Walmart Canada capitalizes on vacated Target stores, investing $289 million

Walmart Canada said it will acquire about 3 million square feet of retail and warehouse distribution space from Target, who pulled out of the country last year. Wal-Mart Stores expects to invest approximately $289 million procuring and renovating 13 former Target properties, according to the release.

Specifically, Walmart Canada has reached agreements to acquire one distribution center, 12 store leases and one owned property formerly held by Target Canada, for approximately $136.5 million. 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.

Wal-Mart expects to invest $153.1 million to renovate the 13 stores and distribution center. Work on all locations is expected to start within the next few months subject to all 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. "The 13 stores acquired are well situated, and we are excited to bring Walmart's successful supercenter 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."

The new stores and distribution center will generate approximately 2,400 jobs in stores, 1,000 jobs in the distribution center and 1,500 construction jobs.

This acquisition is in addition to 29 supercenter projects Walmart Canada announced on February 11 at a cost of $281 million which will also address e-commerce fulfillment capabilities.

Newly acquired locations include:
• British Columbia
Scottsdale Mall, Delta
Coquitlam Center, Colquitlam
Surrey Place/Central City, Surrey
Haney Place Mall, Maple Ridge

• Manitoba
Southdale Center, Winnipeg

• Ontario
Guelph, Guelph
Bayshore Shopping Center, Ottawa
Billings Bridge Plaza, Ottawa
Pen Center, St. Catherines

• Quebec
Candiac Power Center, Candiac
Terrarium Shopping Center, Pointe Claire
Galeries Chagnon, Levis
Place Fleur De Lys, Quebec City
Distribution Center, Cornwall