Walmart (NYSE:WMT) has announced plans to acquire retail and distribution space from Target (NYSE:TGT) in Canada. Just a few months after Target officially revealed plans to exit the country, Walmart intends to give the retailer $136 million for 12 store leases and one owned property, totaling 1.6 million sq. ft.
In addition, Walmart plans to buy another distribution center, adding 1.4 million sq. ft., reported the Wall Street Journal. Walmart expects to invest an additional $153 million in renovations, bringing the total investment to $289 million.
"Walmart is committed to the Canadian market, and this agreement helps us accelerate our growth plans," Walmart Canada Chief Executive Dirk Van den Berghe told the Wall Street Journal.
Target's decision to shutter all 133 stores in Canada came after a series of blunders, which included bad pricing decisions and a failure in customer loyalty.
Walmart has been growing its Canadian presence and in February announced it would open 29 supercenters—11 of which were opened before January ended—totaling about $280 million. Walmart currently operates 295 stores in Canada.
Where Target has failed, Walmart is continuing to expand its offerings in Canada. In 2014, the retailer added 33 new Grab and Go lockers in the greater Toronto area to help with holiday shopping. And last spring, Walmart Canada introduced low-cost legal services in select locations throughout Toronto.
-See this Wall Street Journal article
Walmart Canada to discontinue unlimited free shipping
Walmart slows Canadian expansion
Best Buy to shutter Future Shop stores in Canada
Walmart pledges a fresh start
Walmart to open 11 supercenters in Canada