Target aiming at international growth
US retailer linked to Canadian and UK deals
Target, the number two discount retailer in the US, is being linked to high profile acquisitions in the UK and Canada.
Sainsbury’s is reported to head a shopping list in the UK which also includes Matalan and Woolworths as potential targets.
In Canada, press reports say Target is in advanced negotiations that could lead to an offer for all or part of leading retail group Hudson’s Bay.
Target has cash available after the $3.2bn sale of the Marshall Fields chain to May Department Stores, and has also agreed a $1.65bn deal to sell its Mervyn’s department store chain to a financial consortium.
The sales are part of a strategy to allow the retailer to focus on ita core Target discount offer which operates more than 1,200 US stores with a focus on groceries, clothing and general merchandise.
Target executives told analysts this week that a key part of the strategy is to expand internationally. With an eye to the success of arch-rival Wal-Mart, which acquired the Asda chain five years ago, Target has sent two delegations to the UK in the past year. A meeting took place with Sainsbury’s but the UK retailer told [i]The Observer [/i] newspaper that no deal is being done.
[img r]zellersstorefront.jpg[/img]Hudson’s Bay is one of the world’s longest established retailers and operates The Bay department stores and discount chain Zellers, which competes with Wal-Mart in Canada. Reports have said that Target could offer as much a $857m for the entire chain, but may only be discussing a partial acquisition.
