Vancouver, B.C., Canada (March 31, 2011) – Clearlease.com Reports Well-known Canadian clothiers Le Chateau , Jacob and Reitmans could become takeover targets as a wave of U.S. retailers follows Target Corp’s lead and seeks opportunities north of the border.
There are plenty of reasons why Canadian retailers have become so appealing: the country’s robust retail market, a healthy economy, proximity to the huge U.S. market, a common language and lower valuations of Canadian companies.
But why does a U.S. retailer need to acquire a Canadian chain to set up shop? The scarcity of real estate in big Canadian cities makes takeovers of companies with ready-made store locations the surest route for foreign entrants.
That was the rationale of Target in January when the No. 2 U.S. retailer announced a C$1.83 billion ($1.87 billion) deal to take over Canadian leases on up to 220 Zellers stores owned by Hudson’s Bay Co, North America’s oldest company.
The move signaled growing interest by U.S. companies in the Canadian market, where No.1 Wal-Mart Stores Inc has had a large presence for nearly two decades.
“Competitors always react to another’s movement and this was a pretty significant move on Target’s part,” said Ken Tuchman, vice-chairman of investment and corporate banking at BMO Capital Markets.
“Other U.S. retailers may begin thinking, ‘Are we just going to cede the country to Target, or are we going to explore similar opportunities?'” Tuchman said.
“You’re seeing more and more interest in Canadian retail M&A.”
Tuchman declined to speculate on which Canadian companies may be for sale.
FROM TARGET TO TARGETS
Sources contacted by Reuters said potential targets might also include clothier Tristan and sporting goods chain Forzani Group .
Clothier Le Chateau explored strategic options a few years ago and Jacob is a women’s fashion chain that filed for bankruptcy protection last year.
“There’s got to be consolidation there (in apparel) as large chains are taking market share,” said Ed Strapagiel, executive vice-president at retail consultancy KubasPrimedia.
“So you have to look around and say, what are some of the smaller fashion stores going to do about it?”
When Wal-Mart entered the Canadian market in 1994, it did so through the acquisition of about 120 Woolco stores from Woolworth Canada. Best Buy Co Inc acquired Future Shop in 2001.
So it’s no surprise that Minneapolis-based Target, known for its cheap but chic merchandise and with more than 1,700 stores in 49 U.S. states, chose to mirror that strategy.
“Once you get a couple of deals going, everybody gets interested and looks and says, what is there to buy?” CIBC analyst Perry Caicco said.
“The gates have opened” for U.S. retailers to enter the country, he said.
Among the large U.S. retailers without a presence in Canada are J.C. Penney , Kohls , Walgreen and Macy’s .
“If you want to enter Canada with any kind of scope, scale, if you want to have a critical mass, you will probably have to make a strategic acquisition,” Edward Jones analyst John Sheehan said.
“Good quality real estate in Canada is hard to come by,” he said. “The Canadian market has a lot less square footage per capita compared to the United States.”
DLC Clearlease currently has the following employment opportunities available: http://clearlease.com/Career-Opportunities.html
About DLC Clearlease
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouver, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers, DLC Clearlease is a free service that can qualify you for an automobile or equipment lease finance. You save time and effort by giving DLC Clearlease.com your information just once; DLC Clearlease has partnered with over 100 lenders to offer you the best rates and service, comparable to none. We offer a simple application process available at http://clearlease.com/How-to-Apply.html . You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Pidgeon, Editor
Tel: (604) 696-1221 ext. 177
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Vancouver, B.C., Canada (March 31, 2011) – Clearlease.com Reports Well-known Canadian clothiers Le Chateau , Jacob and Reitmans could become takeover targets as a wave of U.S. retailers follows Target Corp’s lead and seeks opportunities north of the border.
There are plenty of reasons why Canadian retailers have become so appealing: the country’s robust retail market, a healthy economy, proximity to the huge U.S. market, a common language and lower valuations of Canadian companies.
But why does a U.S. retailer need to acquire a Canadian chain to set up shop? The scarcity of real estate in big Canadian cities makes takeovers of companies with ready-made store locations the surest route for foreign entrants.
That was the rationale of Target in January when the No. 2 U.S. retailer announced a C$1.83 billion ($1.87 billion) deal to take over Canadian leases on up to 220 Zellers stores owned by Hudson’s Bay Co, North America’s oldest company.
The move signaled growing interest by U.S. companies in the Canadian market, where No.1 Wal-Mart Stores Inc has had a large presence for nearly two decades.
“Competitors always react to another’s movement and this was a pretty significant move on Target’s part,” said Ken Tuchman, vice-chairman of investment and corporate banking at BMO Capital Markets.
“Other U.S. retailers may begin thinking, ‘Are we just going to cede the country to Target, or are we going to explore similar opportunities?'” Tuchman said.
“You’re seeing more and more interest in Canadian retail M&A.”
Tuchman declined to speculate on which Canadian companies may be for sale.
FROM TARGET TO TARGETS
Sources contacted by Reuters said potential targets might also include clothier Tristan and sporting goods chain Forzani Group .
Clothier Le Chateau explored strategic options a few years ago and Jacob is a women’s fashion chain that filed for bankruptcy protection last year.
“There’s got to be consolidation there (in apparel) as large chains are taking market share,” said Ed Strapagiel, executive vice-president at retail consultancy KubasPrimedia.
“So you have to look around and say, what are some of the smaller fashion stores going to do about it?”
When Wal-Mart entered the Canadian market in 1994, it did so through the acquisition of about 120 Woolco stores from Woolworth Canada. Best Buy Co Inc acquired Future Shop in 2001.
So it’s no surprise that Minneapolis-based Target, known for its cheap but chic merchandise and with more than 1,700 stores in 49 U.S. states, chose to mirror that strategy.
“Once you get a couple of deals going, everybody gets interested and looks and says, what is there to buy?” CIBC analyst Perry Caicco said.
“The gates have opened” for U.S. retailers to enter the country, he said.
Among the large U.S. retailers without a presence in Canada are J.C. Penney , Kohls , Walgreen and Macy’s .
“If you want to enter Canada with any kind of scope, scale, if you want to have a critical mass, you will probably have to make a strategic acquisition,” Edward Jones analyst John Sheehan said.
“Good quality real estate in Canada is hard to come by,” he said. “The Canadian market has a lot less square footage per capita compared to the United States.”
DLC Clearlease currently has the following employment opportunities available: http://clearlease.com/Career-Opportunities.html
About DLC Clearlease
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouver, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers, DLC Clearlease is a free service that can qualify you for an automobile or equipment lease finance. You save time and effort by giving DLC Clearlease.com your information just once; DLC Clearlease has partnered with over 100 lenders to offer you the best rates and service, comparable to none. We offer a simple application process available at http://clearlease.com/How-to-Apply.html . You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Pidgeon, Editor
Tel: (604) 696-1221 ext. 177
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###
Vancouver, B.C., Canada (March 31, 2011) – Clearlease.com Reports Well-known Canadian clothiers Le Chateau , Jacob and Reitmans could become takeover targets as a wave of U.S. retailers follows Target Corp’s lead and seeks opportunities north of the border.
There are plenty of reasons why Canadian retailers have become so appealing: the country’s robust retail market, a healthy economy, proximity to the huge U.S. market, a common language and lower valuations of Canadian companies.
But why does a U.S. retailer need to acquire a Canadian chain to set up shop? The scarcity of real estate in big Canadian cities makes takeovers of companies with ready-made store locations the surest route for foreign entrants.
That was the rationale of Target in January when the No. 2 U.S. retailer announced a C$1.83 billion ($1.87 billion) deal to take over Canadian leases on up to 220 Zellers stores owned by Hudson’s Bay Co, North America’s oldest company.
The move signaled growing interest by U.S. companies in the Canadian market, where No.1 Wal-Mart Stores Inc has had a large presence for nearly two decades.
“Competitors always react to another’s movement and this was a pretty significant move on Target’s part,” said Ken Tuchman, vice-chairman of investment and corporate banking at BMO Capital Markets.
“Other U.S. retailers may begin thinking, ‘Are we just going to cede the country to Target, or are we going to explore similar opportunities?'” Tuchman said.
“You’re seeing more and more interest in Canadian retail M&A.”
Tuchman declined to speculate on which Canadian companies may be for sale.
FROM TARGET TO TARGETS
Sources contacted by Reuters said potential targets might also include clothier Tristan and sporting goods chain Forzani Group .
Clothier Le Chateau explored strategic options a few years ago and Jacob is a women’s fashion chain that filed for bankruptcy protection last year.
“There’s got to be consolidation there (in apparel) as large chains are taking market share,” said Ed Strapagiel, executive vice-president at retail consultancy KubasPrimedia.
“So you have to look around and say, what are some of the smaller fashion stores going to do about it?”
When Wal-Mart entered the Canadian market in 1994, it did so through the acquisition of about 120 Woolco stores from Woolworth Canada. Best Buy Co Inc acquired Future Shop in 2001.
So it’s no surprise that Minneapolis-based Target, known for its cheap but chic merchandise and with more than 1,700 stores in 49 U.S. states, chose to mirror that strategy.
“Once you get a couple of deals going, everybody gets interested and looks and says, what is there to buy?” CIBC analyst Perry Caicco said.
“The gates have opened” for U.S. retailers to enter the country, he said.
Among the large U.S. retailers without a presence in Canada are J.C. Penney , Kohls , Walgreen and Macy’s .
“If you want to enter Canada with any kind of scope, scale, if you want to have a critical mass, you will probably have to make a strategic acquisition,” Edward Jones analyst John Sheehan said.
“Good quality real estate in Canada is hard to come by,” he said. “The Canadian market has a lot less square footage per capita compared to the United States.”
DLC Clearlease currently has the following employment opportunities available: http://clearlease.com/Career-Opportunities.html
About DLC Clearlease
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouver, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers, DLC Clearlease is a free service that can qualify you for an automobile or equipment lease finance. You save time and effort by giving DLC Clearlease.com your information just once; DLC Clearlease has partnered with over 100 lenders to offer you the best rates and service, comparable to none. We offer a simple application process available at http://clearlease.com/How-to-Apply.html . You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Pidgeon, Editor
Tel: (604) 696-1221 ext. 177
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease
###