To clarify... I have a family member who is involved in this deal.
What's happening is the Bay is closing all of the Zeller's stores across Canada and then turning around and selling the real estate of the top stores to Target.
So Zellers is essentially being replaced by Target. Then the Bay is going public sometime in the next year or so (the current owners are Americans from the US who don't really understand that Canadian retail is far different to American retail business).
Target will carry the majority of their product line from the states as well as a few things that sold particularly well at Zellers.
Basically this is bad news for WallMart and relatively good news for consumers, cuz, lets face it, Zellers sucked.