MANKATO, MN - The rivalry between Wal-Mart and Target heated up Tuesday with the groundbreaking of Wal-Mart's first Minnasota distribution center in the city of Mankato. The $75 million dollar investment in the home state of Minneapolis-based Target will allow Wal-Mart to both grow its market in the upper Midwest while putting pressure on one of its biggest competitors.

Echoing this sentiment, Wal-Mart's Director of Corporate Communication Della Garcia said, "The distribution center that we're opening in Mankato is a very visible signal of our growth in the upper Midwest."

As AndNowUKnow covered in an article last week, increasing U.S. growth is a top priority of Wal-Mart after a series of unimpressive fiscal quarters. For more on that story, click here. 

The new distribution center allows Wal-Mart to focus on these goals while simultaneously “[putting] pressure on their arch-enemy, which is Target,” stated Dave Brennan of the Institute for Retailing Excellence.

Analysts who spoke with reporters at the Mankato Free Press estimate that the new distribution center will bring at least 300 new jobs to Mankato, a number which could rise because of the truck maintenance facility Wal-Mart also intends to build in the region. There are also plans to expand the distribution center with a dry-goods facility, although these plans are not finalized.

Paul Vogel, the Mankato Community Development Director was excited about the project, saying that "it's about another opportunity for people to work."

According to sources at the Minneapolis/St. Paul Business Journal, the new distribution center is not the only plan Wal-Mart has in store for Minnesota. Della Garcia hinted that there are “a few more” undisclosed projects in mind for the future.

Wal-Mart already owns and operates 82 stores in the Minnesota region, 22 of which have been added since 2008. Target owns 75 Minnesota locations.

Stay tuned to AndNowUKnow for further updates on this continued retail rivalry.  

Wal-Mart