Walmart buying 13 Target sites in Canada
Walmart, already Canada’s biggest retailer, wasted little time in cementing that title after its rival Target retreated back to the United States.
The company is buying 13 former Target stores and one distribution center and said it will hire 3,400 new employees. It is spending $ 290 million to buy and renovate the stores and said that will created 1,500 construction jobs.
Target closed the last of its 133 Canadian stores in April after a two- year venture into the country. It laid off more than 17,000 people and took more than $ 5 billion in charges.
A number of retailers have struggled in Canada because of regulatory pressures and competition from Walmart and others. Big Lots and Best Buy have both closed stores in Canada. Sony closed all of its 14 stores.
Sears sold most of its stake in its Canadian unit, but asked former Target employees in January to apply for jobs at Sears Canada.
Walmart has 395 Canadian stores and has expanded further on Target’s withdrawal.
Walmart reported $ 485.7 billion in total revenue in its last fiscal year, and about onequarter of that total came from international business. Canada is its fifthlargest market outside the U. S. in terms of stores.
The Bentonville, Ark., retailer said the purchases of the Target stores and distribution center are in addition to its investment in 29 big- box stores in Canada, which it announced in February.
“Walmart is committed to the Canadian market, and this agreement helps us accelerate our growth plans,” said Dirk Van den Berghe, chief executive officer of Walmart Canada.