Walmart Canada plans to open two new stores this year

MISSISSAUGA, Ont. – Wal-Mart Canada says it plans to expand seven stores and open two new ones this fiscal year.

The retailer will also convert 20 of its stores into supercentres by adding a grocery section.

Wal-Mart Canada estimates the cost at $230 million, with an additional investment of $75 million to expand its distribution network and $35 million on on e-commerce initiatives.

The news comes after U.S.-based retailer Target announced it is pulling out of Canada and will be shutting down all 133 of its Canadian stores.

Target acquired the leases from retailer Zellers back in 2010 and has said it will work with an advisor to sell them.

The expansion will bring Wal-Mart Canada’s store count to 396 by the end of January, 2016, consisting of 309 supercentres and 87 discount stores.

“Our mission is to provide multiple access points for customers to save money,” said Wal-Mart Canada president and CEO Dirk Van den Berghe.

Note to readers: This is a corrected story. An earlier version said the estimated cost of the projects was $230.