Retail group Target has revealed that it plans to open around 200 stores in Canada when it enters the market in 2013 – up from previous estimates of 100-150 stores.
According to a report by Reuters, Target chief financial officer Douglas Scovanner said the retailer expects to generate at least US$6bn in annual sales in Canada in as little as six years.
“The sun, the moon and the stars all lined up properly `...` Canada represents a vibrant retail market, where we think we can highly likely succeed,” Mr Scovanner told Reuters.
“Commencing right now, we are looking at other sites in Canada to be able to ultimately have a presence of what will likely be 200 or more stores.”
In January, Target announced that it had acquired leasehold interests for C$1.8bn in up to 220 outlets from Zellers, a subsidiary of the Hudson’s Bay Company.
Target expects to open its first Canada stores in 2013, and Mr Scovanner said the retailer plans to invest up to US$10m per store and generate annual pre-tax profits of “hundreds of millions” of dollars in the country as a whole.
“We will need to invest on an ongoing basis in acquiring new sites and new buildings,” Mr Scovanner explained.
“It clearly will be our intent to have some variety of food products in as many stores as we can.”
