* Retailer will open 125 to 135 stores in Canada from 2013

* Empire Co's Sobeys will supply food, groceries

Sept 23 (Reuters) - Target Corp (TGT.N) has selected the remaining Zellers leases it plans to buy from Hudson's Bay Co, and entered a grocery distribution deal as it prepares to open its first Canadian stores in 2013.

The Minneapolis-based U.S. discount retailer has selected 84 leases, it said in a release. Some will be sold on to other Canadian retailers or landlords. Earlier, it said it would sell some leases to Wal-Mart (WMT.N) Stores Inc.

In total, Target said it plans to open 125 to 135 stores in Canada beginning in 2013.

In January, Target said it would purchase leasehold interests for up to 220 sites from Hudson's Bay for C$1.8 billion. It announced the first group of 105 sites in May. [ID:nN26123202]

In a separate release, Canada's Empire Co Ltd (EMPa.TO) said its Sobeys Inc has reached a long-term wholesale agreement to supply Target with food and groceries in Canada.

(Reporting by Allison Martell; Editing by Frank McGurty)