U.S. discount retailer Target plans to open more than 100 stores in Canada over the next few years, giving Canadian shoppers another option when it comes to finding great deals.
Target Corp. announced Thursday that it's paying the Hudson's Bay Company $1.825 billion to acquire the leasehold interests in 220 Zellers locations across Canada. HBC was purchased by an American company in 2008.
However, Target says the deal won't mean an immediate end to the Zellers brand.
Although the Zellers stores will be purchased by Target this year, the stores will continue operating under the Zellers banner for a period of time. There are currently 280 Zellers stores across Canada, including seven in Ottawa and three in Gatineau.
Target, which is known for offering chic discount products, plans to open between 100 and 150 of its own stores in Canada in 2013 and 2014.
Target's chairman and CEO says the move will help Canadian consumers find a "superior shopping experience."
Target expects to spend approximately $1 billion to remodel and reopen the existing Zellers stores under its own brand.
With files from The Canadian Press
