Market Overview

Wal-Mart Sets Its Eyes On Winning The Canadian Market

Share:
Wal-Mart Sets Its Eyes On Winning The Canadian Market

Wal-Mart (NYSE: WMT) on Tuesday said that it will invest around C$500 million ($450 million) in 35 new supercenters between now and next January, Reuters reported. Wal-Mart's investment will improve its distribution network and e-commerce projects, while creating 7,500 jobs across the country.

Wal-Mart's retail footprint will grow to 15 million square feet from its current 14 million and will bring its Canadian store count to 395 from 389 by the end of January 2015.

“Our associates across the country have done an incredible job this past year serving our customers and opening a record number of new stores and supercentres,” said Shelley Broader, Walmart Canada's CEO to Canadian media publications.

“This year, we are ramping up our focus on lowering prices and helping customers lower their cost of living, as we continue to bring our supercentre format to more Canadians.”

Related: Brian Sozzi of Belus Capital Speculates Major Changes Are Coming At Best Buy

Target Canada feeling the heat

Wal-Mart's move comes at a time when fellow American retailer Target (NYSE: TGT) is struggling in the Canadian market after opening its first Canadian stores in mid-2013.

"We gave all of our competitors [in Canada] a two-year notice. So, in that last two years, they've upped their game. They've cleaned up their stores. They've added more service. They've lowered their prices," Target CEO Gregg Steinhafel said in an interview on CNBC on January 13, 2014. "They got better. We're going to have to get better."

Benzinga reached out to Brian Sozzi of Belus Capital Advisors to comment on how Wal-Mart's Canadian investments will affect Target Canada.

“Wal-Mart is trying to stomp on the face of Target while it's laying on the ground in pain,” Sozia said via email. “These investments, theoretically, will widen the edge Wal-Mart already has on Target in Canada in areas such as logistics and price perception.”

Latest Ratings for TGT

DateFirmActionFromTo
Aug 2019MaintainsNeutral
Aug 2019ReiteratesBuy
Aug 2019MaintainsEqual-Weight

View More Analyst Ratings for TGT
View the Latest Analyst Ratings

Posted-In: Brian Sozzi Brian Sozzi Target Gregg Steinhafel Shelley BroaderAnalyst Color News Retail Sales Analyst Ratings Best of Benzinga

 

Related Articles (TGT + WMT)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
WUBABOCOM InternationalDowngrades
DLTROTR GlobalUpgrades
ARCCCompass PointDowngrades
GTYHCitiInitiates Coverage On7.0
NKEGuggenheimMaintains100.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Aflac Barely Moves After Q4 Earnings Beat

magicJack Announces Dismissal of Class Action Lawsuit