|Shoppers checkout at a Target store in Falls Church, Va. in this May 28, 2010 file photo. Target expects to open 100 to 150 stores throughout Canada in 2013 and 2014. REUTERS/Kevin Lamarque/Files
Target has agreed to buy leases for 220 Zellers retail sites for $1.82 billion, paving the way for the U.S. retail giant to open its first stores in Canada by 2013.
Target, expanding outside of the U.S. for the first time, expects to open 100 to 150 stores throughout Canada in 2013 and 2014. This will provide an initial foundation for a more “robust” presence over time, the company said in a statement.
The expansion will create thousands of jobs in Canada, initially in the construction industry through renovation works, and eventually in the stores themselves, it said. A typical U.S. store employs between 150 to 200 people, meaning tens of thousands of jobs will be created, it said.
"We are very excited to bring our broad assortment of unique, high-quality merchandise at exceptional values, and our convenient shopping environment to Canadian guests coast to coast," said Gregg Steinhafel, chairman, president and chief executive officer of Target Corporation.
Foreign retail giants are showing increasing interest in Canada’s retail market, attracted by a robust economy and stable financial system.
Target says its arrival will benefit the areas in which it operates as the company has a commitment to donate more than 5% of its income to support local initiatives.