Walmart Canada acquires Target stores
May 11, 2015
by Erica Shaffer
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MISSISSAUGA, Ontario – Target's pull-back in Canada has led to Walmart Canada's expansion. The unit of Wal-Mart Stores, Inc. will acquire one distribution center, 12 store leases and one owned property formerly held by Target Canada. The deal is worth approximately C$165 (US$136.6) million and remains subject to regulatory approval.
Walmart plans to spend an additional C$185 ($153.1) million on renovations at the 13 stores and distribution center. The retailer said work on all locations is expected to start within the next few months. Walmart plans to hire approximately 3,400 new employees in British Columbia, Manitoba, Ontario and Quebec.
“Walmart is committed to the Canadian market, and this agreement helps us accelerate our growth plans ensuring more Canadians have access to our low prices,” said Dirk Van den Berghe, president and CEO of Walmart Canada. “The 13 stores acquired are well situated, and we are excited to bring Walmart’s successful Supercenter offer to customers in these markets. We have served millions of loyal customers, and look forward to continuing to serve them through our stores and growing e-commerce business.”
The acquisition of the former Target locations come in addition to the 29 Supercenter projects announced on Feb. 11. Walmart Canada will invest C$340 million for supercenters, expansion of the company's existing distribution network and e-commerce projects, bringing Walmart’s total investment to approximately C$690 million.