Target helps Walmart strengthen Canadian hand

Walmart doesn’t need a lot of help when it comes to growth, which is why last week’s announcement by Target to sell its larger rival 39 sites in Canada was a surprise. Walmart is on track to end this year with 333 stores, and on Friday Target said it had reached an agreement to transfer to Walmart Canada the rights for leasehold interests in up to 39 sites currently operated by Zellers. The sites are among the up to 220 possible sites whose leasehold interests Target is acquiring as part of a real estate transaction announced in January.

Target has selected 105 of those locations to open as its own stores, but not until 2013.

Walmart already has a head start on Target, ensuring the company faces an uphill battle in entering its first international market and now its larger rival has been handed the opportunity to accelerate growth and make Target’s market entry even more challenging.