Target to acquire Zellers stores in Canada

9 July 2012 (Last Updated July 9th, 2012 07:00)

US-based discount chain Target will now complete the acquisition of Zellers stores in Canada, following an approval from Canadian federal government.

US-based discount chain Target will now complete the acquisition of Zellers stores in Canada, following an approval from Canadian federal government.

Target plans to open 125 to 135 stores in Canada starting in March or April 2013.

The approval was received after a review conducted under the Investment Canada Act.

Target plans to invest CAD3.5bn ($3.4bn) in its Canadian stores and hire up to 25,000 people, or about 100 to 200 employees at each store by 2015.

Target will have to sell Canadian cultural products such as Canadian music, DVDs, and books at its stores and the company will have the Canadians participate and invest in cultural events and organisations.

The Canadian federal government has in the past required a foreign company to sell Canadian cultural goods in exchange of entering its market.

Target Canada spokeswoman Lisa Gibson said that the company will be sharing details around their merchandising strategy at a later date.

"We have had ongoing conversations with our suppliers, including domestic suppliers, for some time now," Gibson said.

The company currently operates nearly 1,770 stores in 49 states of the US.

The Minnesota-based retailer had announced in January 2011 a $1.83bn deal to acquire the leases on up to 220 Zellers stores from Hudson's Bay Company.

Zellers, a subsidiary of the Hudson's Bay Company (HBC), is the mass merchandise retailer which operates 279 outlets across the nation. It retails products such as clothing, grocery, footwear, bedding, furniture, jewelry, beauty products, electronics, toys, sports equipments, appliances, and housewares.