Analysts pin Tuxedo project as top candidate for outlet

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This article was published 06/10/2010 (5764 days ago), so information in it may no longer be current.

NEWS that Target is eyeing new stores north of the border has fuelled speculation that the U.S. chain could be the next addition to the Ikea-led development in southwest Winnipeg.

Rob Warren, University of Manitoba marketing professor, said he’s not surprised Target Corp. is considering expanding into Canada, and has heard rumours for several years the retail giant may purchase land in Winnipeg. He suspects Target will first open stores in Toronto, Calgary and Vancouver to “get their feet wet” in the Canadian market before expanding to cities such as Winnipeg in 2016 or 2016.

Warren said the department store will be a good fit for bargain-hungry Winnipeggers, and suspects the plan could be to make Target part of the Seasons of Tuxedo development on Kenaston next to Ikea and 1.5 million square feet of retail and commercial space. “It’s no surprise, Target’s been talking about it,” Warren said. “I wouldn’t say there’s no possibility they won’t open up in the Seasons of Tuxedo in the first round in 2014, 2015.”

If Winnipeg is on Target’s radar screen, it will be the latest American retailer to set up shop.

In the last few months, Polo Park Shopping Centre has lured three new U.S.-based tenants — Hollister Co., Forever 21 and BCBGMAXAZRIA.

Retail experts say the struggling U.S. economy has made some stores contemplate Canadian options, and Warren said it also could be the reason why Target will wait another four or five years before moving ahead with expansion, calling it “forever” in the retail world.

Deborah Green, general manager of Polo Park Shopping Centre, said an increasing number of American retailers are looking at the Canadian market, though it’s too early to speculate whether Winnipeg is at the top of bottom of Target’s priority list. Green said Polo Park can’t accommodate a major department store right now, and suggested the Kenaston area is likely a prime location.

“It’s a blank sheet of paper,” she said of the Seasons of Tuxedo. “I have no room and Target is not going to take 2,000 square feet, it’s going to take a big space. They’re a major department store.”

Warren said there is a possibility Target could follow Walmart’s lead, and acquire an existing department chain, such as Zellers, to break into Canada. He doubts the chain’s arrival will have a negative impact on the number of Manitobans who cross the border to shop in Grand Forks and Fargo, saying Target in Canada probably won’t carry all of the same items as its U.S. counterparts.

Julie Rygg, director of Greater Grand Forks Convention and Visitors Bureau, said it’s difficult to speculate whether Target’s potential expansion into Canada will reduce the number of Manitobans who shop in North Dakota.

jen.skerritt@freepress.mb.ca