Target Finalizes Real Estate Transaction with Selection of 84 Additional Zellers Leases

Target Corporation (NYSE: TGT) is pleased to announce today that it has finalized its real estate transaction with Zellers Inc. with the selection of 84 additional Zellers leases, bringing the total number of leases selected, including an initial group of 105 leases selected in May, to 189. From this second group, Target has acquired the leasehold interests for 29 locations, the vast majority of which will open as Target stores beginning in 2013. The remaining leases have been or will be sold to other Canadian retailers or back to landlords.

 

“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 neighbor and partner in the communities in which we do business.”

 

Target announced in January that it would purchase, for C$1.825 billion, the leasehold interests of up to 220 sites currently operated by Zellers Inc., a subsidiary of Hudson’s Bay Company. In May, Target selected an initial group of 105 leases, spanning all 10 provinces, in conjunction with its first payment to Zellers Inc. The vast majority of those sites will become Target stores beginning in 2013. The 84 leases announced today are part of Target’s second and final selection, and include the 39 leases for which Target transferred the rights to Walmart, as announced in June. As part of its transaction with Walmart, Target acquired the lease for one of Walmart’s vacant properties, which will open as a Target store. A full list of the addresses included in Target’s second selection accompanies this release.

 

Target plans to open 125 to 135 stores in Canada, the majority of which will open in 2013, beginning with the first cycle in March and continuing with four subsequent cycles later in the year. 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 remodeling 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.

 

Target is excited to build its talented and dedicated team in Canada. The company has already begun to hire team members for positions at its Mississauga headquarters location and Target looks forward to beginning the store hiring process in 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 fun, collaborative work environment.

 

The statements on the number and timing of Target store openings in Canada and the average investment in each location are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements speak only as of the date they are made and are subject to risks and uncertainties which could cause the company's actual results to differ materially.  The most important risks and uncertainties include the risks described in the Risk Factors section of the company's Form 10-K for the fiscal year ended January 29, 2011.

Minneapolis-based Target Corporation (NYSE:TGT) serves guests at 1,762 stores across the United States and at Target.com. The company will open its first stores in Canada in 2013. In addition, the company operates a credit card segment that offers branded proprietary credit card products. Since 1946, Target has given 5 percent of its income through community grants and programs; today, that giving equals more than $3 million a week. For more information about Target’s commitment to corporate responsibility, visit Target.com/hereforgood.

 

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