Walmart plans nearly $500 million in Canadian projects including 35 superstores

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Charlottetown is getting a Walmart supercentre

Walmart is opening 35 more Canadian supercentres, including one in Charlottetown, as part of nearly $500 million in planned investments over the next year as the U.S. retailing giant keeps competitive pressure on its rivals.

The world’s biggest retailer says it will invest more than $376 million to build, expand, relocate or remodel its stores. It will also spend $31 million for e-commerce projects and $91 million to enhance its distribution network to handle more fresh food.

The expansion will likely increase competition for Canadian retailers — especially grocery, pharmacy and clothing chains — who are up against Walmart and Costco, two long-time U.S. rivals, as well as newcomers.

Target Corp., the second-largest U.S. discount retailer after Walmart, began expanding into Canada last year and even online retail giant Amazon began delivering groceries to Canadian customers.

Grocery chains such as Loblaws (TSX:L), Metro (TSX:MRU) and Sobey’s (TSX:EMP.A) have put in place consolidation plans and cut prices to lure in more customers.

Walmart says details on locations for specific store and distribution centre projects for the year ending in January 2015 will be announced as they become finalized.

“Customers in every region of Canada are looking to save money on their entire list of shopping needs,” Shelley Broader, Walmart Canada’s president and CEO, said in a statement.

“Delivering on our commitment to help lower the cost of living is our top priority, and our growing network of supercentres and our expanding walmart.ca offering enable us to do just that.”

The retail giant first came to Canada in the early 1990s, and has been expanding year after year to become the country’s largest department store retailer by sales.

It’s also one of the biggest employers in Canada with more than 95,000 employees.

Walmart spent $450 million to open or expand 37 additional supercentres in 2013-14, which marked the first time the retail giant brought its supercentre model to the Maritimes.

Walmart says the 2014-15 expansion announced Tuesday will generate about 7,500 jobs, including construction work.

The company currently has 389 stores, including 247 supercentres that carry a combination of groceries, apparel, and household goods.

It expects to have a total of 395 stores by the end of January 2015, with 282 super centres and 113 discount stores.

Last week, Target, which started to open Canadian stores last March, announced plans to open nine more stores, with a total of 133 locations expected to be open by the end of the year.

Target has faced high expansion costs and disappointing sales since its highly anticipated arrival in Canada. Shoppers complained about near-empty shelves and notably higher prices than at U.S. Target stores.

Target is also dealing with a massive data breach at its U.S. stores that may have affected some Canadian customers who shopped across the border between Nov. 27 and Dec. 15.

Target has said its investigation found the personal information of customers in Canada could have also been leaked. It says the information included names, addresses, emails and phone numbers but not credit card or payment information.

 

 

 

Organizations: Walmart, TSX, Costco Newcomers.Target Amazon Loblaws Metro inc. U.S. Target

Geographic location: U.S., Canada, Charlottetown

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  • Sandy
    February 07, 2014 - 10:20

    Walmart kills all the Mom & Pop businesses and pays slave wages. Sadly it is the way of the future

  • Deutschland
    February 05, 2014 - 20:12

    1. At Wal-Mart, Americans spend $36,000,000 every hour of every day. 2. This works out to $20,928 profit every minute! 3.. Wal-Mart will sell more from January 1 to St. Patrick's Day (March 17th) than Target sells all year. 4. Wal-Mart is bigger than Home Depot + Kroger + Target + Sears + Costco + K-Mart combined. 5. Wal-Mart employs 1.6 million people and is the largest private employer, and most can't speak English. 6. Wal-Mart is the largest company in the history of the world. 7. Wal-Mart now sells more food than Kroger & Safeway combined, keep in mind they did this in only 15 years. 8. During this same period, 31 Supermarket chains sought bankruptcy. 9. Wal-Mart now sells more food than any other store in the world. 10. Wal-Mart has approx 3,900 stores in the USA of which 1,906 are Super Centers ; this is 1,000 more than it had 5 years ago. 11. This year, 7.2 billion different purchasing experiences will occur At a Wal-Mart store. (Earth's population is approximately 6.5 billion.) 12. 90% of all Americans live within 15 miles of a Wal-Mart. 13. The value of product for Wal-Mart passing through the port of San Diego each year is a larger sum than 93% of ALL countries Gross National Product (GNP) .....and that is only ONE port ...one way – that’s how Wal-Mart gets it's stuff. 14. Of the 1.6 million employees, only 1.2% make a living above the poverty level. 15. Wal-Mart's head office is located and centralized in Bentonville. Due to this fact, there are more millionaires per square mile there than any place on Earth. 16. The official U.S. Government position is that Wal-Mart's prices are no lower than anyone else's when compared to a typical families weekly purchases. That's the view of the statisticians at the Bureau Of Labour Statistics (BLS) responsible for calculating the Consumer Price Index (CPI). 17. 92% of everything Wal-Mart sells, comes from China . Another 4% comes from Chinese owned companies in the U.S. or in 3rd world Countries. 18. Wal-Mart and MOST large companies, take out life insurance on its employees, without their knowing. If an employee dies, ALL the insurance moneys go to the companies, i.e. an employee making $18,000 per year, dies, and the company might make as much as $1 million. Most often these moneys, coming from what is commonly referred to as "Dead Peasant Life Insurance Policies", is paid out to executives as bonuses. (A common practice, unknown by the average consumer). 19. Wal-Mart now averages a "profit" (not sales) of $36 billion per year. 20. Let Wal-Mart bail out Wall Street. If we closed all the Wal-Mart stores, would China go bankrupt?????????

  • Rudy Haugeneder
    February 04, 2014 - 16:33

    Only Canadians who have no self respect will shops at Wal-Mart and Target stores that threaten to wipe out home-grown Canadian businesses, not because they offer good quality of service, but because they are so big they can force suppliers to slash profit margins to almost zilch -- something Canadian outfits like the already mentioned Loblaw and Canadian Tire are unable to force suppliers to do to the same degree, thereby allowing Wal-Mart to offer slightly lower prices, but which still afford the company tens of millions, perhaps billions, in profits that are funneled into its USA headquarters, while poorly paid Canadian associates (employees) barely survive. Real Canadians, and there are very few of them it seems, will boycott American superstore intruders unless they take into account Canadian business sensibilities, and greatly reduce the number of stores they operate in this country, especially since their prices suck and their service is even worse. Boycott, boycott, boycott.

    • Sue
      February 05, 2014 - 13:43

      Bring it on...I love Walmart! Low prices ,what's not to love.......... I know plenty of people who work at Walmart and they are treated fairly and make the same pay as any other retail store.( it does have a poorer reputation in the US)

    • Sean
      February 06, 2014 - 04:48

      Rudy I dont know what you mean by self respect what does that have to do with where you shop? Where did you shop for your christmas gifts this past year and every year??? Probably in a big box store they serve their putpose here and it is fantastic there a growing business which will create more jobs in the province. there really is no need to boycott anything if anything be happy that the provinces economy is growing thanks to the larger businesses