Walmart to replace no-showing Target?

Shape Properties has done an amazing job of keeping details of future Brentwood retail and entertainment tenants from not only the public, but from its current Brentwood Mall tenants as well.  Despite such well-kept secrecy, rumours have begun circulating that Walmart may become a major anchor tenant in the new Brentwood Mall instead of the recently-failed Target which had plans to take up shop in the new development.  Such an entry by Walmart would most likely involve the relocation of the Grandview Hwy location to Brentwood.

Sport Mart and Zellers to close in March

Sport Mart and Zellers at Brentwood Mall will both be closing their doors for good this March.  Zellers has signs that its fixtures and shelves are for sale and Sport Mart has everything discounted at 30% off its lowest price tag on all items.

With Zellers gone and Target preparing to take over the space, I wonder if the existing section that houses Zellers will be torn down and rebuilt as part of the overall expansion of the mall or if it will just be renovated.  The Sport Mart space is near the opposite end of the mall and probably likely will not factor into Phase 1 of the redevelopment.

2015 Target for Brentwood

It has been confirmed that Target will indeed be coming to Brentwood Mall in 2015.  With Zellers slated for closure by 2013 and the Brentwood Mall Redevelopment expected to begin the same year, we can expect either a demolition of the existing building that houses Zellers or an expansion to accommodate a typical Target store.

The following story in The Star indicates that the current unionized staff at Brentwood want to be recognized as a union by the incoming Target Corp.  Target has stated that it will not recognize the union when it comes in.

Here are some improvements to the shopping experience that Target will bring that Zellers has consistently failed at:

1. Price tags on items.
2. Electronic price checkers that actually work.
3. Organized aisles with goods arranged under the correct description and price.  Goods blocking aisles (City safety bylaw infractions) or just strewn about on shelves have been consistent features of the Brentwood Zellers.
4. Better management team that can identify the above 3 issues as areas for improvement.

Target doesn’t want anything to do with ‘depressed’ Zellers

Published on Friday August 17, 2012

Francine Kopun
Business Reporter 

Target wants nothing to do with the old Zellers stores or image – it doesn’t even want its customer lists, according to documents filed with the B.C. Labour Relations Board.

The documents were filed in defence of a claim by the United Food and Commercial Workers Union, which is trying to have Target declared a successor employer at the Brentwood Mall location in Burnaby, set to open as a brand new 160,000 square foot marquis Target store in 2015.

If the claim is successful, it would put Target in the position of having to employ the current Zellers workers at the Brentwood location, who are unionized.

Hearings are scheduled for August 27-31.

Target’s defence against the UFCW application offers a glimpse behind the brand.

Target’s preference in expanding into Canada was to adopt a “Greenfield” approach – completely new constructions. But Target felt that the comparatively intensive regulation of land use in Canada could delay the process.

Purchasing the Zellers leases from HBC for $1.825-billion allowed the U.S. firm to take on leases that in many cases had terms which were well below market value and represented an opportunity for Target to save millions of dollars in rent.

Zellers had approached Target in the past about making a deal.

“Based on overtures from Zellers in the past, Target was aware that Zellers was prepared to consider a transaction that would provide Target with the right to acquire leasehold interests in a portion of Zellers’ sites,” according to the Target statement.

Target plans to completely remodel each former Zellers location, spending $10-$11-million per site.

Zellers and HBC share a client list through their joint customer loyalty program, HBC Rewards, but Target is not acquiring the list.

“When compared to Target’s guests in the U.S., Zellers attracts a different customer base, older and more likely to be ‘empty nesters.’ Zellers customers are also likely to spend significantly less per visit than a Target guest.”

HBC has retained the lists.

Target Canada spokesperson Lisa Gibson says Zellers customers should not infer from this that they are not welcome at Target.

"We welcome any and all guests to shop our stores. We were simply saying in the documents filed that our typical guest demographic is quite different than Zellers typical guest demographic."

Target rumours continue

Well, this will be the last mention of Target in Brentwood until it has been definitively confirmed what will become of Zellers.  Here goes:

It appears that Target may not come to Brentwood after all because it will be too close to it's Target store slated to open in Metrotown.  It's been said that Walmart and Canadian Tire have declined to replace the outgoing Zellers after it closes its doors and although staff at other Zellers locations have been given notices, the staff at Brentwood have not.  However, unionized workers have signed an agreement that ends March 2013. (article below)  This most likely means that Zellers will be closing by March 2013.

Rumour has it that a large grocery store is eyeing the space left behind by Zellers.  A grocery store would definitely be a welcome addition to the area.  Sobeys has been the grocery store rumoured to be interested in Brentwood.

(http://www.ufcw1518.com/node/4158)

Zellers members accept new deal

March 27, 2012

UFCW 1518 members employed at Zellers Brentwood Mall store have voted 89% in favour of terms for a new contract.

Members at this store have been in a difficult situation regarding their future job security with the impending takeover of the company by Target. Highlights of the agreement include signing bonuses, and a store closure agreement. The term of the agreement is retroactive to April 1, 2011 through March 31, 2013.

The Union Negotiating Committee is Caroline Lacroix and Germaine Rion, assisted by Donna Tremblay (UFCW 1518 Staff Negotiator).

Target not coming to Brentwood Mall?

I've been hearing through the grape vine that Zellers will be closing down in 2013. It's also been said that Target will not be going in to replace the outgoing Zellers. Last year, Target Corp. purchased the leases of all Zellers locations across Canada and announced its intention to expand into Canada.  The leases for space not taken up by Target will, according to Target, be sold to other US retailers.