TORONTO - Hudson's Bay Co (HBC.TO) is planning to open a new namesake department store in Montreal, Canada, two sources familiar with the matter told Reuters on Thursday.

The new Hudson's Bay store will fill a space formerly occupied by Target Corp (TGT.N) in Carrefour Angrignon, an 850,000 square feet shopping center located in southwest Montreal, the sources said.

A Hudson's Bay spokesman confirmed it is opening a store at the location. The sources declined to be identified as the information is not public.

The new store comes at a time when the company is under pressure from activist investor Jonathan Litt, who has asked it to consider options, including store closures.