Zellers for sale!

[cobralegion]

Looks like Zellers may be about to be sold to Target.

CBJ – Jan. 12 – Middle-market retail chain Zellers could be sold to the highest – and likely American – bidder, according to a report today in the Globe and Mail.
Richard Baker, the real estate magnate who serves as CEO of Hudson's Bay Co., is eyeing buyers for some of HBC's Canadian outlets, particularly Zellers locations, according to the Globe. An announcement on a sale could come as early as this week, although nothing is set in stone, unnamed sources said in the report.

U.S.-based retail chains mentioned as possibly interested in Zellers' retail space include Target Corp., Kohl's and Marshalls. Wal-Mart Stores Inc., already well-established in Canada, could also pick up some of Zellers' 280 stores in an expansion bid.

Baker declined to comment yesterday on the story, the Globe said. A representative for Kohl's declined to go into specifics on Canada, but Target spokeswoman Amy Reilly told the Globe the chain is “focusing our (expansion) efforts on the immediate term on Canada.”

http://w w w.canadianbusinessjournal.ca/business_news/canadian_business_news/12_01_retail_chain_zellers_up_for_sale_report_11.h tml

[tekkamanraiden]

If that mean that they start managing their stores better, I'm all for it. Walmart could use some competition up here.

[Super_Megatron]

Target is already scheduled to open stores in a couple years, I look forward to their expansion as they have a great selection of Action Figures.

[tekkamanraiden]

Target is already scheduled to open stores in a couple years, I look forward to their expansion as they have a great selection of Action Figures.

Is that actually confirmed or still just rumored? A quick search on google seems to indicate they're thinking about it, just like they have been for the last 15 years.

[cobralegion]

Its official!!
U.S. retailer Target said Thursday it is buying the store leases of Canadian discount retail chain Zellers from Hudson's Bay Co. for $1.8 billion.

Under terms of the deal, Minneapolis-based Target will pay two payments of $912.5 million in cash, in May and September 2011, to acquire the leasehold interests of 220 Zellers locations in Canada.

The Zellers locations will continue to exist under that brand name for "a period of time," HBC said in a release. But Target will convert 100 to 150 of those Zellers locations to Target stores in 2013 and 2014 and sell the rest of the current Zellers network of store leases to other retailers.

"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," HBC governor Richard Baker said in a release.

A typical U.S. Target location employs between 100 and 200 people, so the deal should see the creation of some jobs. And Target estimates it will make an aggregate investment of more than $1 billion updating and renovating Zellers locations.

Baker's company bought all of HBC in 2008 for $1.1 billion. Selling the underperforming Zellers unit at a profit allows the company to focus on the iconic Bay brand, an initial public offering of which is much anticipated.



Read more: http://www.cbc.ca/money/story/2011/01/13/target-zelles-takeover.html#ixzz1AveXyq5q

[pattycakeman]

I dont know how i feel about this. On one hand its sad to see one of the last canadian stores of its kind be sold to an american company, but target will probably bring better management of the store. Zellers has been pretty good for toy selection the past couple years in my opinion, probably a third of my retail figures have been bought from there. Just as much as walmart and TRU. The fond memories of getting our childhood toys from there will be all we have left!

[Croaker]

As long as they carry Target exclusives I'll be happy.

[pud333]

I dont know how i feel about this. On one hand its sad to see one of the last canadian stores of its kind be sold to an american company, but target will probably bring better management of the store. Zellers has been pretty good for toy selection the past couple years in my opinion, probably a third of my retail figures have been bought from there. Just as much as walmart and TRU. The fond memories of getting our childhood toys from there will be all we have left!

I feel the same way. Personally, for me, it changes nothing, since I go to the states every three or four months and usually hit up a bunch of Targets in the process. And while their toy selection is good / better than Zellers, it doesn't change enough for me to want another American retailer in Canada. However, I rarely go to Zellers. Every time I go to one it is dirty and dark and just a complete mess. I won't miss Zellers too much, but I agree, I have had some good childhood memories from Zellers. I think I bought my G1 Jetfire from there.

[4lott]

Anyone here remember when Wal-Mart took over Woolco/Woolworth stores? It took a little while but more plentiful stock started rolling in year round. While I am excited I think it's more because it will be nice to have a change and more competion in Canada. More to the point, hopefully Target will order lines that Zellers has ignored.

[Zone55555]

I'm happy. Targets are always brighter and cleaner than Zellers, and while Zellers has been on a roll of picking up Target Exclusives, they tend to do it months after the fact and usually only what unsold stock they can snap up at a huge discount - only to then resell it here at or above the prices they were on down in the states.

I'll still be hitting the states routinely to sweep a dozen or so Targets and Walmarts for toys, but then I also get to hit White Castle and other nifty places to spice up the trip in the process.

[Prowl_2009]

Awesome news! :D

[Cpl. Chrissandwich]

Yes all awesome news in terms of collecting goes and such, but terrible news in terms of Canada. As Canadians we are slowly losing what we can call our own. First its this then its going to be Canada(just spit balling). Im sorry but Im against this(was when HBC was taking over). And Im against any other American company takeover Canadians companies.

[cobralegion]

Yes all awesome news in terms of collecting goes and such, but terrible news in terms of Canada. As Canadians we are slowly losing what we can call our own. First its this then its going to be Canada(just spit balling). Im sorry but Im against this(was when HBC was taking over). And Im against any other American company takeover Canadians companies.

I agree. It will be good to have some competion for Walmart but its too bad a Canadian company couldn't have done it. I miss the days of being able to shop at Woolco, Woodwards, Eatons, Consumer Distributing, Kresges, Toys and Wheels, Tops in Toys....so many good stores gone.

[CardiacArrest]

i hope that the zellers stores, during the convert, will start stocking DCUC figures. We need more of those. IMO

[4lott]

I miss Toyville and Consumers Distributing also cobralegion. Unfortunately for Zellersit's parent company HBC was bought over by an american company some years back.

[Cpl. Chrissandwich]

I miss Toyville and Consumers Distributing also cobralegion. Unfortunately for Zellersit's parent company HBC was bought over by an american company some years back.

Yp that made me very mad. I remember reading somewhere that there was a contract between HBC and the Canadian government stating that HBC cannot be sold to a foregin company. Im pretty sure people heard about this because wasnt the government trying to get HBC back?

[Napseeker]

Well Zellers you were starting to improve your selection of SW toys, but I am quite happy to hear about the takeover. I think this will lead to a much cleaner, better stocked store with more ordering of product to make it competitive with other retailers like TRU and Walmart. Great for me especially since I hated missing out on those US exclusives.

No regrets here, if you can't give customers what they want and at great pricing, you die off like the dinosaurs.

[cobralegion]

I miss Toyville and Consumers Distributing also cobralegion. Unfortunately for Zellersit's parent company HBC was bought over by an american company some years back.

Yeah its been an American company for a while now so I think thats why its not as big a shock that its changing to Target.

It'll be nice to have more access to Target brands and exclusives but it wont make up for the overall lack of places to shop. I remember when I first started collecting, you could go to 10 different retailers to find what you wanted. Especially with regards to toys. The Bay, Sears, Eatons, Woolco, Woodwards, CD, Kresges, etc all had actual toy departments and many were full of Joes, Star Wars, and whatever else was hot that year.
Times change though and thankfully we have the internet to make up for it. I get at least 60% of my toys online now. Still, it was cool seeing all those toys in the stores. :)

[ambasah]

great news for me. and has been stated, zeller's has been american owned for many years already.

[lars573]

I agree. It will be good to have some competion for Walmart but its too bad a Canadian company couldn't have done it. I miss the days of being able to shop at Woolco, Woodwards, Eatons, Consumer Distributing, Kresges, Toys and Wheels, Tops in Toys....so many good stores gone.
Woolco=American company

[CobraCommander]

Don't forget ToyCity :)

Gebus that some killer profit, HBC bought for 1.1 B then only Zellers portion sold for 1.8 B!

[cobralegion]

Woolco=American company

True but the US version went under in 1982 while in Canada they remained open until 1994. So I consider the ones I remember as Canadian stores.

[lars573]

Not me. I was never even in such a place. I only knew of where one was.

[pud333]

I miss Toyville and Consumers Distributing also cobralegion. Unfortunately for Zellersit's parent company HBC was bought over by an american company some years back.

I totally forgot that even happened. :argh:

Whatever. At this point, I rarely buy toys from brick and mortar businesses anymore. Everything I buy, from GI Joes to the Japanese exclusives are bought online now. Too lazy to go hunt. Except when I buy stuff for my nephews, but they're 3 and 1 years old respectively, and they can be entertained by a cardboard box. I bought a revoltech from a specialty store in Richmond last week, but before that, I can't remember the last toy I bought at retail.

EDIT: Oh wait. Last time I went to the states, I bought a bunch of Joes at retail, but that was months ago. And at Target, no less. :straightface: