Market News

Wal-Mart Announces Superstores

Wal-Mart Canada Corp. has announced plans to open supercentres late next year, complete with an expanded grocery section. The first of three supercentres will open in London, Ont. It has long been speculated that the retail behemoth would import the massive discount stores that populate the landscape south of the border, to Canada. Some sources suggest that Wal-Mart may introduce supercentres in Canada by converting its six Sam's Club stores. Loblaw and other supermarket chains have enhanced their discount divisions and lowered their prices in recent years, in preparation of the supercentre's crossing of the border. In the United States, supercentres have a full selection of grocery products along with general merchandise. They have hurt major grocery chains there by taking an ever-larger market share. It is widely expected that supercentre's arrival in Canada will result in eroded profit margins and an intensified promotional activity across the board. Source: Canadian Grocer E-Newsletter, December 23, 2005.