Dive Brief:
- Walmart Canada announced it plans to invest 6.5 billion Canadian dollars (about $4.5 billion as of press time) into its store and supply chain footprint, according to a Jan. 30 press release.
- As part of the initiative, the retailer is planning to open dozens of stores across the country, starting with opening five Supercenters in Ontario and Alberta by 2027, two of which are slated to open this year, according to the release.
- Walmart Canada is also planning to open a distribution center in Vaughan, Ontario, this spring.
Dive Insight:
The company’s investment is the largest of its kind since Walmart Canada began operations about 30 years ago, Guilherme Loureiro, regional CEO of Walmart Canada, Chile, Mexico and Central America, said in a statement.
The investments announced in January will support the modernization and expansion of the company’s Canadian supply chain. Walmart Canada announced that Canada Cartage has acquired the company’s fleet business. The company declined to disclose the financial terms of the deal.
Walmart Canada plans to open its Vaughan Distribution Center this spring. The retailer also plans to open multiple supercenters in locations that include Port Credit, Hopedale Mall, Calgary, Edmonton and Fort McMurray.
The investment comes on the heels of several executive appointments at Walmart Canada. Steve Schrobilgen was named Walmart Canada's chief operating officer. His responsibilities include oversight of supply chain and real estate. Schrobilgen’s prior position was senior vice president and business unit leader for Walmart in the Western U.S. Also Venessa Yates was appointed CEO, previously SVP and general manager of the company’s Walmart+ membership program.
The announcement also comes as Walmart Canada wraps up a prior 3.5 billion Canadian dollar investment, first announced in 2020. Under that initiative, the company said it updated more than 180 stores, added four stores in Victoria, British Columbia, and Montreal and relocated two stores in Edmonton and Vaughan, Ontario.
Additionally, the company invested 800 million Canadian dollars to open a fulfillment center and three distribution centers, including the Vaughan location. The company also touted its 200 million Canadian dollar investment last year in pay increases for Walmart Canada’s frontline workers.
