Friday, January 14, 2011

Target Takes Over Zellers Locations - Bonjour Canada!

Target (that's Tar-jhay to loyal customers) will be buying the leases of more than 200 Zellers stores throughout Canada. (The image shows the announcement on the Target Web site.)

This is a good expansion move for Target. Canada should be a great market for Target's stylish private label brands and its well-edited mix of merchandise.

Here's what Professor Ken Wong told the Toronto Star about the Target-Zellers deal:
“Zellers has been able to negotiate long term leases as affordable rates so a lot of this takeover is about location, location, location.”
Wong is entirely correct. Target wants high-traffic locations, and Zellers has 'em, so the deal is a win-win for both sides--as well as for Canadian customers, many of whom know the Target name. (Target's HQ town isn't that far from the Canadian border, of course.) Bonjour, Canada!

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