Glentel teams up with Target

Under the terms of the deal, Target Canada will license the operation of mobile communication sales and services display fixtures within its stores to Glentel under the brand Target Mobile. Target Corp. (NYSE:TGT) said Thursday it has teamed up with Canadian multi-carrier mobile phone retailer Glentel (TSX:GLN), with Glentel to offer an array of wireless devices to customers when the discount chain opens its stores in Canada in 2013.

Under the terms of the deal, Target Canada will license the operation of mobile communication sales and services display fixtures within its stores to Glentel under the brand Target Mobile, the company said in a statement.

“This agreement means that our guests will have access to superior mobile communication products at great value when shopping at our stores,” Target Canada’s senior vice president of merchandising, John Morioka said.

“Our goal is to bring the true Target brand shopping experience to Canada and this includes partnering with accomplished Canadian companies like Glentel to offer our guests the highest quality merchandise and exceptional service.”

Target, so far, has announced plans to open 125 stores across Canada starting in March of 2013. The company plans on announcing additional store locations that will begin opening in 2014.

In a separate release, the discount retailer said net sales for the month of September increased 2.6 per cent to $6.07 billion.

Comparable store sales notched up 2.1 per cent, just below the 2.2 per cent increase analysts expected.

“We’re pleased with our sales results through the first two months of the quarter and believe we remain on-track to attain our third-quarter sales and profit goals,” chief executive Gregg Steinhafel said in a release.

The Minneapolis, Minnesota-based company also announced Thursday it would no longer be providing monthly sales beginning fiscal year 2013.

Shares of the U.S. retailer grew 0.97 per cent to $63.70 each on the New York Stock Exchange on Thursday.

Glentel’s stock traded at $14.50 on the Toronto Stock Exchange. Its shares hit as high as $14.80 in earlier trading.

Brad Lemaire
Proactive Investors
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