Target finalizes its real estate in Canada; signs deal with Sobeys
Minneapolis -- Target Corp. said Friday that it has finalized its real estate transaction with Canadian retailer Zellers with the selection of 84 additional Zellers leases. Target Canada will open between 125 and 135 stores, most by 2013. The discounter also entered into a deal with Sobey’s, Canada’s second largest supermarket chain, to supply its stores with food.
The latest lease acquisition brings the total number of leases selected to 189. From the 84 latest leases, Target said it has acquired the leasehold interests for 29 locations, the vast majority of which will open as Target stores beginning in 2013. The remaining leases have been or will be sold to other Canadian retailers or back to landlords.
Target announced in January that it would purchase, for $1.84 billion, the leasehold interests of up to 220 sites currently operated by Zellers, a subsidiary of Hudson’s Bay Co. In May, Target selected an initial group of 105 leases, with most rebranding to Target stores beginning in 2013.
The 84 leases announced Friday are part of Target’s second and final selection, and include the 39 leases for which Target transferred the rights to Walmart, as announced in June. As part of its transaction with Walmart, Target acquired the lease for one of Walmart’s vacant properties, which will open as a Target store.
Target also said Friday it had signed a long-term wholesale supply agreement with Sobeys to supply its stores with select food and grocery products.