Wal-Mart to buy some Target Canada stores
08 May 2015
Wal-Mart Stores Inc's Canadian unit plans to buy some store leases and other assets formerly held by the Canadian arm of Target Corp and renovate them at a cost of about C$350 million.
The retailer said in February it planned an investment of about C$340 million this year to boost its presence in Canada.
Wal Mart said it would acquire a Target Canada distribution centre, 12 store leases and an owned property for C$165 million and expected to invest about C$185 million on their renovation.
According to Alex Roberton, Wal-Mart Canada's director of corporate affairs who spoke to Reuters, organisations owed money by Target Canada controlled the sale.
Wal-Mart which would hire about 3,400 associates in British Columbia Manitoba, Ontario and Quebec, said it expected to generate around 1,500 trade and construction jobs in Canada.
Target, the the second-largest discount chain exited Canada last month after struggling since its March 2013 launch. The exit led to 17,000 job losses and triggered a $5.1 billion quarterly charge.
According to Target Canada, it would close the last of its 133 retail stores on 12 April, adding, the real estate sales process was expected to be completed by June.
Wal-Mart said it was committed to the Canadian market, and this agreement helped the company accelerate its growth plans, Bloomberg reported Dirk Van den Berghe, chief executive officer of Wal-Mart Canada as saying.