Thursday May 26, 2011
Cottonwood Mall Gets Anchor
Target buys Zellers, aims to refit stores and open by 2013
Released by Target Corp.
arget Corporation is pleased to announce the selection of its initial group of Zellers sites, representing 105 locations in all 10 provinces across Canada. The vast majority of these store sites will become Target stores after securing the necessary construction approval for extensive renovation and will become Target stores after securing the necessary construction approval for extensive renovation and will open beginning in 2013.
Target expects to finalize the acquisition of these initial sites in the coming days and pay half of the C$1.825 billion purchase price. A full list of the sites in this initial selection, including the 22 property owners and landlords with whom Target has reached lease agreements, accompanies this release. In accordance with its real estate transaction to acquire up to 220 leaseholds from Zellers Inc. announced earlier this year, Target has the right to select up to 110 sites in conjunction with the first payment and will continue to select additional leases in advance of the second payment this fall.
Target also announced today that, pending approval by its Board of Directors next month, it has selected the location of its Canadian headquarters. Target will occupy about 180,000 square-feet of space at 5570 Explorer Dr., Mississauga, ON in AeroCentre V. The building was built to LEED (Leadership in Energy & Environmental Design) gold standard and is owned by Healthcare of Ontario Pension Plan (HOOPP). After some remodeling, the majority of Target's Canadian headquarters team will begin occupying the space in early 2012.
"We are thrilled to share these first details about our planned entry into Canada," said Tony Fisher, president, Target Canada. "We are excited that these initial store sites ensure Target will be represented throughout the country. We look forward to completing our selection process during the next several months, moving us one step closer to delivering the Target brand shopping experience to our Canadian guests."
Target analyzed extensive data on Canadian retail performance, demographics, competition and market potential to identify trade areas which would be well-served by a Target store. Each selected site is subleased to Zellers and will continue to operate as a Zellers store for some time. Six to nine months prior to opening as Target stores, the majority of stores will be closed for significant remodeling. On average, about $10 million will be invested in remodeling each location, which will create a significant number of construction jobs for Canadians. Target store openings will begin in 2013, and a detailed schedule of individual store opening dates will be made available at a later date.
Each Target store in Canada will employ approximately 150 to 200 team members. Target is excited to build its talented and dedicated team in Canada and looks forward to beginning the store hiring process in 2012. Target will also engage with Zellers associates to make it easy for them to apply for jobs at Target.
Minneapolis-based Target Corporation (NYSE:TGT) serves guests at 1,755 stores in 49 states nationwide and at Target.com. In addition, the company operates a credit card segment that offers branded proprietary credit card products. Since 1946, Target has given 5 percent of its income through community grants and programs; today, that giving equals more than $3 million a week.
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