Prime Highlights:
Walmart Canada sells fleet business to Canada Cartage as part of a strategy to focus on retail expansion and supply chain improvements.
Canada Cartage will manage Walmart’s Canadian fleet operations, which serve over 400 stores across the country.
Key Background:
Walmart Canada has announced the sale of its fleet business to Canada Cartage, a move that aligns with the retailer’s strategy to focus on expanding its retail stores and optimizing its supply chain operations across the country. The deal, expected to close in the coming weeks, will see Canada Cartage assume responsibility for the fleet that delivers goods to over 400 Walmart stores throughout Canada.
According to Sarah Kennedy, Senior Director of External and Internal Communications for Walmart Canada, this transition is part of the company’s broader effort to streamline its operations. Canada Cartage, a well-established Canadian logistics provider with over 110 years of experience, will manage the fleet business as a dedicated operation. In addition, all current employees of Walmart’s fleet will be offered continued employment with the same wages and benefits.
David Zavitz, Chief Administration Officer at Canada Cartage, emphasized that the company’s extensive history in providing fleet services to retailers, grocers, and manufacturers across Canada would enhance its ability to serve Walmart’s needs. Zavitz also highlighted the flexibility Canada Cartage can offer in managing delivery services, further strengthening the partnership.
Matt Kelly, VP of Supply Chain at Walmart Canada, expressed optimism about the deal, noting that Canada Cartage’s capabilities would improve service and provide exciting growth opportunities for Walmart’s fleet employees. This move follows Walmart’s decision in February 2024 to sell its intermodal assets to J.B. Hunt Transport Services, a strategic decision aimed at increasing volume and capacity for both companies. The divestment of the fleet business is expected to help Walmart Canada focus on its core retail and supply chain objectives, enhancing efficiency and reinforcing its position in the Canadian market.