MISSISSAUGA, Ont. — Walmart Canada plans to spend more than $750 million this year to open, relocate or remodel 73 retail stores, including former Zellers locations.

The world's biggest retailer said Tuesday the initiative will create more than 14,000 jobs when factoring in store employees, as well as trade and construction jobs. The hiring spree would be a big help to Canada's job picture as the unemployment rate hovers around 7.6 per cent.

Walmart already employs about 85,000 Canadians.

Included on the list of stores are 39 Zellers locations that Walmart purchased last year.

Walmart said more than half of the 73 projects will become supercentres, which offer an array of groceries as well as general merchandise. The retailer opened its first Canadian supercentres in Ontario in 2006, and has since ramped up expansion plans for the large-store concept.

"This is an exciting year for Walmart Canada," said Shelley Broader, president and CEO of Walmart Canada.

"As the country's fastest growing retailer, every year we create thousands of new jobs, spend billions of dollars with Canadian suppliers, and invest millions in Canadian communities."

The expansion comes as competition in the Canadian retail market heats up with the entry of fellow discount retailer Target next year.

The company plans to open 125 to 135 stores.

Target has purchased the leasehold interests of 189 sites currently operated by Zellers Inc. and it says about $10 million to $11 million will be invested to remodel each facility.

Walmart operates 333 stores in Canada, which includes 164 supercentres.

The U.S. retail king had already announced last January that it plans to spend $500 million to open 40 more Canadian stores that combine general merchandise and groceries.

That could intensify competition especially in smaller towns where there are not very many chains.

Canada's grocery giants have complained about Walmart's entry into the supermarket space for adding pressure in a super-competitive environment, in which chains are forced to maintain low margins on top selling items to attract shoppers.

Walmart dedicates a team to making sure its prices are 10 per cent cheaper than the average in Canada. The retailer monitors flyers and prices at some 60 local competitors across the country, including those owned by Loblaw Co. (TSX:L), Metro Inc. (TSX:MRU.A), and Sobeys (TSX:EMP.A).

Grocery chains have increased promotions over the past year to attract cash-strapped consumers and as they face fierce competition, particularly in Ontario, from each other and retailers like Zellers and Shoppers Drug Mart (TSX:SC) who are increasing their food offerings.

Walmart will not only face competition from Canadian grocers and Target, but also from a number of other U.S. retailers who are eyeing expansion opportunities in Canada.