Target aims for Canada with $1.83 billion takeover of Zellers

Zellers stores across Canada will disappear in a couple of years, as major U.S. retailer Target moves in. Target is spending $1.83 billion to buy up the leasehold interests in 220 Zellers stores from the storied Hudson’s Bay Company. The deal appears to be a lucrative one for U.S. owner Richard Baker who bought the […]

Zellers stores across Canada will disappear in a couple of years, as major U.S. retailer Target moves in.

Target is spending $1.83 billion to buy up the leasehold interests in 220 Zellers stores from the storied Hudson’s Bay Company.

The deal appears to be a lucrative one for U.S. owner Richard Baker who bought the Hudson’s Bay Co. in 2008 for just $1.1 billion. “This transaction provides attractive long term value and will allow us to invest substantial capital into our department store and specialty store businesses to continue to drive growth,” said Baker in a release. Baker’s company NRDC Equity Partners also owns high-end fashion retailer Lord & Taylor.

Though Target said the Zellers brand won’t disappear immediately, the deal is the first step in a plan to open between 100 to 150 Target stores by 2013.

According to the Globe and Mail, the remaining Zellers stores will be auctioned off to other, potentially international retailers like Kohl’s and J.C. Penney.

Target, which helped coin the phrase “discount chic,” has long been exploring opportunities north of the border.

However it hit several roadblocks that run the gamut from unattractive real estate locations for potential stores to the economic slowdown that reined in consumer spending.

Target said that under the agreement Zellers will continue to lease the locations from Target and run them as Zellers stores “for a period of time.”

Brands Articles

Reebok pushes toughness with ‘Be More Human’

Campaign delivers newly defined brand focus to consumers

Stone Canoe slings Singapore
to U.S. travelers

A new online campaign is 'very very' eager to turn stopovers into vacations

Kill the Goose,
Kill the Golden Egg (Column)

Tony Chapman says social media is ruining the spectacle of the Super Bowl ad

Campbell contest wants Canadians to flip their lids

New contest will have shoppers looking under their lids to win prizes

Hall of Legends 2015:
Luc Beauregard

Valérie Beauregard on her father's influence and legacy as a king of PR

Hall of Legends 2015:
Stephen Graham

A global leader in moving brands through a crisis

Canadians flock to YouTube to view ads ahead of Super Bowl

Plus, see which Super Bowl spots are trending globally

Uniqlo’s blend-in brand well-poised to win market share

A bit of unfamiliarity goes a long way in managing expectations

A by-the-numbers look at #BellLetsTalk

The results from Bell's 2015 mental health campaign blow away previous years