Wal-Mart Continues To Invest In Canadian Market

Target Corporation TGT's complete exit from its Canadian operations served as confirmation that its foray outside of the U.S. was not a successful one. Target expanded to Canada in 2013 and by January 2015 the company operated 133 locations across the country before Target Canada filed for bankruptcy. All Target Canada stores closed on April 12 as Canadian consumers were unsatisfied with the company's higher pricing versus its peers and supply chain and logistical issues that resulted in under-stocked shelves. Wal-Mart Stores, Inc. WMT, one of Target's largest competitors in the Canadian market, announced on Friday it has reached agreements to acquire on distribution center along with 12 store leases and one owned property formerly held by Target Canada for C$165 million (approximately $136 million). Wal-Mart also announced it will invest a further C$185 million to renovate the 13 stores and distribution centers, bringing its total investment to approximately C$350 million. The company will begin the renovation work over the next few months, subject to necessary approvals. "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 in a press release. "The 13 stores acquired are well situated, and we are excited to bring Walmart's successful Supercentre 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." Wal-Mart's investment will result in nearly 3,400 new associates spanning British Columbia, Manitoba, Ontario and Quebec. Indirectly, 1,500 trade and construction related jobs will also be created.