Target Going Canadian

It's official, Target is expanding north of the border, and has agreed to pay C$1.825 billion to purchase the leases of up to 220 stores currently operated by discount store chain Zellers Inc., a subsidiary of the Hudson's Bay Co. Target expects to begin converting the stores, with the first slated to open in 2013.

Zellers stores will continue to lease back the locations from Target as it embarks on its conversion schedule. Target expects to open 100 to 150 Target stores throughout Canada through 2014. It is unclear what will become of the remaining Zellers locations as Hudson's Bay said it will focus on its other divisions including Bay, Home Outfitters and Fields. There are 279 Zellers stores in Canada and selling the leases to 220 of those isn't promising for the chain's future.