Target locations expected to sit vacant in Canada
Target is saying farewell to its market presence in Canada and as a result 133 large retail spaces will be up for grabs later this year.
However, will these retail spaces sell quickly? Perhaps not as soon as expected.
Analysis conducted by Field Agent mapped out the relative distance from Target store locations to current locations of potential replacement tenants, such as Walmart, Costco, Lowe’s, Canadian Tire. They did this to determine what retailers would be interested in taking over the current Target stores – averaging around 100,000 square feet.
Target store Scottsdale Centre in Delta, Canada.
“From our analysis it is pretty clear that there will not be a ‘white knight’ among current Canadian retailers who will be able to scoop up all 133 locations” said Jeff Doucette, Field Agent’s general manager.
“In fact, we expect that a large number of these locations will sit vacant for an extended period given the current network development of Canadian retailers. It is unclear if any foreign owned retailer not already operating in Canada would be willing or able to follow in Target’s footsteps, especially with the recent negative economic news and weak Canadian dollar.”
Lowe’s Canada could be interested though, as the U.S.-based company has just under 40 stores in Canada, while its main rival Home Depot operates 180 locations across Canada.
“Lowe’s may be the retailer that has the means and the desire to pick up the largest number of former Target stores, especially non-mall locations located in suburban areas. Lowe’s has some good experience in operating in Canada and an existing supply chain that has been tried and tested. This could be a great opportunity for Lowe’s to drive measured growth for its Canadian operation,” concluded Doucette.