More Wal-Mart Supercenters Planned For Canada

Ontario, Canada (AHN) - Wal-Mart Canada announced on Thursday plans to open 25 to 27 more supercenters throughout the country this year.

While Wal-Mart's full supermarket and wide array of electronics, toys, clothing and houseware business model helps boost the sales of Canada's largest discount retailer, its expansion will likely affect the sales of smaller groceries and retail outlets.

David Hartley, an analyst at BMO Capital Markets, said, quoted by the Toronto Star, "The opening of Wal-Mart Supercenters is expected to be a long-term threat to the incumbent Canadian grocers... We believe the growth in grocery at Wal-Mart exceeds the high single digits you referenced, which would mean that they are stealing market share from someone."

Wal-Mart spokesperson Andrew Pelletier pointed out that the retail chain continues to enjoy expansion because despite soaring gas and food prices, consumers do not stop buying. They only change shopping patterns.

Half of the new stores would be in Ontario, where Wal-Mart opened its first superstore 18 months ago. With its existing 32 supercenters in Ontario, Alberta and British Columbia, the new superstores to be opened this year would boost the total to over 50 by January 2009. Counting smaller stores, Wal-Mart outlets now number 300 across Canada.