Walmart to purchase former Target locations in Canada
One of the nation's largest employers, Walmart Canada, is making the most out of a bad situation. As Target Canada closes its doors, the retail giant's competitor is swooping in to make the most of the real estate.
Named one of Canada’s top 10 most influential brands four years in a row, Walmart Canada currently operates 395 stores nationwide – including 282 supercentres and 113 discount stores – and receives more than 1.2 million customers daily.
While still pending approval from the court to ensure the transaction is in accordance with Target Canada's Companies' Creditors Arrangement Act proceedings and certain other customary conditions, if given the 'okay,' Walmart Canada is set to acquire one distribution center, 12 store leases and one additional property that is owned but formerly held by Target Canada. The price tag for it all? Approximately $165 million.
Moreover, if approved, this transaction will result in an additional 5,000 jobs for the Canadian economy.
Walmart expects to invest a further approximately $185 million to renovate the 13 stores and distribution center, augmenting Walmart’s total investment to approximately $350 million. Work on all locations is expected to start within the next few months subject to all necessary approvals. Grand opening dates and specific details for each location will be confirmed over the coming months.
Dirk Van den Berghe, President and CEO of Walmart Canada, explained that, “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.
“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.”
Walmart plans to hire approximately 3,400 new associates in British Columbia, Manitoba, Ontario and Quebec, while the renovations needed for the project are expected to generate approximately 1,500 trade and construction jobs.
The acquisition of these 13 retail locations, one distribution center and the investment commitment of approximately $350 million are in addition to the 29 Supercentre projects announced on February 11 of this year. The previous announcement covered an investment of $340 million for supercentres, expansion of our existing distribution network and e-commerce projects, bringing Walmart’s total investment to approximately $690 million.