Walmart Canada To Invest About $3.8 Billion Over Five Years

On Thursday, Walmart Inc WMT Canada announced a substantial investment plan, committing C$6.5 billion ($3.88 billion) to its operations over the next five years.

The objective is to broaden its presence and improve service offerings throughout Canada. The funding will facilitate the development of new Supercentres, upgraded distribution centers, and technological advancements designed to enhance the customer shopping experience and optimize Walmart's operations in the country.

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The C$6.5 billion investment plan includes the launch of five new Supercentres by 2027. Walmart will begin by establishing locations in Ontario and Alberta, with prominent stores in Mississauga and Oakville.

The Port Credit Supercentre is set to open in the summer of 2025, strategically positioned to serve high-traffic areas.

"This $6.5 billion investment is the largest we've made in Canada towards expanding our footprint since we first arrived here 30 years ago," said regional CEO Walmart Canada, Chile, Mexico and Central America, Gui Loureiro.

Another Oakville store, opening toward the end of 2025, will offer a comprehensive selection of items, such as fresh produce, meats, dairy products, and pharmacy services.

In addition to opening new stores, Walmart Canada is also planning to improve its supply chain. The company is set to launch its distribution center in Vaughan by spring 2025, boosting distribution efficiency and optimizing operations nationwide.

The retailer has entered into an agreement with fleet services provider Canada Cartage to buy Walmart Canada's fleet business. The development follows the completion of Walmart Canada's previous C$3.5 billion investment, which started in 2020 and involved the modernization of more than 180 stores.

Key upgrades included turning the Mississauga-Square One Supercentre into a flagship location. The ongoing expansion is expected to help maintain Walmart's competitive edge in the Canadian retail sector.

In 2024, Walmart Canada allocated almost $200 million for pay raises for frontline employees.

On the other hand, last week, Amazon.com Inc. announced that it was withdrawing its operations in Quebec, Canada, and losing about 1,700 full-time jobs.

The American e-commerce giant's move followed U.S. President Donald Trump's threat to slap 25% tariffs on imports from Canada and Mexico on February 1.

Amazon has seven sites in Quebec, including sorting centers and warehouses, most of which are in the Montreal area.

Price Action: WMT shares are trading higher by 0.40% at $98.26 at the last check on Friday.

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