Wal-Mart to add 600 locations, 60 mn. sq. ft.

WallMart StoreWal-Mart, the world’s largest retail chain with annual revenue of US$ 235.38 Bn.-(ttm), more than 6600 stores worldwide, more than 1.8 mn. employees in 15 countries and more than 25 mn. customers every day, is planning in fiscal 2008 (Feb 2007-Jan 2008) to open more than 600 new locations, increase capex by 2 to 4% and add 60 mn. sq. ft. shopping space  through a variety of formats worldwide excluding any possible future acquisitions. (Source: Yahoo Biz).

walmart_logo“The Company will continue growing through new unit expansion, acquisitions and same-store sales, said Tom Schoewe, Wal-Mart Stores, Inc. executive vice president and chief financial officer.

“In the past three years, capital expenditure growth has been higher than square footage and sales growth,” Schoewe explained. “During our next fiscal year, we expect that square footage growth will be around 7.5 percent (10% international, 7% U.S.).“Our long-term goal is to continue to have our capital expenditures grow at a rate equal to or less than sales growth,” he added. “Additionally, over time, we expect our new capital efficiency model to reduce the impact of cannibalization.”

In outlining the expansion plan at Wal-Mart’s 13th Annual Fall Analysts’ and Institutional Investors’ Meeting, Schoewe emphasized that the Company has plenty of room to grow, both in the United States and internationally.

“Supercenters will continue to be our primary driver for expansion in the United States,” Schoewe said. “Internationally, our unit growth will cover a wide variety of formats, from large units like Wal-Mart supercenters and Sam’s Clubs, to smaller retail locations,” added Schoewe.

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