Is the expansion of Walmart supercentres, other U.S. chains beneficial to Alberta?

Walmart is the latest American-born retailer with plans to expand in Alberta.

The retail giant announced a $6.5-billion project to build dozens of new stores in Canada and three more supercentres in Calgary, Edmonton and Fort McMurray.

All three locations are expected to be operating by 2027.

“Walmart Canada is on an ambitious growth journey to serve even more Canadians — better and differently than ever before,” said a statement from Gui Loureiro, the regional CEO Walmart Canada, Chile, Mexico and Central America.

Walmart Canada currently has over 400 stores and more than 100,000 workers in the country.

Paul Messinger, a marketing business economics professor at the University of Alberta, said the retail sector is wedged between recovering from pandemic losses years later and competing with quick delivery service companies such as Amazon.

He calls the move strategic as Walmart competes with other fast-growing retailers like Costco and Amazon.

He believes Walmart has been effective with its expansion compared to other retail stores, such as Target, which did not survive operating in Canada.

“Walmart has decided it’s worth the risk. It’s considerable risk for such a big investment,” he said. “Six-and-a-half billion dollars is major chunk of cash that is going into Canada.”

Messinger said the expansion will be good for Albertans and its economy.

“We’ll have more employment, we’ll be buying some of the profits. Some will end up in the United States. Most will stay in Canada, I expect,” he said.

“I wouldn’t worry it is stealing money from Canada, but really it shows Canada is a growth area.”

However, the announcement is being met with trepidation by local shop owners.

“We’re losing the mom-and-pop stores. We’re losing the small local businesses. Those are the businesses that create community,” said Bree Tetz, owner of Repeat Vintage in Leduc, roughly 20 kilometres south of Edmonton.

Tetz, who sells second-hand clothing, accessories and home decor at affordable prices, says she finds the influx of American retailers — especially ones selling cheaper, discount-type merchandise — setting up shop in Alberta concerning.

“Yes, you’re buying things at half price. Yes, you’re buying things for less. Yes, you’re getting things quickly.

Tetz believes the expansion is part of the trajectory of fast fashion — think brick-and-mortar stores like Zara or H&M, or online retailers like Shein or Temu — which she believes damages consumers.

“They’re encouraging overconsumption. They’re encouraging you to buy more, spend less, and also get things where you want now,” Tetz said.

When you shop at small businesses, we’re curating these products for you. We’re buying you the best-of-the-best products.”

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Earlier this week, CBRE, a commercial real estate agency, noted a trend of fast-service American franchises moving to Edmonton.

2024 saw fast-casual restaurant brands Chipotle, Krispy Kreme and Firehouse Subs all open locations in the city.

CBRE sales representative Matthew Hanson said he isn’t surprised, given the city’s more affordable cost of living and population growth, compared to the rest of Canada.

Hanson believes there will be ebb and flow, and a possibility that big box stores could hurt local businesses.

While the expansion of big retailers will mean more competition for shops of all sizes, it could also drive up sales.

“I will also argue that some of these big centres will attract new talent because they know that they would succeed next to that as a synergy relationship,” Hanson said.

Three new Walmart supercentres will also be opened throughout 2025 in Ontario. It’s the U.S. company’s largest investment since they started operating north of the border 30 years ago.