Walmart to buy numerous former Target locations in Canada
Walmart Canada has reached agreements to acquire one distribution centre, 12 store leases and one owned property formerly held by Target Canada, for an aggregate of approximately C$165m.
The transactions are subject to the approval of the court in accordance with Target Canada's Companies' Creditors Arrangement Act proceedings and certain other customary conditions, but if approved, could prove to be a 5,000 jobs bonanza for the Canadian economy.
Walmart expects to invest a further approximately C$185m to renovate the 13 stores and distribution centre bringing Walmart’s total investment to approximately C$350m. 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, said: “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 and these projects are expected to generate approximately 1,500 trade and construction jobs.
The acquisition of these 13 retail locations, one distribution centre and the investment commitment of approximately C$350m are in addition to the 29 Supercentre projects announced on February 11 of this year. The previous announcement covered an investment of C$340m for supercentres, expansion of our existing distribution network and e-commerce projects, bringing Walmart’s total investment to approximately C$690m.
Walmart Canada currently operates 395 stores nationwide, consisting of 282 supercentres and 113 discount stores serving more than 1.2 million customers each day. Walmart Canada is one of the country’s largest employers and has been ranked one of Canada’s top 10 most influential brands four years in a row.
For further information, please visit: http://news.walmart.com/news-archive/2015/05/08/walmart-canada-announces-further-investment-in-canadian-market