Walmart Canada says it is abandoning plans to open a new fulfilment centre in Quebec.
The U.S. retail giant was due to spend $100 million on the facility slated for the Montreal-area municipality of Vaudreuil-Dorion. It was expected to open early this year.
Walmart Canada spokesperson Sarah Kennedy confirmed the change of plans in an emailed statement, but did not say what prompted the company’s decision.
Kennedy says the company will instead focus its attention on accelerating upgrades to its network of stores, including locations in Quebec.
She says Walmart has plans to invest about $100 million to upgrade eight stores in Quebec by the end of the company’s next fiscal year.
The announcement is a surprise, said Luc Boyer.
Boyer is director of economic development and an industrial commissioner with Développement Vaudreuil-Soulanges. The organization’s mission is to foster economic growth in the area by initiating large-scale, collaborative projects.
Now there’s a large empty building owned by Walmart that is sitting on rented land. Walmart will be able to sublet the building, but that’s not a concern, he said.
“It’s always a disappointment when a big company like Walmart decides to start a project in the area and then changes its mind,” said Boyer.
“On the other hand, the location is in a prime spot and we are pretty confident it won’t remain empty for a long time.”
Boyer said his organization hasn’t spoken with Walmart yet, so it’s not clear why the company changed its mind. However, he said it does not appear that traffic-clogging construction on the Île-aux-Tourtes Bridge is behind the decision.
He said it is more likely related to the general economic situation.
Overall, Boyer said he does not think Walmart’s decision will have a large impact on the local economy because the building will likely be rented.