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]

Originally Posted by 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.

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/2011/0...#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]

Originally Posted by 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!

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.