Minneapolis — Target has selected 84 additional Zellers leases in Canada — putting Target one step closer to opening its first stores in Canada in 2013.
Minneapolis — Target Corporation has finalized its real estate transaction with Zellers Inc. with the selection of 84 additional Zellers leases in Canada, bringing the total number of leases selected, including an initial group of 105 leases selected in May, to 189. From this second group, Target has acquired the leasehold interests for 29 locations, the vast majority of which will open as Target stores beginning in 2013. The remaining leases have been or will be sold to other Canadian retailers or back to landlords.
“Target is excited to take another meaningful step toward our expansion in Canada,” says Tony Fisher, president, Target Canada.
Target announced in January that it would purchase, for C$1.825 billion, the leasehold interests of up to 220 sites currently operated by Zellers Inc., a subsidiary of Hudson’s Bay Company (see related article). In May, Target selected an initial group of 105 leases, spanning all 10 provinces, in conjunction with its first payment to Zellers Inc. The 84 leases announced this week are part of Target’s second and final selection, and include the 39 leases for which Target transferred the rights to Walmart, as announced in June. As part of its transaction with Walmart, Target acquired the lease for one of Walmart’s vacant properties, which will open as a Target store.
Target plans to open 125 to 135 stores in Canada, the majority of which will open in 2013, beginning with the first cycle in March 2013. All selected sites that will become Target stores will be subleased to Zellers and will continue to operate as a Zellers store for some time. For locations that will become Target stores, the majority will be closed for at least 6 to 9 months as they undergo significant remodeling prior to opening. On average, about $10 to $11 million will be invested in remodeling each location. Target plans to announce the locations of its March 2013 store openings in the coming months. Stores in subsequent opening cycles will be announced throughout 2012.
Minneapolis-based Target Corporation currently has 1,762 stores across the United States. The company will open its first stores in Canada in 2013. For more information about Target’s commitment to corporate responsibility, visit Target.com/hereforgood.