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!