MISSISSAUGA, Ont. - Walmart has signed a deal with Target Canada to take over leases at up to 39 stores currently operated by Zellers Inc., the discount retailer Target is acquiring in in its expansion into Canada.
Terms of the transaction, announced Friday, were not disclosed.
Target signed a deal earlier this year to take over up to 220 Zellers locations from Hudson's Bay Co. for more than $1.8 billion.
Target announced the first 105 Zellers locations that it plans to convert to Target stores last month in conjunction with an initial payment.
The U.S.-based retailer is expected to continue to select additional locations before it makes a second payment in the fall.
Zellers locations that Target acquires, but does not convert to its banner, are expected to be leased back to Zellers or potentially other retailers.
For Walmart, Friday's deal could lead to a major expansion of the company in Canada, where it is already the biggest retailer in revenues and this country's third-largest employer, with 85,000 workers.
Walmart Canada signs deal with Target Canada for 39 Zellers locations
