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U.S. Business Wal-Mart grabs some former Target Canada assets for $350-million

The logo of Target, is pictured in Richmond, B.C., January 15, 2015.

© Ben Nelms / Reuters

Wal-Mart Canada is scooping up 13 former Target Canada stores and one distribution centre in a $350-million expansion project.

The retail behemoth said on Friday that it has struck agreements to acquire Target store leases, one owned property and a distribution centre for about $165-million.

It plans to invest another $185-million to renovate the 13 stores and distribution centre.

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No price was disclosed.

"We believe we paid a fair-market price for those leases and properties," Wal-Mart Canada spokesman Alex Roberton said.

The locations are in British Columbia, Manitoba, Ontario and Quebec and the new stores and distribution centre are expected to result in the creation of about 2,400 in-store jobs, 1,000 jobs in the centre and 1,500 construction jobs.

Target Canada was granted court protection from its creditors in January after a failed attempt at penetrating the Canadian retail market.

It said it was leaving Canada and closing all 133 of its stores and auctioning them off.

Wal-Mart Canada said on Friday that the proposed transactions are subject to approval from the court in accordance with proceedings under the Companies' Creditors Arrangement Act and "certain other customary conditions."

"Wal-Mart is committed to the Canadian market, and this agreement helps us accelerate our growth plans ensuring more Canadians have access to our low prices," Wal-Mart Canada president and chief executive officer Dick Van den Berghe said.

"The 13 stores acquired are well situated, and we are excited to bring Wal-Mart's successful Supercentre offer to customers in these markets."

So far this year, Wal-Mart Canada's total investment in new stores, expansion of its distribution network and e-commerce projects comes to about $690-million, the company said.

Another Canadian retailer cherry-picking former Target outlets is Canadian Tire Corp. Ltd.

Montreal-based grocer Metro Inc. and Hudson's Bay Co. have expressed interest in acquiring Target leases, as well.

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