The Canadian unit of Wal-Mart Stores Inc. (NYSE:WMT) has said that it is planning to buy some store leases and invest in few assets earlier owned by Target Corp, Canadian division. Wal-Mart is to invest around $289 million in the renovation of these stores and assets. The retail giant had already announced its intention of investing C$340 million in the month of February earlier this year to make its presence more dominant in Canada.
According to the report, Wal-Mart will acquire 12 store leases, a distribution center of Target Canada and invest in property for C$165 million. The expected budget for the renovation is around C$185 million. The retail company is planning to generate around 1500 construction jobs and trade. It will hire around 3,400 associates in Ontario, British Columbia, Quebec, and Manitoba.
Target Canada Fails to Make a Mark
Target Canada was launched in March 2013 but failed to establish its hold over the market. After struggle of almost two years, the company exited Canada. It has caused around 17,000 employees lose their jobs, and the quarterly charge has triggered to around $5.1billion. Target is the No.2 discount chain in the US.
It closed its operations in 133 retail Canadian stores on April 12, 2015. The company has said that its real estate sales process with the Wal-Mart will be completed by the end of June. In the wake of this new development, one more announcement made earlier this week by Tire Corp Ltd., a Canadian retailer has come by surprise.
The Retailer Canadian has said that it is planning to buy leases for the 12 previously held Target Canada properties worth $17.7 million. Other retailing companies planning to jump into the fray include Canadian retailers Metro Inc and Hudson’s Bay Co that are also interested in leasing the properties of Target.
However, Wal-Mart Stores Inc. (NYSE:WMT) being the biggest retailer around, chances is that the company will try to get the best of all the leasing and property deals.