Are they being coy? Loblaw Cos. Ltd said Wednesday there shouldn’t be an automatic assumption the country’s largest retailer will move into former Target stores now being auctioned or otherwise offered to new tenants.
“We’re certainly involved in discussions though we don’t expect it to be meaningful from our perspective,” Galen Weston, the head of Loblaw, said on a conference call. “There’s not a huge number of sites that would be particularly complimentary to us.”
Weston added: “You shouldn’t expect any meaningful news from us in the coming months on that.”
Through its multitude of supermarket banners, ownership of Shoppers Drug Mart as well as other retail locations, such as Joe Fresh clothing shops, Loblaw has more than 2,300 corporate and franchisee-owned stores, making it the biggest retailer in the country.
Picking more retail real estate would likely draw close attention from competition regulators, experts suggest.
Loblaw expects half of 133 stores Target hastily bolted from last month to be picked up by larger retailers like itself. Canadian Tire announced on Wednesday its intentions to move into a dozen stores.
MORE: Canadian Tire to buy 12 former Target locations
Asked about other possible buyers, Weston said, “Walmart we think will be one, and there will be a few others.”
Will that include Loblaw? “No update.”
Better half
The half of the 133 former Target locations Loblaw estimates will be picked up by rivals is the better-performing portion – stores in locations where Target showed that decent sales could be sustained, at least in the hands of a capable retailer.
The most prized locations have gone to auction this week as part of the U.S. retailer’s court-supervised exit from Canada.
That leaves a big question mark hanging over dozens of poorer performing locations, though. Last week, Target simply returned the rights on 55 leases back to their Canadian landlords who find themselves racing now to find tenants.
MORE: Canadian mall landlords race to find tenants for ex-Target stores
For its part, Loblaw is busy building out new locations and renovating supermarkets it already owns, announcing in early March a $1.2-billion spending plan that called for adding 50 new stores and making improvements to 100 existing locations.
Asked about whether any of the new locations might be former Target stores, spokesperson Kevin Groh said no. “We do have a team that’s looking at that separately,” Groh said.
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