VANCOUVER: Target has acquired Zellers, one of Canada’s largest retail chains, in a bid to enter the Canadian market and compete with Wal-Mart in the region, The Global and Mail reports.
With almost 300 stores, the acquisition will increase competition by providing a direct competitor to Wal-Mart and other Canadian box stores in prime locations across the country.
It underscores the growing demand by foreign retailers for Canadian locations to take advantage of the country’s relatively healthy economy.
It also opens the door to other United States chains, such as Kohl’s Corporation, which are believed to be interested in Canadian expansion and are now expected to examine some of the Zellers locations that Target doesn’t want.
Source: The Globe and Mail
