Wal-Mart Stores decided to expand in Canada after Target Corporation decided to shut down its stores in the country
Wal-Mart Stores is planning to invest approximately C$340 million for its supercenter, distribution network and e-commerce projects in Canada.
The retail giant said its current expansion projects are in addition to the 11 supercenter recently opened across the country on January.
Wal-Mart Stores decided to expand in Canada after Target Corporation decided to close its 133 stores in the country. The second largest general merchandise retailer in United States failed in the Canadian market. It recorded more than $2 billion net losses since 2011.
Market observers believe that Target’s exit will boost the financial performance of the retail giant in the Canadian market.
Details of the investment
Wal-Mart Stores plans to complete the construction of 29 supercenter stores in Canada during its current fiscal year. The retail giant allocated C$230 million for the supercenter projects including remodeling and expansion of several stores to add full grocery departments.
The company plans to spend C&75 million for additional distribution center to boost its fresh food and e-commerce capacity. Wal-Mart Stores allocated C$35 million for additional e-commerce initiatives.
Wal-Mart Stores said the capital expenditure investment is part of its previously announced global capital commitment for the fiscal 2016.
Wal-Mart to create thousands of jobs in Canada
The projects are expected to add 230,000 feet of retail space, which would expand its distribution network and support its e-commerce growth in the country. It will also continue to expand and enhance Wal-Mart Canada’s website.
The retail giant said the project would create 3,700 construction jobs, 1,000 store jobs and 300 distribution jobs across Canada over the next year.
In a statement, prDirk Van de Berghe, president and CEO of Wal-Mart Canada said, “Our mission is to provide multiple access points for customers to save money. We will deliver on this commitment through a range of channels including our expanding network of supercenters, our accelerating e-commerce business, and our in-store pick up services.”
By the end of January 2016, Wal-Mart Canada will have 396 total stores including 309 supercenters and 87 discount stores. The retail giant will announce the specific locations of the stores and distribution center projects over the next weeks of months.