Wal-Mart just announced it plans on spending $453 million to expand in Canada. The move is seen as Wal-Mart’s latest attempt to bolster its Canadian presence before competitor Target can complete its own aggressive expansion.
“Wal-Mart appears to be playing some defence as Target is set to enter the market this year,” wrote Evan Clark at Women’s Wear Daily.
Wal-Mart will have 388 stores in Canada by the end of next year, according to Clark.
Meanwhile, Target is preparing to enter the country in a big way. The first stores will open this Spring, and the discounter says it will open 135 locations by the end of 2013.
Wal-Mart opened in Canada several years ago.
The market is appealing to discount retailers because at the moment, Canadians don’t have much to choose from.
This isn’t the first time Wal-Mart has played defence over Target’s arrival.
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