Wal-Mart Stores said on Tuesday it would invest about C$500 million ($452 million) this year to strengthen its presence in Canada, creating more than 7,500 jobs including construction.
The investments include more than C$376 million for store projects, C$91 million for distribution networks to expand fresh food capability and C$31 million for e-commerce projects.
(Read more: Time to close Wal-Mart stores? Analysts think so)
Wal-Mart's expansion plans comes a week after Target said it would open nine new stores across Canada, adding to the 124 it opened last year.
Over the past year U.S. retailers such as Wal-Mart and Target have expanded in Canada, posing a threat to local retailers such as Loblaw, the country's largest grocer, and Empire's Sobeys grocery chain.