Target aiming for Canada?

TORONTO — Target, the giant U.S.-based electronics and furniture retailer, says it will explore expanding into Canada or Mexico in the coming years, in what would be its first venture outside the U.S.

The retailer plans to test a new smaller format store aimed at more dense urban areas in the next few years.

Target, which has more than 1,700 stores, said that it expected to open only about 10 new stores on a net basis in 2010 in its existing markets, although it suggested that this could increase in 2011.

"The exact number and pace of these new store openings beyond this year will depend on a number of factors, including the economic and real estate environment, as well as internal operational performance," the company said in a recent statement.

The retailer also plans to continue a remodeling program at its existing stores, with $1billion to be invested in about 340 renovations. The program includes expanding the stores’ grocery offerings.

The move could be a boon to certain Canadian LTL carriers, some of which have already carved out niche contracts with big box retailers like Wal-Mart, Home Depot and Ikea since those retailers expanded into Canada.