Riocan has proposed a plan to build a three-storey retail complex at Bathurst and Nassau st. The chief tenant would be Walmart, occupying the second and third floors of the 125,000 sq.ft. building. The ground level would consist of convenience retail such as banks and drugstores, while underground housed a 300 car parking garage (Toronto Star).
Doug McMillon, President & CEO, Walmart International
"Moving to Canada, Walmart Canada faced a challenging quarter, as consumer spending weakened due to higher household debt levels. Our results were impacted by the unseasonably colder weather this year versus unseasonably warm weather last year and the leap year overlap. Net sales grew 6.1%, but Canada had a decline in operating income and did not leverage expenses.
Comparable sales decreased 1.3%, with comp ticket up 0.7%, and comp traffic declining 2%. We had strong comp sales in food, consumables, and home lines, but continue to see softer sales in entertainment. The colder weather also impacted sales in hard lines and apparel. However, in the first quarter’s challenging environment, we drove market share gains of 120 basis points and the Nielsen Company measured categories of “food, consumables, and health and wellness.
Regarding profitability, gross profit rate increased due to improved initial margins from private label and direct import gains, as well as reduced shrink. However, operating expenses grew faster than sales, primarily due to negative comp store sales, the lapping of costs related to the year-over-year growth in new store base, and investments in ecommerce."
Walmart Earnings Call May 16th 2013 http://seekingalpha.com/article/1439851-walmart-ceo-discusses-q1-2013-results-earnings-call-transcript?part=single
Walmart released Q4 results on Feb 21st 2013
Below are the specifics for Walmart Canada,
Doug McMillon, Walmart International President and CEO, Feb 21st Conference Call
Walmart Canada faced a challenging quarter. Continued to grow share in measured categories in a slower overall market.
Net sales +5% Operating income grew faster than sales
Comp sales -1.9% Strong comp sales in food, consumables and home lines. Softer sales in entertainment
Average ticket +0.1%
Unseasonable weather impacted sales in hardlines and apparel
Lower than anticipated boxing day sales due to challenges in the entertainment business
Gross profit increased due to improved initial margins and lower markdown activity
Expenses increased faster than sales primarily due to pre opening costs associated with the expansion program
As of the end of Jan 2013:
All Zellers store conversions are complete
Zellers conversions 12 are supercentres and 27 are discount stores
379 stores open, increased store base by 46 stores for the year
Complete Q4 transcript is here
|Walmart Canada Performance Summary|
|Period||Period Ending||Total Sales ∆||Ticket ∆||Comps||Traffic ∆|
|Source: Walmart Quarterly Investor Calls
Number of Walmart locations within 15 minutes of Proposed/Pending Target
- No Target within 15 minutes: 177 Walmart Locations
- 1 Target within 15 minutes: 80 Walmart Locations
- 2 or more Target locations within 15 minutes: 82 Walmart Locations
- The most "Targetted": Burlington Walmart Superstore is within 15 minutes of five proposed Target locations
Walmart's Reaction to Increased Competition
- Walmart announces plans to complete 73 locations by January, 2013. 39 of these locations will be leases aquired from Target (Canada Newswire)
- Walmart launches magazine in April 2013, set for 6 issues per year, highlighting Walmart products (Toronto Star)
- In January 2013 Walmart announces plans to complete 37 new superstores by the end of January 2014, bringing their store count to 388 by that date (Canada Newswire)
- Walmart dedicates itself to promoting a "green image" by using renewable energy (Walmart)
- Has increased the number of baby products and related sales to maintain a large share of the baby goods market (Globe and Mail)
- Walmart announces their plans to hire 4,000 new employees by the end of 2013, as well as the largest sale in Walmart Canada history for July 2012 (RetailWire)
- Walmart opens remodeled store in Newmarket, with a 65 day turnaround (Toronto Star)
- Targeting more dense, urban areas, with smaller than average stores (Globe and Mail)