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Winnipeg Free Press - PRINT EDITION

Walmart spending $750M on stores

By: Staff Writer

Posted: 02/8/2012 1:00 AM | Comments: 0 (including replies)

WALMART Canada plans to spend more than $750 million this year to open, relocate or remodel 73 retail stores, including former Zellers locations.

The world's biggest retailer said Tuesday the initiative will create more than 14,000 jobs -- about 3,500 new store positions and 10,500 in the trades and construction sector.

The hiring spree would be a big help to Canada's job picture, as the January unemployment rate rose to 7.6 per cent as the economy essentially stood still.

Walmart already employs about 85,000 Canadians and is the country's largest department store retailer by sales. It is part of the Wal-Mart Stores Inc. (NYSE:WMT) retail giant based in Arkansas that operates around the world.

Included on the list of projects for 2012 are 39 Zellers locations the Canadian subsidiary bought last year.

"This year we are able to grow at a record rate, in part because we were able to secure 39 leaseholds for former Zellers stores, most of which will open as Walmarts this year," said Walmart Canada spokeswoman Rosalyn Carneiro.

The company said more than half of the 73 projects involve converting existing stores into Walmart supercentres, which offer an array of groceries as well as general merchandise.

The retailer opened its first Canadian supercentres in Ontario in 2006 and has since ramped up expansion plans for the large-store concept.

The company has already converted at least three of its six Winnipeg stores into supercentres, and another company spokeswoman said Tuesday more Manitoba outlets will be converted this year.

The company has 13 stores in the province, but Susan Schutta wouldn't say which ones are on this year's conversion list, because some projects are still awaiting municipal approval.

"But Manitoba is an important market to us, and certainly we hope to include some Manitoba stores on the list of 73 projects."

She said there are no plans to build any new Walmart stores in the province this year, and none of the Zellers stores it acquired last year are in Manitoba.

Carneiro said introducing supercentres to more markets across Canada continues to be an important part of Walmart's strategy.

"Canadians have responded very favourably to our supercentre concept. Our research tells us that our customers enjoy the one-stop shopping offer."

The expansion comes as competition in the Canadian retail market will heat up with next year's entry of fellow U.S. discount retailer Target, which plans to open 125 to 135 stores in Canada.

-- The Canadian Press, with files by Murray McNeill

Republished from the Winnipeg Free Press print edition February 8, 2012 B4

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