http://www.calgaryherald.com/business/Walmart+planning+115M+Balzac+plant/1576231/story.html
According to the Calgary Herald, Walmart Canada is going to build a distribution centre in Balzac, Alberta, for $115 million. It will service Walmart's western Canadian market. Set to be 400 000 square feet and a place for fresh food to support expansions, 1 400 jobs will be generated, 800 of which are for trade and construction and 600 more once the centre is in full operation at the end of next year. After this facility is built, it will service the 120 Walmarts in Canada, with approximately 1 million cases of products going through each week. In the last year, Walmart Canada has expanded its distribution network by investing $220 million, which supply 312 stores in Canada and employ over 3 200 people.
Walmart Canada's headquarters may be in Ontario, but the company is entirely owned by Walmart of the United States. This makes Walmart a company of foreign ownership, which is when foreign residents invest into Canadian assets and financial securities. This $115 million distribution centre is no exception to that. Benefits of foreign investment in Canada have been listed in this chapter, which can be applied to the upcoming facility in Balzac. Of course, by investing millions of dollars into Canada, Walmart gains access to their capital and employment will increase with the building of this facility. As noted in the article, 1 400 jobs will be open for people during and after construction. Not only that, but increased competition and improved productivity will be benefits for Walmart Canada. By building one of the biggest perishable-food buildings in the nation, Walmart will be able to have an edge on fresh food for the western Walmarts in Canada. Since Walmart already prides itself with its low prices, building a facility to keep food fresh can only help lower prices even more.
I've actually only ever been to Walmart once in my life and it was because the newest one opened up and it's really close to where I live. I was amazed at the variety of goods they sell, ranging from bread and yogurt to cleaning products to clothes and purses. I suppose it's a good idea that Walmart Canada is deciding to build a distribution centre because then the food sections of the Walmarts will operate and function better than it already does. Perhaps expansions in the food department of each store will be in place as well. The price of certain foods would probably go down as well but with the same quality, which will certainly please customers.
2 comments:
I agree that the expansion of walmart wil be able to create more employment, but the idea of walmart being a foreign ownership may come as a drawback to Canada, since the expansion or establisment of a new buisnesses from foreign country on canadian soil would mean that fraction of our economy is owned by foreigners (Mostly America).Evidently if foreign countries suffered reccessional or depression period, we would feel the effects to our economy as well. Another drawback is that walmart being owned by america would establish a higher interest based income to America then Canada.
Despite the Walmart Centre in Alberta being owned by the company in the United States, it is actually pretty beneficial to the Canadian economy as well. Sure, the profit from the company will to go down to our neighbouring country and help with their economy, but with the new building complex, a lot of jobs will be created. Just like your article states, 1400 jobs will generated. Having these foreign investments in Canada is very positive. Since these foreign-owned companies are situated in Canada, it will increase exports. By having more exports, the foreign-exchange value of the Canadian dollar will be strengthened. In addition, having this foreign-owned company in Alberta will provide more competition with Canadian-owned companies. When there is more competition, it tends to result in prices that are lower and products that are better-quality. With these three benefits: employment, currency value, and competition, it is beneficial to Canada that the United States owned Walmarts is opening in Alberta.
K. Li
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