Wal-Mart Stores, Inc.(NYSE:WMT) is constantly on the move when Target Corporation (NYSE:TGT) is to cope. Walmart last week expressed its plans for completion of its existing annual expansion program in Canada in providing 114 discount stores and 280 supercenters. The investment reported by the company itself is between US$550 to US$750 million every year.
Since the year 2011, approximately US$2 billion has been recorded by Target in its net losses. For almost 20 years Walmart has been operating in Canada, which certainly proves it to soon take over Canada’s challenging operating conditions. In the last Q, around 3.3% net sales were reported to have been raised 0.6%.
It’s said that retailers always die in Canada. After buying the Liquidation World chain, Big Lots is closing its business in Canada. Similarly, Sony might end its business in the North. Same for Sears Holdings, Best Buy and Staples, which are scaling back their businesses.
No doubt, the Canadian market tries its best to gain back its retailers. The worldwide real estate investment organization, CBRE, claims the sales/square foot of US$625 found within Canadian Malls, which in comparison to US counterparts, are more than US$482/square foot. Canadian market always had an advantage of dollar strength, which prevented much of the financial market lagging behind the USA financial market.
According to Canadian Walmart, 1 million customers are served every day, where the visiting rate of its online store is estimated to be around 400,000/day. What about Target? The rival withdrawing from the competing platform certainly releases much of the burden from itsshoulders; even then Wal-Mart realizes the Canadian retail setting reversal of fortunes can happen rapidly.