The company will open Target stores in the following Midwest cities: West Des Moines, IA; Norridge, South Elgin, and Warrenville, IL; Columbus, Munster, Nora Plaza, and Scottsdale, IN; Osage Beach, MO; and West Milwaukee, WI. Meanwhile Toronto-based Hudson's Bay Co. says it will not sell its 231-store Zellers division to Target, countering analyst and investor speculation that a deal is in the works.

Speculation on a merger has grown after Target agreed to sell to May its Marshall Field's department-store chain and nine Twin Cities Mervyn's stores last month. Target does not yet have any stores in Canada. Once the new stores are opened, Target Stores will have 1,272 stores in 47 states nationwide.