HUDSON' BAY UNVEILS KMART/ZELLERS PLAN
By Adnews Staff
Toronto-based Hudson's Bay Co. announced details of its plan to merge Kmart Canada operations with Zellers Inc. Hudson's Bay bought Kmart last month. Under the acquisition, Hudson's Bay ended up with 112 Kmart stores, It already had 298 Zellers outlets. The retailer evaluated each store based on location, size, performance, existing lease arrangement and local market considerations. Hudson's Bay has decided to convert 59 Kmart stores into Zellers stores. Fourteen Zellers stores will be relocated to Kmart locations in the same community, 11 Kmart stores and one Zellers location will be converted into Hudson's Bay new specialty retail format and two Kmart outlets and one Zellers store will become Bay locations. The remaining 40 Kmart stores will be closed. Stores scheduled to be closed will phase out over the next six months. The Kmart stores slated for closing are located in B.C., Alberta, Ontario, Quebec, New Brunswick and Nova Scotia.