Walmart to acquire only 13 Target locations in Canada

When Target pulled out of Canada, it was widely expected that Walmart would snap up some of Target's locations. But Walmart has decided to acquire only 13 stores, in a deal worth $136 million.

Walmart announced it has reached agreements to acquire one distribution center, 12 store leases and one owned property in Canada. The retailer says it expects to invest another $153 million to renovate the 13 stores and distribution center, bringing Walmart’s total investment to approximately $289 million.

“Walmart is committed to the Canadian market, and this agreement helps us accelerate our growth plans ensuring more Canadians have access to our low prices,” said Dirk Van den Berghe, president and CEO of Walmart Canada. “The 13 stores acquired are well situated, and we are excited to bring Walmart’s successful Supercentre offer to customers in these markets. We have served millions of loyal customers, and look forward to continuing to serve them through our stores and growing e-commerce business.”

Walmart plans to hire approximately 3,400 new associates in British Columbia, Manitoba, Ontario and Quebec and these projects are expected to generate approximately 1,500 trade and construction jobs.

The acquisition of these retail locations are in addition to the 29 Canadian supercenter projects announced on February, another multi-million dollar investment by the company.

Walmart said the transactions are subject to the approval of the court in accordance with Target Canada's Companies' Creditors Arrangement Act proceedings and certain other customary conditions. Work on all locations is expected to start within the next few months subject to all necessary approvals. Grand opening dates and specific details for each location will be confirmed over the coming months.

Walmart currently operates 395 stores in Canada.