Walmart Canada, the subsidiary of the world’s biggest retailer, was established in 1994 when Woolco Company opened its first store in Ontario. Since then, Walmart took over Woolco using an acquisition mode, and numerous stores with a broad assortment that includes such commonly known brands as Apple or Sam’s Choice were opened all over the country.
Walmart Canada used the stage of the Green Business Summit to introduce new stability tendencies, some of which are influencing the Canadian trading community and leading to profitability. For example, according to Roberts and Berg, in Balzac, Alberta Sustainable Product Index was ushered by Walmart in order to help consumers to estimate products they buy every day (133). It was the first attempt outside the USA to value the quality of purchasing products. Walmart Canada president claims, “We have an excellent opportunity to usher in a new era of collaboration and sharing when it comes to green business practices” (Roberts and Berg 133).
Nowadays, the expansion of Walmart in Canada continues despite the fact that compared with more than $750 million in 2012, it invested just $450 million in 2014, although Canadian locations comprised 388 stores except 379 (Location Group Research 152). Walmart Annual Report 2015 states that there are 394 retailers today (63). In the 2015 fiscal year, Walmart is to spend $350 million to purchase 13 former Target stores in Canada in order of supercenter creation.
This renovation requires hiring about 4900 people for construction work, distribution center, and sales staff (“Walmart to Buy 13 Former Target Canada Stores and a Distribution Centre” 2). However, there are some risks concerned with foreign units.
According to Walmart Annual Report 2015, “movements in currency exchange rates and the related impact on the translation of the balance sheets of the Company’s subsidiaries including Canada were the primary cause of the $3.6 billion net loss in the currency translation” (31). In fiscal 2015, Walmart’s Canada profits increased by 19 percent generating approximately $16 billion cash flow (Walmart Annual Report 2015 16).
Walmart Canada’s strategy serves three basic purposes. Their culture based on respect for individuals regardless of age, gender, and nation. Friendly and helpful service to customers is the second corporate mission that provides the company with a good image and profit. Additionally, continuous improvements, along with new technologies put in the work of the company, testify striving for excellence (Walmart Canada). For instance, Walmart Canada added in its assortment home furniture segment, creating brand awareness and consumers loyalty towards the company.
Moreover, in order to reduce deficiency in supply in stores, Walmart starts utilizing its satellite communication system in Canada to control the implements currently. Walmart Canada can make high profits with low risks for the retailer in several discount stores. Canadian Walmart promotional vehicles include free coupons, promo codes, and flyers that everyone could find online or in different brochures, and then redeem at any participating retailer. “Everyday Low Price” and “Save money. Live better” mottoes are the key strategy for Walmart (“Off Target” 8).
Along with coupons, there are numerous after-sale rebate offers, combination promotions (e.g., gift with purchase), preferred customer discounts, or random discounts (e.g., scratch and save events), and clearance sales promoted by the retailer. Online shopping and day-and-night support are also provided for the customer’s convenience.
In conclusion, it should be noted that Walmart Canada used an overtaking competitor entry mode to expand its stores in the Canadian retail community. Besides, the retailer has a strong business strategy that leads to company success.
Works Cited
Location Group Research. Retail Market Study North and Latin America 2014, San Diego, Calif.: HP Media Group, 2014. Print.
“Off Target.” The Economist. The Economist, Web.
Roberts, Bryan R., and Natalie Berg. Walmart Key Insights and Practical Lessons from the World’s Largest Retailer, London: Kogan Page, 2012. Print.
Walmart Annual Report 2015. 2015. PDF file. Web.
Walmart Canada. Web.
“Walmart to Buy 13 Former Target Canada Stores and a Distribution Centre.” CBC News. CBC News, Web.