Friday, September 23, 2011

Not clear if Zellers a Target

According to the following Vancouver Sun story, Target Corp has added 84 Canadian Zellers stores to the list of stores either slated to become a Target store or to be sold to another American retailer such as Walmart.  After not making the list earlier in the year, Zellers Brentwood has made the cut this time. However it is not yet clear in the story if it will become a Target store or its lease sold to a competitor.

With Brentwood Mall actively pursuing a massive redevelopment that will transform the mall itself along with its surrounding parking lots into a mixed-use core in the Brentwood neighbourhood, it wouldn't be a surprise if Shape Properties (mall owner) contacted Target Corp to entice it to add the Brentwood Zellers to its list of stores to expand into.  Brentwood Mall will require a commitment from a retail giant such as Target to anchor an expanded and improved Brentwood Mall.

Vancouver Sun Story:

Target finalizes Canadian expansion with 84 additional Zellers leases
Target Corp. said Friday that it has selected its final leases of Zellers Inc. stores in Canada, laying the groundwork for the opening of 125 to 135 Target stores across the country by 2013.
The Minneapolis-based discount retailer said in January that would buy up to 220 leasehold interests of Zellers, a subsidiary of the Hudson’s Bay Co., for $1.825 billion.
On Friday, the final selection was announced, adding 84 more Zellers leases and bringing the total number of selected sites to 189. Those sites that aren’t converted into Target stores either have been or will be sold to other entities, which could include Wal-Mart Stores Inc.
The final list adds 11 locations to British Columbia, including Kamloops, Kelowna, Penticton, Prince Rupert, Salmon Arm, Dawson Creek and Victoria.
On the Lower Mainland, Target has zeroed in on the Brentwood Mall in Burnaby, Lynn Valley Centre in North Vancouver, Central City Mall in Surrey and Lansdowne Centre in Richmond.
Earlier, the company announced that it would take over store leases at 15 Zellers locations in B.C., from Vancouver’s Oakridge Centre, Coquitlam Centre and Metropolis at Metrotown in Burnaby to the Abbotsford Power Centre and Cottonwood Mall in Chilliwack.
The locations were selected after an analysis of trade areas based on demographics, competition and market potential, Target Canada president Tony Fisher said in an interview with The Sun in January.
In a media release issued Friday, Fisher called Target’s most recent announcement “another meaningful step toward our expansion in Canada.”
The company plans to spend up to $11 million to convert the Zellers stores into Targets. Most of them will open in 2013 after a six- to nine-month rehabilitation period.
Until the remodelling begins, the company said, they will be subleased to Zellers and continue to operate as such.
Each Target store would employ 150 to 200 people. Target has already begun the hiring process.
— Vancouver Sun with files from McClatchy Newspapers and ReutersList of Target’s second and final selection of 11 additional Zellers leases in British Columbia (includes potential Target stores and leases sold to other retailers):
4567 Lougheed Highway, Burnaby, BC — Brentwood Mall
11000 8th St., No. 1, Dawson Creek, BC — Dawson Mall
945 Columbia St. W., Kamloops, BC — Sahali Centre Mall
1876 Cooper Road, Kelowna, BC — Orchard Park Plaza
2210 Main St., Suite 100, Penticton, BC — Penticton Power Centre
500 Second Ave. W., Prince Rupert, BC — Rupert Square
8311 Landsdowne Road, Richmond, BC — Lansdowne Centre
1151 10th Ave. S.W., #400, Salmon Arm, BC — Piccadilly Place Mall
10151 King George Highway, Surrey, BC — Surrey Place/Central City
1175 Lynn Valley Road, North Vancouver, BC – Lynn Valley Centre
1610 Hillside Ave., Victoria, BC — Hillside Shopping Centre


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