The Zellers stores in Owen Sound and Hanover are closing.

As Bayshore Broadcasting News first reported on Thursday -- the Hudson's Bay Company has confirmed both stores will close next March.

Corporate Communications Manager Tiffany Bourre confirms the leases for the stores are not being renewed.

The closing date is March 17th, 2013 -- and Target is not moving into the communities because those two stories were not included in the American company's purchase.

The decision affects more than 150 workers in Hanover and Owen Sound -- more than 80 people work at the Owen Sound store alone.

Owen Sound Mayor Deb Haswell says she is not surprised by the news because it appeared the writing was on the wall.

But Haswell says she feels for the people who work at the stores and their job loss.

And she hopes they can land on their feet soon since there is now a group of well trained customer service employees.

Haswell believes the closure will also impact the retail mix on the City's eastside.

Haswell says the City will offer Heritage Place any assistance it can to find a new tenant for the mall and to provide much needed jobs.

Haswell maintains the economy is improving locally -- but she feels the face of retail is changing.

Haswell -- who owns a store herself -- says more American companies are moving to Canada and consolidating operations.

No decision has been made yet about the Zellers locations in Collingwood and Goderich -- those stores were not included in Target's purchase either.