Home / Markets / Industries / Retail

Thursday, October 22, 2009

Wal-Mart Announces Growth and Expansion Plans

By Kathryn Glass

FOXBusiness

The world’s largest retailer announced its plans for growth and expansion for next year at its annual investor conference, Thursday, according to a release from the company.

Wal-Mart (WMT) plans to focus on growing the amount of store square footage it has internationally. In the United States, the company said it will expand its square footage by 11 million square feet, and it plans to grow international square footage by 25 million square feet. That compares to this year’s projected growth of 14 million square feet and 23 million square feet in US and international stores, respectively.

"Our plan for growth is clearly intended to increase shareholder value," said Tom Schoewe, executive vice president and chief financial officer, in a statement. "In the U.S., we're building new stores and accelerating the pace of our remodels because they have been so successful at winning and retaining customers. We're stepping up growth in our International operations to take advantage of growing economies and opportunities in emerging markets, such as China and Brazil."

The company forecasts capital expenditures for the next fiscal year to range between $13 billion and $15 billion, compared to the current year’s spending, projected to be between $12.5 billion and $13.1 billion.

Earlier in the day, Wal-Mart said it would cut prices each week throughout the holidays.

"We will not be beaten on price," said Eduardo Castro-Wright, vice chairman of Wal-Mart Stores Inc. and leader of its U.S. business, in a statement.

Shares of Wal-Mart fell 21 cents or 0.41% to close at $50.42 at the end of the session, Thursday.

Fox Business Video

- The Crisis With 20/20 Hindsight
- Nov 21, 2009
  
  FOXBusiness.com LIVE
- Jerry Rice Talks Career
- Nov 21, 2009
  
  NFL Receiver on career on the gridiron
- John O'Hurley as Venture Capitalist
- Nov 21, 2009
  
  Comedian on life as venture capitalist
- Excess Spending in Congress
- Nov 21, 2009
  
  Saving $100 Million
- Cavuto Business Report 11-20-09
- Nov 21, 2009
  
  Business Report: Cavuto