Target buys Zellers leases from Hudson’s Bay Co.

Minneapolis-based retailer chain Target has purchased the leases of 220 Zellers store locations in Canada for $1.8 billion. Two cash payments of $912.5 million will be made in May and September of this year, and Target will convert 100 to 150 Zellers locations into Target stores, while selling off the remaining locations to other retailers. The purchase reportedly has its perks for the Canadian economy: It is expected to create jobs, Target will be investing $1 billion in revamping the store locations, and Hudson’s Bay Co. can now focus the Bay brand, having sold off an underperforming asset at a profit.

CBC