By Brian Schultz
Hudson’s Bay Company plans to sell off a portion of its 280 Zellers stores to U.S. retailer Target.
The Globe and Mail originally reported the deal on Wednesday, saying U.S. property entrepreneur Richard Baker — who heads up HBC — was in talks with several big name retailers. On Thursday, both companies confirmed the news.
HBC will sublease up to 220 of its properties to Target Corp. in a deal worth $1.8 billion.
Target expects to open 100 to 150 stores throughout Canada in 2013 and 2014.
“Zellers will continue to operate a portfolio of certain Zellers stores in specific communities across the country,” a news release from HBC read.
Target’s entry into Canada is projected to create over 20,000 new jobs and generate over $1.5 billion in economic activity.
Retail experts say Target will do well in Canada, but consumers should not expect to see similar pricing compared to its U.S. stores.