydro that have been planned to go up in 2015. So, no net benefit other than saving time from going across the border to fill up the cheap gas 
. It's still cheaper, but the heck!
Remember, negative impacts to the economy are effective/apparent immediately (Suncor layoffs, etc.), rather than the positive impacts, i.e. benefits to manufacturing and exports.
Last but not the least, Alberta is and will be the hardest hit due to their Govt.'s ineptness all along by not keeping enough money in the coffers of rainy day resource fund. Needless to say, most of the money went into the salaries of politicians/bureaucrats.
There's no recession is in the offing. At least, from my point of view.
Location: Western Hemisphere
Posted on: 15-01-15 13:49:00
Target's shut down is Target's own mismanagement that comes at the expense of the 17K+ employees. People compared the choices and prices at Target USA and Canada and discovered both were pitiful in Canada. Distribution was a factor as well. Target was one of the retailer who blindly believed that what they could do in the US will work in Canada, although product selection and price went down the toilet.
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Dimple2001
Yes, I am sad to see Target go. I found the environment invigorating with quality of the products better than Wal-Mart.
What's next: Best Buy, Future Shop, The Source. It won't be at one go, but the impact of online shopping are clearly visible.
If only Target followed Nordstrom's model of entering Canada with limited stores coupled with a good distribution, the chances of failure would've been slim.
I also think people had an undue expectation of similar pricing between US and Canada stores. Not the fault of Target Canada.
Just heard Sony is also closing down their stores in Canada.
http://ottawacitizen.com/business/local-business/sony-announces-it-will-close-all-sony-stores-in-canada
Absolutely, recession is a given now. Oil price downward trend is in process, & the full impact of this will be felt in the months ahead. Alberta is the ground zero, but transfer payments to Ontario will take a hit.
That's the irony, every few yrs recession hits, & people loose all their rainy day savings whatever little they can afford to save
Quote:
Originally posted by dhaikin
Absolutely, recession is a given now. Oil price downward trend is in process, & the full impact of this will be felt in the months ahead. Alberta is the ground zero, but transfer payments to Ontario will take a hit.
That's the irony, every few yrs recession hits, & people loose all their rainy day savings whatever little they can afford to save
Europe is trying to resort to quantitative easing. However, once the downward spiral starts, there is no stopping this time as the engine of the world would sputter. USA has no chance to reduce the rates as it is already near zero. If recession hits, it is going to hit much harder this time around.
The sign to see is housing prices. If house prices stumble, the domino would fall.
In my opinion, it is still too early to make a call. Lower Oil prices would certainly help Asian economies like Japan, China and India to control inflation and kick start cycle of growth there. However, there is a time lag involved and that is the cause of concern. If something goes drastically wrong during this period of wait, recession would follow. Fortunately for the world, all three Asian economies are headed by very dynamic persons and notwithstanding socialist policies of Obama stunting growth, recession would be avoided.
as far as Canada goes, it has already entered cycle of low growth era due to short sighted policies of Harper. He favored Alberta at the cost of Ontario. Oil prices, after a year are likely to settle at $70 a barrel. Thus Canadian economy is doomed unless Harper loses election. Present opinion poll are in his favor bvs of division betweenNDP and Liberal. I guess Canada would be doomed in next few months and Harper knows that. He is pushing for Spring election precisely for that reason.
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