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Wal-Mart picks up some Target stores in Canada

Wal-Mart Stores Inc's Canadian unit said it would buy some store leases and other assets formerly held by the Canadian arm of Target Corp and renovate them for about C$350 million (S$384 million). 

PHOTO: AFP

MAY 8, 20158:38 PM

[BENGALURU] Wal-Mart Stores Inc's Canadian unit said it would buy some store leases and other assets formerly held by the Canadian arm of Target Corp and renovate them for about C$350 million (S$384 million).

The retail giant said in February it planned to invest 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 expects to invest about C$185 million on renovation.

Wal-Mart, which plans to hire about 3,400 associates in British Columbia, Manitoba, Ontario and Quebec, expects to generate about 1,500 trade and construction jobs.

Target exited Canada last month after struggling since its March 2013 launch, resulting in 17,000 employees losing their jobs and triggering a US$5.1 billion quarterly charge.

The No. 2 US discount chain closed the last of its 133 retail stores in Canada on April 12, had said the real estate sales process was expected to be completed by June.

Earlier this week, retailer Canadian Tire Corp Ltd said it would buy leases for 12 properties previously held by Target Canada for US$17.7 million.

Canadian retailers Metro Inc and Hudson's Bay Co have also shown interest in leasing Target's properties.

REUTERS