Joseph Aversa

Wal-Mart is the largest global retailer with stores operating in North America, South America, Asia, and Europe. They expanded into Canada in 1994 and have since grown to be Canada's second largest retailer in terms of net sales and the move is widely regarded as one of the most successful international expansions. Although many studies have focussed on the growth patterns of the various Wal-Mart formats within their domestic market, very little has been done in identifying the location strategies and competitive impacts experienced in Canada. The paper provides a better understanding of the market strategies that have influenced their relative success experienced within Canada. It assesses the population characteristics and retail composition of surrounding areas for Wal-Mart and Wal-Mart Supercentre store trade areas within the Greater Toronto Area. As a result, the location preferences for both formats are detailed, as well as the effects that these formats have had on the surrounding competitive environment. The paper highlights the target markets for the Wal-Mart formats and identifies distinct differences between their urban and suburban locations. The urban locations were found to be in lower income areas while the suburban stores were in more affluent neighbourhoods. Furthermore, the study illustrated no real differences between the Wal-Mart trade areas and that of Wal-Mart Supercentre locations.