U.S. retail giant Target Corp. has named the first 105 locations it will banner after taking over the Zellers chain from Hudson's Bay Co. The stores, including 34 in Western Canada, will open in 2013 after undergoing renovations and rebranding.
B.C. will account for 15 Target stores, including Oakridge Centre in Vancouver, Metropolis at Metrotown in Burnaby, Coquitlam Centre, Scottsdale Mall in Delta, Willowbrook in Langley and Haney Place in Maple Ridge. Abbotsford, Chilliwack, Victoria's Tillicum Mall, Nanaimo and Campbell River will also get stores.
Alberta will have 13 Target stores, including three in Edmonton. There will be four Targets in Winnipeg, and one each in Regina and Saskatoon. The chosen locations will continue to operate as Zellers stores before closing for six to nine months and reopening as Target stores.
RioCan Real Estate Investment Trust, one of Canada's largest retail landlords, said 21 of its 34 locations with Zellers stores were on the initial list.
"This transaction will bring tremendous potential for repositioning and the opportunity to further enhance value and cash-flow growth in our centres," RioCan president and chief executive Edward Sonshine said in a statement.
Primaris Retail Real Estate Investment Trust owns five locations, while Homburg Canada Real Estate Investment Trust owns three spots in Quebec. Morgaurd and Morguard Real Estate Investment Trust own 12 of the mall locations.
Under the deal signed earlier this year to take over up to 220 Zellers locations Target said it will select additional locations this fall. Hudson's Bay has 279 Zellers locations. Stores that Target does not want could be sold or remain in the hands of the Bay. Target said it plans to spend about $10 million on each store to renovate and remodel before opening.
Target has established its 180,000-square-foot Canadian headquarters in Mississauga, Ont., just west of Toronto, which is expected to open next year.
With revenue of more than US$67 billion in its last fiscal year and 1,755 stores in 49 states, Target has approximately 355,000 employees and is the second biggest discount retailer in the U.S. after Wal-Mart Stores Inc.
from Western Investor July 2011
