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Author Topic: Target buying Zellers leasehold interests  (Read 7749 times)

Pete The Greek

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Target buying Zellers leasehold interests
« on: January 13, 2011, 09:51:56 AM »

Looks like Zellers will become Woolco to Wal-Mart in a few years.

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

Target (NYSE:TGT) is spending $1.83 billion to buy up the leasehold interests in 220 Zellers stores from the storied Hudson's Bay Company.

Though Target says 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.

The U.S. retailer, 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 says that under the agreement Zellers will continue to lease the locations from Target and run them as Zellers stores "for a period of time."

http://www.ctv.ca/CTVNews/TopStories/20 ... da-110113/

Edit:  In typical CTV fashion, they have changed the article to include:

Quote
After years of anticipation Canadian consumers can soon set their sights on a new shopping destination, as U.S. discount retailer Target has announced plans to set up its stores north of the border.

Target Corporation said Thursday that it is paying the Hudson's Bay Company $1.825 billion to acquire the leasehold interests in 220 Zellers locations across Canada.

Target says the deal doesn't mean an immediate end to the Zellers brand, but is rather the first step in opening between 100 and 150 of its own stores here by 2014.

Although the money is expected to change hands in May and September of this year, "Zellers Inc. will sublease these sites from Target and continue to operate them under the Zellers banner for a period of time," the company said in a statement announcing the deal Thursday.

According to Target's chairman and CEO, his company's first move outside the U.S. will be a boon for Canadian consumers interested in a "superior shopping experience."

"We are very excited to bring our broad assortment of unique, high-quality merchandise at exceptional values and our convenient shopping environment to Canadian guests coast-to-coast," Gregg Steinhafel said in a press release promising "a more robust Target presence in Canada over time."

Commenting on the deal in a statement Thursday, Hudson's Bay Company Governor Richard Baker said, "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."

Target expects to spend approximately $1 billion to remodel and reopen the existing Zellers stores under its own brand. The company also says it will have hired up to 20,000 people once its stores are operational.

The Minneapolis-based company's more than 1,700 stores across the U.S. have long been a favourite of shoppers on the hunt for what the retailer has dubbed "discount-chic".

While speculation has been rife the company was considering a move north of the border for some time, Target only confirmed its international expansion plans in June of last year.

It had been stymied, however, by the hunt for suitable locations, and most recently, the economic slowdown.

Baker, whose U.S.-based real estate development company NRDC Equity Partners LLC enjoys strong ties with many of the biggest retailers south of the border, paid $1.1 billion to acquire the Hudson's Bay Company in 2008.
« Last Edit: January 13, 2011, 10:39:53 AM by Pete The Greek »
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bandonov

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Re: Target buying Zellers leasehold interests
« Reply #1 on: January 13, 2011, 10:23:10 AM »

FINALLY!!!! Now we need to get a ROSS store!
« Last Edit: December 31, 1969, 07:00:00 PM by Guest »
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Stealth Viper

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Re: Target buying Zellers leasehold interests
« Reply #2 on: January 13, 2011, 10:38:29 AM »

This has seriously bummed me out. Zellers is the best place to shop.
« Last Edit: December 31, 1969, 07:00:00 PM by Guest »
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Quote from: \"Pete The Greek\"
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Pete The Greek

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Re: Target buying Zellers leasehold interests
« Reply #3 on: January 13, 2011, 10:44:18 AM »

I rather have Macy's open up in Canada.  With the economic problems in the States the last few years, I managed to buy two great suits and two dress coats from Macy's at far cheaper prices than Canadian retailers.  I must have saved at least $1,000.
« Last Edit: December 31, 1969, 07:00:00 PM by Guest »
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Pete The Greek

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Re: Target buying Zellers leasehold interests
« Reply #4 on: January 13, 2011, 10:46:11 AM »

Quote from: "Stealth Viper"
This has seriously bummed me out. Zellers is the best place to shop.

Agreed.  But some of the older ones need a renovation enema. 
« Last Edit: December 31, 1969, 07:00:00 PM by Guest »
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THE Mike™

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Re: Target buying Zellers leasehold interests
« Reply #5 on: January 13, 2011, 11:11:53 AM »

Quote from: "bandonov"
FINALLY!!!! Now we need to get a ROSS store!

I assume you're excited because of exclusives? Let me remind you, Walmart and TRU are also in the U.S. and Canada - and 9/10 times we do not get the exclusives up here from those stores either.

As for Zellers going bye-bye.... I'm ticked as, like Stealth, I think it's an awesome place to shop.

I will miss it just as much as these places:







And others such as Robinson's, Toy City, and Bargain Harold's.
« Last Edit: December 31, 1969, 07:00:00 PM by Guest »
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5h4rK

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Re: Target buying Zellers leasehold interests
« Reply #6 on: January 13, 2011, 11:16:40 AM »

Thx for the news Pete.. don't know if it's good or not for us but only time will tell..
I want my good ol'    ;D
« Last Edit: December 31, 1969, 07:00:00 PM by Guest »
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bandonov

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Re: Target buying Zellers leasehold interests
« Reply #7 on: January 13, 2011, 11:19:20 AM »

I miss Towers, but I live in a area that has no Zellers around me.  I have 4 Walmarts, no Zellers.  
« Last Edit: December 31, 1969, 07:00:00 PM by Guest »
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bandonov

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Re: Target buying Zellers leasehold interests
« Reply #8 on: January 13, 2011, 11:21:31 AM »

The other one missing in the list was Simpsons!

EDIT: HBCZellers is owed by a US company, so they could have changed the name at any time. 
« Last Edit: January 13, 2011, 11:28:55 AM by bandonov »
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morgardee

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Re: Target buying Zellers leasehold interests
« Reply #9 on: January 13, 2011, 11:28:05 AM »

I swear I must have 4 or 5 Zellers in K-W alone, never mind Guelph or Cambridge.

I guess it's time to cash out all those Club Z points. I know I can use them at The Bay but that place is way to expensive and filled with old ladies.
« Last Edit: December 31, 1969, 07:00:00 PM by Guest »
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5h4rK

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Re: Target buying Zellers leasehold interests
« Reply #10 on: January 13, 2011, 11:36:42 AM »

Quote from: "morgardee"
...and filled with old ladies.

Mmmmmmm.. [sub:3mc7lt25]and they smell good too, eh?[/sub:3mc7lt25]
You know you love 'em, stop complaining..  ;D
« Last Edit: December 31, 1969, 07:00:00 PM by Guest »
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Pete The Greek

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Re: Target buying Zellers leasehold interests
« Reply #11 on: January 13, 2011, 11:40:45 AM »

Quote from: "bandonov"
The other one missing in the list was Simpsons!

EDIT: HBCZellers is owed by a US company, so they could have changed the name at any time. 

Your right.  It was bought by Lord & Taylor in 2008.  There was talk of changing The Bay to this name but come on.  To change a brand name that has been established in Canada for over 300 years to this retarded name would have been a joke.  
« Last Edit: December 31, 1969, 07:00:00 PM by Guest »
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