Target Chooses First Canadian Store Sites
MINNEAPOLIS-Target has selected the initial group of Zellers sites for its first Canadian stores, representing 105 locations in all 10 provinces.
The vast majority of these sites will become Target stores after they receive the necessary construction approval for renovation, and will open beginning in 2013. Target said it expects to close the acquisition of these initial sites soon, and will pay half of the total purchase price of about $1.85 billion. The mass merchant announced the deal to acquire up to 220 Zellers sites in Canada in January.
The company also said it has chosen the location of its Canadian headquarters in Mississauga, Ontario, just outside of Toronto. The choice of headquarters is pending the approval of Target's board of directors.
Each of the selected Zellers sites is subleased to Zellers and will operate as a Zellers store for some time, Target said. Six to nine months prior to opening as Target stores, the majority of the stores will be closed for "significant remodeling," costing an average of about $10 million for each location, the company said.