Canadian Tire is planning to move into the Hillside shopping centre in a two-storey space left vacant by the closing of a Target store.
The move is part of Canadian Tire’s plan to take over a dozen retail leases once held by U.S.-based Target. Mounting losses led to a spectacular retailing failure after Target opened and closed 133 stores in Canada within about two years.
Canadian Tire is also planning to move into another former Target location on Vancouver Island, in Courtenay.
It’s conceivable that one of the five franchise owners in Greater Victoria would relocate to the 150,000-square-foot Hillside location.
Some point to the relatively small Gordon Head store as a possible choice.
Store owner John Weaver had no comment, referring questions to Canadian Tire’s head office in Toronto.
Canadian Tire said Wednesday that some stores will move to more desirable locations, but did not disclose specific stores.
The company announced it has reached agreement to pay $17.7 million to take over 12 leases.
The agreement must be confirmed by the court supervising resolution of Target’s affairs in Canada. Target had taken over Zellers locations.
Industry analysts predicted that Canadian Tire would make a bid for some Target locations.
Two more former Target locations in B.C. will be filled by Canadian Tire, in Vernon and Cranbrook. Other lease locations are in Winnipeg, Aurora and Sudbury in Ontario, Rimouski, Que., Montreal, Halifax and Moncton, N.B.
Canadian Tire expects improved profitability through a more cost-effective retail store network. New locations will allow for increased sales and market share, and provide room to display more merchandise, it says.
“We’ve been tracking certain Target properties for some time and when the opportunity came up, we moved quickly and secured virtually all of them. We chose 12 properties that fit strategically and financially into our store network,” said Michael Medline, president and CEO of Canadian Tire Corp., in a statement.
When Medline became president last year, he said plans included expanding and upgrading stores, investing in digital technology, and catering to young families with children.
Since being founded in 1922, Canadian Tire has grown to more than 490 stores. It has 10 stores on Vancouver Island, including five in Greater Victoria. They are all held by franchise owners, said Joscelyn Dosanjh, Canadian Tire spokeswoman in Toronto.
The first Target store to open in Greater Victoria was at the Tillicum shopping centre. Tillicum is owned and managed by RioCan Management (B.C.) Ltd. Spokeswoman Mary Anne Kenwood had no comment about the status of its vacant Target space.
Canadian Tire will acquire a virtually new 150,000-square-feet space in Hillside, owned by Bentall Kennedy. Canadian Tire already has a presence in Hillside because it owns Sport Chek and Atmosphere.
Brock Smith, UVic business professor, said the small Canadian Tire store in Gordon Head might be the one to move into Hillside.
“If I was to guess, that would probably be one I would replace, just because it is relatively small.”
Canadian Tire might be planning a megastore in Hillside, he said. “They are probably thinking about this as an opportunity to try some megastores in response … to competition.”
A large store at Hillside could discourage competitors from moving to Victoria, Smith said, citing the outdoor store Cabela’s, which has a Nanaimo outlet.
