Target announces first 24 stores in Canada
All of the first two dozen are at malls in various communities in Ontario.
"We are excited to announce the location of these first 24 Target stores . . . ," said Target Canada president Tony Fisher.
"In addition to providing Canadian guests with an exceptional shopping experience, Target looks forward to continuing our strong reputation of being a good neighbour in the Canadian communities in which we will do business."
Target has purchased the leasehold interests of 189 sites currently operated by Zellers Inc. and about $10 million to $11 million will be invested to remodel each facility.
Each location will employ between 150 to 200 workers, with hiring slated to being in 2012.
The announcement came on the same day that Target lowered its earnings expectations after a disappointing December in which U.S. consumers waited until the last minute to shop.
Revenue at stores open at least a year rose 1.6 per cent. That missed analyst expectations for a 3.1 per cent increase, according to Thomson Reuters.
Target's stock fell 3.4 per cent, or $1.70, to US$48.30 in afternoon trading.
Revenue at stores open at least a year is considered a key measure of a retailer's financial health because it excludes volatility from stores that open or close.
Strong grocery and beauty product sales offset weakness in electronics, movies, books and music, the company said. In addition, sales and traffic were stronger in the week before Christmas thanks to last-minute shopping.
Total revenue for the five weeks ended Dec. 31 rose 2.6 per cent to $10.14 billion.
The company now expects fourth-quarter earnings of $1.35 to $1.43 per share. That compares with prior guidance of $1.34 to $1.53 per share. Analysts had $1.48 per share.
Target Corp. said it expects revenue in stores open at least a year to rise in the low- to mid-single digit percentage range.
Source: canadianbusiness.com
