CHICAGO (Reuters) - Target Corp has picked the first Zellers locations that it plans to buy and will pay half of the C$1.825 billion purchase price in the coming days as it gets ready to open its first Canadian stores in 2013.
The Minneapolis-based U.S. discount retailer also said on Thursday that it would set up its Canadian headquarters in 2012 in Mississauga, Ontario, pending board approval.
Target announced plans to enter Canada, its first international market, back in January.
Last week, Target said that it might close on more Canadian leases earlier than expected, moving some expenses that were expected to hit next year’s profit into this year.
Target is set to buy 105 Zellers sites in all 10 provinces across Canada and convert most of them into Target stores after extensive renovations that will cost an average of $10 million per store. The locations include stores in Calgary, Toronto, Winnipeg and a variety of other cities.