• Supermarket news, Wednesday, March 7, 2012 10:15 AM

Supermarket retailers in Canada are particularly vulnerable to disruption as a result of the ongoing and planned expansions of U.S. retail brands Target and Wal-Mart there, according to a report released this week by BMO Capital Markets. Wal-Mart Stores, based in Bentonville, Ark., has captured around 5.9% of the Canadian grocery market since it first made its arrival in Canada via an acquisition in 1994, according to BMO. It stands to gain greater share as it continues an ongoing effort to convert stores from general merchandise stores to supercenters.

BMO said 164 of Wal-Mart’s 300-plus stores in Canada today operate as supercenters, and that number could grow as Wal-Mart continues converting them at a pace of around 40 per year. The firm predicted Wal-Mart could control well over 10% of the Canadian grocery market by the time its store conversions are complete. Target is expected to make its Canadian debut early in 2013, opening 130 stores at former Zellers sites.

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