Walmart Focusing on Intl. Growth, Supercenter Formats

Walmart Stores Inc. (Bentonville, Ark.) reports its U.S. operating segment has delivered three consecutive months of positive same store sales. The results were shared during its annual conference for the investment community.

Same-store sales have been positive since July, Walmart U.S. president and ceo Bill Simon said during the meeting. The company has updated its capital spending forecast to between $13.0 and $14.0 billion for the fiscal year ending Jan. 31, 2012. Forecasted sales growth is expected between 5 and 7 percent for fiscal year 2013.

The world’s largest retailer says comparable store sales growth remains the first growth priority for the company's three operating segments, along with new store growth through disciplined, more productive capital spending. “We continue to prioritize growth, leverage and returns in our commitment to increase shareholder value,” says Walmart Stores president and ceo Mike Duke. “We will grow comparable store sales across our three operating segments, and we will leverage innovation, systems and processes to improve our overall productivity.”

In addition, the company will focus on expansion, particularly in emerging markets, such as China, Brazil and Mexico. The retailer plans to add between 36 and 39 million square feet globally during the 2012 fiscal year.

“Supercenters remain the primary growth vehicle for Walmart U.S. and the company will reduce construction costs on the new stores through value-engineering initiatives,” says Simon. “We have identified a large number of potential Neighborhood Market opportunities, and we plan to open between 80 and 100 medium to small formats next year.”

Walmart U.S. will also review the success of its Express format, which accounts for five locations with plans to add six more before the end of the fiscal year. “We will continue to pursue a balanced approach to market share growth in low, medium and higher share markets,” says Simon. “In addition, we continue to reduce the cost and scope of our remodel program to increase efficiency and to minimize customer disruption.”