Walmart Expanding in Canada
WalMart is feeling positive about the Canadian retail market in 2014 — and their battle with Costco and Amazon. They’re expanding their retail service in Canada and have just announced they will spend almost a half billion dollars in new store construction and renovations in 2014/2015.
While it was known that they would be expanding across Canada, the total amount wasn’t certain until just a few days ago. This is a major expansion that includes 35 supercentre projects and $31 million for ecommerce projects.
It’s been 20 years since Walmart entered Canada, and they continue to be the number one retailer here. Expansion in 2013, lead to growth in net sales of 3.8%. However, revenue per square foot retail space fell 1.3% and foot traffic fell 1.5%.
The Canadian grocery, pharmacy and clothing retail sectors will become more fiercely competitive with Walmart, Costco, Loblaws, Metro, Sobey’s and newcomer Target Stores each hungry for the 35 million consumer market here. Walmart is into a battle online as well with Amazon.
It’s hard to forecast a retailing outlook for the next 5 years (okay maybe you can), but Walmart believes prices are the pivotal issue in retail shopping. We might contend that value is the variable to look at. Shelley Broader, President of Walmart Canada is quoted in the Calgary Herald: “Customers in every region of Canada are looking to save money on their entire list of shopping needs,” said Shelley Broader,
Walmart Canada’s president and chief executive, said in a statement. “Delivering on our commitment to help lower the cost of living is our top priority, and our growing network of supercentres and our expanding walmart.ca offering enable us to do just that.”
Walmart already employs 95,000 Canadians and plans to add 7500 more positions in its stores.
It’s still vital for manufacturers and brands big and small to get on Walmart shelves. Learn more about them, their packaging guidelines and the Get on the Shelf program.
There’s always something going on in the packaging arena, from rebranding and new brands to packaging innovation, to improvements in retail marketing. Ecommerce and improvements in digital communications is changing the retail landscape quickly. We’re going from online coupons to qr codes on packaging to near field communications for inventory control and marketing.
Smart manufacturers and brand managers are looking for packaging that does more than contain or protect products. They want their packaging including their POP to sell.