January 13, 2011 by Joseph Krohn
Today, brought the announcement that the Hudson Bay Company was selling its Zellers department store chain to Target for $1.8 billion. Target plans to replace 150 of Zellers’ 276 stores with Targets, and then sell of the rest of the leases to other retailers. They announced that Zellers will exist for a period of time, until Target it able to start converting stories in 2013-2014.
HBC governor Richard Baker relased: “This transaction provides attractive long-term value and will allow us to invest substantial capital into our department store and specialty store businesses to continue to drive growth.” It would seem that Zellers is being sold to benefit “The Bay” department stores.
Target is similar in style to Zellers:
- both stores take advantage of the colour red.
- both are not overlly crowded with customers.
- both seem to be around the same price range.
- both seem to have a hard time surviving against Wal-mart.
It would seem that a change of names, may be the main result from this purchase.
It is disheartening to see Zellers close. It is the second largest department store chain across Canada. Zellers has been there since 1931, as a retailer dedicated to helping Canadians to spend their pay cheque. Yet another Canadian institution lost to free trade…