During the kick-off of a two-day analysts’ conference this week, Walmart Stores Inc. (Bentonville, Ark.) announced plans to open smaller U.S. stores with reduced merchandise assortments in an effort to expand into urban markets. The world’s largest retailer also says it will reduce prices heading into the holiday season on toys, groceries and other hot-selling items through price promotions that will accelerate as Christmas draws nearer.
According to The Wall Street Journal, ceo Mike Duke says the company is making an aggressive effort to return to the high-volume discount retailing formula pioneered by its founder Sam Walton.
During the analysts meeting, Walmart announced it will spend between $1.4 billion and $1.6 billion on new U.S. stores in its next fiscal year, excluding Sam’s Club stores. That figure is lower than the estimated $1.6 to $1.7 billion spent this year, according to The Journal.
Few specifics regarding the initiatives were released, but the company says the efforts are part of its focus on staying robust once the economy improves. Duke says price cutting will attract more consumers and help the retailer's estimated $400 billion annual sales to grow.