Walmart Canada agreed to sell its fleet business to Canada Cartage as it focuses on expanding its stores and improving its supply chain across the country, according to press releases from both companies.
The deal is expected to close in the coming weeks, Sarah Kennedy, senior director of external and internal communication for Walmart Canada, told Supply Chain Dive in an email.
Walmart Canada’s fleet business ships deliveries from distribution centers to over 400 stores across the country, according to Canada Cartage Chief Administration Officer David Zavitz. Canada Cartage will operate the fleet unit as a dedicated operation, with all Walmart fleet employees offered employment at their existing wages and comparable benefits, per Zavitz.
Canada Cartage has operated for 110 years providing fleet services, such as DC-to-store network deliveries, to Canadian retailers, grocers, manufacturers and distributors, Zavitz said.
“Through Canada Cartage we can serve customers even better and more flexibly and provide fleet employees with exciting growth opportunities at one of Canada's largest and most trusted supply chain service providers,” Matt Kelly, VP of supply chain for Walmart Canada, said in a Jan. 30 press release.
Meanwhile, Canada Cartage expects to strengthen its fleet outsourcing capabilities and accelerate its growth in Canada through the move, per a separate release.
Walmart’s decision to sell its Canadian fleet business comes nearly a year after the retailer sold its intermodal assets to J.B. Hunt Transport Services. The intermodal deal, announced in February 2024, was intended to increase both companies’ volume and capacity.
