Walmart has announced that it will acquire retail and distribution space in Canada from Target Corp. The announcement comes a few months after Target revealed plans to end its operations in the country.
Walmart noted that it will spend about $165 million Canadian dollars ($136 million) for 12 store leases and one owned property, adding about 1.6 million square feet of retail space. Walmart will also buy one distribution center in Cornwall, Ontario to add 1.4 million square feet of distribution space.
The retailer said it expected to invest an additional $185 million Canadian dollars ($153 million) in renovations, bringing its total investment to about $350 million Canadian dollars ($289 million).
“Walmart is committed to the Canadian market, and this agreement helps us accelerate our growth plans,” said Walmart Canada chief executive Dirk Van den Berghe. “The 13 stores acquired are well situated, and we are excited to bring Walmart’s successful super center offer to customers in these markets.”
The deal is subject to court approval and certain other customary conditions, Walmart said. Work at the locations is expected to start within the next few months. The acquisition of the 13 retail locations and distribution center is in addition to Walmart’s previously announced Canada expansion plans, which includes 29 new super center projects, announced in February of this year.