Wal-Mart Invests $270 Million in Canada
CANADA - Wal-Mart has provided the amount it will cost for the announced growth it has planned for Canada, and it’s a healthy investment to our northern neighbor's economy and job market.
The 11 stores we previously reported that Wal-Mart has determined to open just one month after Target’s decision to pull out of the country was just the beginning. The company has now announced another 29 stores it plans to have open within the next year, all of them supercenters, totaling 40 new locations. The total estimation for the additional growth will cost the discount retailer about $270.1 million (C$340 million).
“Our mission is to provide multiple access points for customers to save money,” said Dirk Van den Berghe, President and CEO of Walmart Canada. “We will deliver on this commitment through a range of channels including our expanding network of supercentres, our accelerating e-commerce business, and our in-store pick up services.”
Here's a breakdown:
- Nearly C$230 million on new stores and remodeling
- C$75 million in distribution centers
- C$35 million to boost e-commerce initiatives
Wal-Mart expects the project to create nearly 5,000 construction, store and distribution center jobs, and add about 230,000 square feet of retail space, according to a press release.
While the company’s shares were at less than 1% down in light premarket trading, its overall shares are up about 11% in the past three months, putting the company in a promising position as it continues its growth outside of the continental U.S.