Dive Summary:

• The ‘Target Effect’ may be cutting into Walmart profits throughout mainland Canada, as same-store sales, operating income and foot traffic all saw declines.
• Walmart is the country’s largets mass merchant but saw declines during Target’s first quarter of operations, opening its first 24 Ontario locations in March.
• “Net sales grew 6.1%, but Canada had a decline in operating income and did not leverage expenses,” Doug McMillon, president and chief executive of Walmart International

From the article:

Walmart Canada had prepared extensively for Target’s arrival in the past year by significantly boosting its assortment of food and by renovating and adding multiple stores, upping its store count by 13.8% as it took over 39 Zellers stores and boosting overall square footage in the Canadian market by a whopping 10.6%.