What: Canadian arm of retail giant commits historic CAD 6.5 billion to physical expansion and distribution infrastructure, targeting strategic growth through 2027.

Why it is important: The scale of investment reflects the strategic importance of the Canadian market for US retailers in the current political context.

Walmart Canada has announced its largest investment since entering the market nearly 30 years ago, committing CAD 6.5 billion (USD 4.51 billion) to expand its physical presence and enhance its supply chain capabilities. The plan includes building dozens of new stores, starting with five new supercenters in Ontario and Alberta by 2027, adding to its existing network of over 400 stores. The investment will also focus on modernising distribution centers to improve operational efficiency. This expansion follows Walmart's recent announcement of 150 new stores in the United States and aligns with broader industry trends of retailers expanding their physical presence to support growing delivery and curbside pickup services. The company has also announced the sale of its fleet business to Canada Cartage while maintaining its commitment to workforce development.

IADS Notes: Walmart Canada's CAD 6.5 billion investment aligns with the company's broader transformation strategy. December 2024 data shows Walmart achieving its best performance since 1998 through strategic diversification, while May 2024 revealed successful expansion of its Neighborhood Market format with larger, technology-enabled stores. This approach mirrors the company's December 2024 Chilean expansion, demonstrating a consistent international growth strategy. The investment's focus on supply chain modernisation builds on September 2024's launch of Multichannel Solutions, while February 2024's achievement of 20% reduction in last-mile delivery costs shows the company's commitment to operational efficiency. These developments highlight how Walmart is leveraging both physical expansion and technological innovation to strengthen its market position across global markets.

Walmart Canada to invest more than USD 4 bln to expand stores, supply chain