Wal-Mart Buys Former Target Stores in Canada

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By Jacob Maslow

Wal-Mart Stores, Inc. (WMT) says it will buy some assets and store leases that were previously held by Target Corp’s (TGT) Canadian unit. The company plans on renovating the stores, which will cost C$350 million, or $289 million USD.

The retail giant stated back in February that it planned on investing C$340 million in Canada this year to increase its presence in the country.

On Friday, Wal-Mart announced that it would acquire 12 store leases, a Target Canada distribution center and an owned property for approximately C$165 million. The company expects to invest C$185 in the renovation.

Wal-Mart plans on hiring 3,400 associates in Manitoba, British Columbia, Quebec and Ontario. The company also expects to create 1,500 construction and trade jobs in the country.

Target closed its stores in Canada in April after struggling to build a presence in the country since March 2013. The closing left 17,000 employees without jobs. While the last of the company’s stores closed down on April 12, the real estate process isn’t expected to be completed until June. Target had been gradually slowing down operations since January and was granted creditor protection.

Earlier in the week, Canada’s Tire Corp Ltd stated that it would buy 12 leases formerly held by Target Canada in a $17.7 million deal.

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