January 13, 2011
US retail giant Target (TGT.N) is doing some moving and shaking in Canada’s retail market. It has just agreed to purchase Zellers for $1.8 billion.
The purchase will give Target the leasehold interests in as many as 220 sites across Canada. Over the past several months, Target has been talking a big game about entering Canada with hundreds of stores and its now backing its claims with hundreds of venues and almost 2 billion Benjamins.
Target will open its first Canadian stores beginning in 2013. For Canadians concerned about their neighborhood Zellers shutting down, don’t fret, yet. Zellers will sublease its stores from Target and continue to operate them under the Zellers banner for quite some time and probably until they’re converted into Targets.
In addition to its purchase of Zellers stores, Target expects to spend an additional $1 billion on new store renovations and construction – getting them in tip Target shape. The company plans to open 100 to 150 Target stores throughout Canada in 2013 and 2014.
Woah – here comes Target.