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Target To Buy Zellers Stores For $1.8 Billion
by Art
Jan 13, 2011
U.S. retailing giant Target Corp. said Thursday it is buying more than 200 Zellers Inc. stores ahead of its much- anticipated arrival in Canada.

The deal with Hudson's Bay Co., which owns Zellers, will see it pay $1.8 billion to acquire the leasehold interests in as many as 220 sites now operated by Zellers.

Target said it will now be able to open its first Canadian stores starting in 2013. It plans to open 100 to 150 outlets throughout the country in 2013 and 2014, laying the foundation for what it called a "more robust presence" over time.

Zellers will sublease these sites from Target and continue to operate them under the Zellers banner for a period of time. Target said it will invest more than $1 billion renovating the leased locations.

"This transaction provides an outstanding opportunity for us to extend our Target brand, Target stores and superior shopping experience beyond the United States for the first time in our company's history," Gregg ...See More
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