Zellers marked for Target revamp

Penticton Zellers has been selected in Target Corp.’s final leases of stores in Canada.

Customers come and go at the Penticton Zellers store this week. Target Corp. has announced it will include the Penticton location in its Canadian leases with most openings scheduled for 2013.

Customers come and go at the Penticton Zellers store this week. Target Corp. has announced it will include the Penticton location in its Canadian leases with most openings scheduled for 2013.

Penticton Zellers has been selected in Target Corp.’s final leases of stores in Canada.

Last week, the final selection of stores was announced adding 11 locations to British Columbia including Penticton, Kelowna, Kamloops, Salmon Arm, Prince Rupert, Dawson Creek and Victoria. The total number of leases in Canada, since the initial group of 105 leases selected in May, is now at 189.

Target said the vast majority of the stores will open in the beginning of 2013.

“Target is excited to take another meaningful step toward our expansion in Canada,” said Tony Fisher, president, Target Canada. “We look forward to delivering a superior shopping experience for our guests throughout Canada and building on our strong reputation as a good neighbour and partner in the communities in which we do business.”

All selected sites that will become Target stores will be subleased to Zellers and will continue to operate as a Zellers store for some time. For locations that will become Target stores, the majority will be closed for at least six to nine months as they undergo significant remodelling prior to opening. On average, about $10 to $11 million will be invested in remodeling each location. Target plans to announce the locations of its March 2013 store openings in the coming months. Stores in subsequent opening cycles will be announced throughout 2012.

Each Target store in Canada will employ approximately 150 to 200 team members. Target will also engage with Zellers associates to make it easy for them to apply for jobs at Target. Canadians interested in working for Target are encouraged to visit Target.ca/careers to learn more about job opportunities and Target’s work environment.

Also announced last week is that Sobeys Inc. and Target Canada Co. have entered into a long-term wholesale distribution arrangement that will see Sobeys supply Target stores in Canada with select food and grocery products.

Beginning in early 2013, Sobeys will supply Target’s food and grocery requirements for frozen, dairy and dry grocery products, inclusive of both national brand and Target’s private label brands.

“We are pleased to welcome Target as a valued wholesale customer. The associated increased revenue, and the supply chain efficiencies which will lower our costs, will continue to strengthen our competitive position,” said Bill McEwan, president and CEO, Sobeys Inc.

Through its coast-to-coast network of 23 food distribution centres, Sobeys will be able to provide the same high level of service to Target’s store network as it does to its own network of 1,300 stores across the country.

The two companies have also agreed to leverage each other’s distribution networks to mutually reduce transportation expenses.

In addition to the wholesale distribution arrangement, both companies will also explore additional supply chain opportunities. Sobeys owns or franchises more than 1,300 stores in all 10 provinces under retail banners that include Sobeys, IGA, Foodland, FreshCo, Price Chopper and Thrifty Foods, as well as Lawtons Drug Stores.