The retailer announced Friday that it had reached an agreement to acquire 12 stores leases and one owned property as well as a 1.4 million-square-foot distribution center from Target for roughly 165 million Canadian dollars, or $136.7 million. The locations are in British Columbia, Ontario, Quebec and Manitoba and are expected to generate about 3,400 new jobs.
In addition, Walmart plans to invest about 185 million Canadian dollars ($153.2 million) to renovate the properties, resulting in another 1,500 trade and construction jobs. Work is expected to start within the next few months.
“Walmart is committed to the Canadian market and this agreement helps accelerate our growth plans, ensuring more Canadians have access to our low prices,” said Dirk Van den Berghe, president and CEO of Walmart Canada. Van den Berghe’s statement also noted that the proposed transaction was subject to court approval in accordance with Target Canada’s Companies’ Creditors Arrangement Act proceedings and “certain other customary conditions.”
All 133 of Target’s Canadian stores have been shuttered since Apr. 12, following the company’s announcement in January that it would cease operations north of the border only two years after its launch there.
Meanwhile, this is Walmart Canada’s second expansion so far this year: In February, the retailer announced a capital investment of 340 million Canadian dollars ($280.9 million) to increase store count, expand its distribution network and improve its e-commerce. The company currently operates 395 stores across the country.