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Retailers likely affected by Target's entry into Canada

  • February 15, 2013 - 10:15 PM

Retailers likely affected by Target's entry into Canada

Hudson's Bay Co. -- Founded in 1670, the company today operates three department store chains: Zellers, the Bay and Home Outfitters. The company recently announced plans to raise $350 million through a stock offering. Ironically, Hudson's Bay made Target Canada possible by selling more than 200 leases from its Zellers stores to Target.

Rona Inc. -- The Quebec-based home-improvement chain recently rejected an unsolicited bid from Lowe's. Bad move, analysts say. "I think they are toast," said Toronto-based retail consultant Doug Stephens.

Canadian Tire Corp. -- The auto and sporting goods retailer has been a staple in Canadian life, with 9 out of 10 Canadians visiting a store at least once a year. In recent years, Canadian Tire, sort of like the Menards of Canada, has expanded its merchandise to patio furniture, kitchen appliances and air conditioners.

Wal-Mart Stores Inc. -- The retail giant, which operates 375 stores in Canada, plans to pump another $450 million in the country, including at least 37 new super centers over 2013, an expanded distribution network and more fresh-food sections.

Sears Canada -- The company, which has struggled to increase sales, said last week that it will close stores at three premier locations. Target's entry into Canada will not help matters, analysts say. A survey last year said close to 80 percent of Canadian consumers expect Sears to lose a lot or some sales because of Target.

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