Sears (NYSE:SHLD) Canada announced its acquisition of two fashion lines that Target (NYSE:TGT) previously had exclusive rights to at its Canadian branch. Both brands, Cherokee apparel and shoes and Liz Lange maternity clothing, are still stocked in Target's U.S. locations and will be available at Sears Canada now that Target Canada is closing.
Sears Canada is aiming to benefit from Target's exodus from Canada, reported the Globe and Mail. On Jan. 15, Target announced plans to shutter all 133 Canadian stores. The retail chain never recovered from the initial blunders of its Canadian expansion.
Sears is not the only retailer looking to cash in on Target's retreat. This week Canadian grocer Metro expressed interest in buying up two remaining Target locations.
The CEO of Sears Canada, Ron Boire, is looking at other new label opportunities for Sears, especially in the way of women's and children's wear. The retailer recently announced plans to launch a Wayne Gretzky casual menswear line.
Target has not been the only retailer to fumble. Sears has suffered financially under four CEOs in the last three years. Its U.S. owner, Edward Lampert, tried to sell off stakes in Sears Canada to raise $380 million while divesting key store leases, closing outlets and cutting staff. At the close of 2014, Lampert had to loan Sears $400 million from his own hedge fund, ESL Investments.
-See this Globe and Mail article
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