Canadian REIT news: Walmart buys Zellers space

by creitadmin on June 28, 2011

Back in January, HBC sold the bulk of its weakest chain, Zellers Inc., to U.S. retail giant TargetTarget assumed control of up to 220 Zellers stores and is spending $1-billion to convert 100 to 150 of them to its own brand.

But what of the remaining locations?

Late last week competing retailer Walmart signed a deal with Target Canada to assume leases at up to 39 sites currently operated by Zellers Inc. Walmart’s plan is to open “urban stores” called “Urban 90“.

Says the Toronto Star:

Many Zellers stores are smaller than a typical Wal-Mart, and certainly much smaller than the “supercentre” format Wal-Mart has been focused on in recent years. Wal-Mart’s supercentres have a general merchandise store and full grocery store and are up to 200,000 square feet, double a typical Zellers.

- Charles Edwards frequently blogs on Canadian REIT topics

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