Target

[gabe]

Fairweather sues for Target name in Canada

Fairweather Ltd. has filed a $250-million Federal Court lawsuit against American discount retailer Target, which recently announced Canadian expansion plans.

n documents filed Monday, Fairweather is seeking an injunction to prevent the U.S. company from using the Target name in Canada. The American discount retailer announced last week it plans to open roughly 150 stores in Canada, after it bought the lease interests of more than 220 Zellers locations across the country.

Fairweather, owned by retailing mogul Isaac Benitah, claims it has owned the rights to the Target name in Canada for more than a decade, when it bought the rights to that brand and others from now-defunct retailer Dylex Ltd.

Toronto-based Benitah also runs Randy River, International Clothiers and other mid-sized Canadian retail names.

The documents say Fairweather has been operating a Toronto clothing store under Target Apparel since at least 2005. There are also locations in Sudbury, Ont., and Nanaimo, B.C., and more store openings are planned in Surrey, B.C., and elsewhere.

This isn't the first time the two companies have had legal altercations. Their clashes go back to 2001, when the U.S. chain first took issue of Benitah's use of Target.

The Federal Court of Appeal ruled in Benitah's favour in 2007, before the U.S. retailer tried again in 2010, in a case that is ongoing.

Target Corp. has again asked a court for an injunction to ban the use of the Target name in Canada, said a report in the Globe and Mail on Tuesday.

Both companies have refused to comment on the latest court actions.

Read more: http://www.cbc.ca/money/story/2011/01/18/fairweather-target.html#ixzz1BQgBIilQ

 

[Skeezix]

I can't see this being a site that they would sell/relinguish to another retailer.....so it is either leave it alone as a Bay (a renovated improved Bay but a Bay none-the-less) or bring a brand that they control....like L&T.

I don't think they ever had "plans" to bring L&T....it was speculated at the time but they never confirmed it.....I think they have spent the first few years of owning HBC doing 3 things:

1.....trying to bring back the Bay as a full service department store (and progress has been made)

2.....establishing/expanding Home Outfitters as a key player in the profitable home furnishings marketplace before too many of the US competitors got here....somewhat done
3.....figuring out what to do with Zellers (done, apparantly).

Now, I guess, they can fully develop their senior department store strategy which could be something along the lines of key downtown locations starting fresh as L&T and the Bay becoming a more suburban-mall full service outlet.

At the time of the purchase, NRDC had explicit plans to bring approximately 15 Lord & Taylor outlets to Canada -- just review the news articles in the Hudson Bay changes thread. The precise details were never released publicly, but it wasn't media speculation. Later, they quietly announced the plans were off the table. I'm no expert, but the work they are doing at the Bay seems entirely inconsistent with your theory of their department store strategy. Never say never, but nothing they are doing suggests that they currently have a dual banner strategy.

 

[adma]

Now, I guess, they can fully develop their senior department store strategy which could be something along the lines of key downtown locations starting fresh as L&T and the Bay becoming a more suburban-mall full service outlet.

Though given the long history of the Hudson's Bay Company, being relegated to the suburban-mall-type circuit seems demeaning...

 

[TOareaFan]

At the time of the purchase, NRDC had explicit plans to bring approximately 15 Lord & Taylor outlets to Canada -- just review the news articles in the Hudson Bay changes thread.

Where do I find that thread....did a search but could not find it.

The precise details were never released publicly, but it wasn't media speculation

.

Not sure I said media speculation.....just speculation in general. Like I said, I could not find the thread you refered me to so maybe it is in there but I don't remember them announcing any plans (with or without precise details) but I could have missed it.

Later, they quietly announced the plans were off the table. I'm no expert, but the work they are doing at the Bay seems entirely inconsistent with your theory of their department store strategy. Never say never, but nothing they are doing suggests that they currently have a dual banner strategy.

Maybe I was not clear.....the duel strategy is not my theory.....just one I have heard suggested and I was throwing it out there as an example of a "strategy" they could pursue...there are lots of others too...like status quo for the Bay....or closing the Bay....or selling non key locations....etc etc. I can see how I was not that clear but I was not intending to suggest that that was the strategy they would follow.

 

[Skeezix]

Thanks for the clarification. I ought not to have assumed. I also should've linked to the HBC changes thread I was talking about. I think there is also a more recent thread, which includes a number of newspaper articles on Bonnie Brooks, but I can't seem to find it at the moment.

 

[Skeezix]

Speaking of Maison Simons, and of the impending arrival of Target, there is an article today in the Globe discussions Simons' expansion and its reaction to Target - reproduced in the Simons thread.

 

[airplane-dude]

So is there any update about Target and the naming issue?

It's been a month or so since we've last heard any news.. Do they now already own the Zellers stores? If not, when will they?

 

[Dan416]

I doubt there's any updates on the naming issue. Personally I think the Canadian Target is just looking to for the American Target to pay them a bunch of money to use the name.

 

[airplane-dude]

Personally I think the Canadian Target is just looking to for the American Target to pay them a bunch of money to use the name.

Oh no doubt..

But as I recall, Target's plans were to start rebranding this year.. I guess these court cases would delay that indefinetly?

 

[Dan416]

Oh no doubt..

But as I recall, Target's plans were to start rebranding this year.. I guess these court cases would delay that indefinetly?

This year? No, the plan was to start in 2012 as I recall.

 

[airplane-dude]

This year? No, the plan was to start in 2012 as I recall.

Hmm.. I'm confused. I thought I had read somewhere that conversions will begin this year, and all 100 or so would be converted by 2013.

I now just found this on the New York Times website:

It will not begin converting the 220 Zellers locations until 2013. Until 2014, Hudson’s Bay will sublet the stores from Target and continue to operate them as Zellers outlets. Target will invest about $1 billion in renovations and have up to 150 stores under its own name in Canada within three years.

Source: http://www.nytimes.com/2011/01/14/business/global/14target.html

I hope that statement isn't true, as I can't stand to shop at Zellers for that long!!!

 

[khris]

Is someone holding a gun to your head forcing you to shop at Zellers?

 

[airplane-dude]

Is someone holding a gun to your head forcing you to shop at Zellers?

Oh not at all.. But until two years ago, I was living in Guelph were the main Zellers location was pretty much acceptable after being converted from a Kmart.

But here in the GTA? Wow, they are downright disgusting.

I was simply hoping the 'change' would come sooner than later.

 

[Torontovibe]

I like shopping at Zellers. I've gotten some great deals there. (as well as some cool stuff)

 

[khris]

I find the best thing Zellers has is bathroom stuff.
I remember before A&F came to Canada, they used to sell some of their clothes. I couldn't believe my eyes when I saw it.