Wal-Mart Stores, Inc. (NYSE: WMT) has been having its analyst meeting this week and we now have a release from the company showing its growth plan next year. This also updates the cap-ex fiscal year ending on Jan. 31, 2011. As Wal-Mart is one of the stocks that the rally has left behind, it is not that surprising that the company is not just sitting on its hands.
The world’s largest retailer put its total cap-ex at $12.5 to $13.1 billion for the fiscal year ending January 31, 2010, but is raising that figure to a more aggressive $13 to $15 billion for the fiscal year ending January 31, 2011. This includes building new stores in the U.S. and accelerates its remodels. The company is also going to focus on key emerging markets, such as China and Brazil. The growth of international expansion does not look that much different than the US growth on a percentage basis.
For 2010, it expects to add approximately 38 million square feet globally versus 44 million square feet added in the prior year; it expects to increase global square footage by approximately 37 million square feet in fiscal year 2011.
Wal-Mart will continue in the U.S. to focus on further improving the returns of its supercenter format through remodels of existing stores and by accelerating growth of new store designs. Walmart International noted a focus on markets in China and Brazil in a variety of formats from supercenters to small grocery stores.
Full details released at the Investment Community meeting can be found at the Wal-Mart investor site.
JON C. OGG
OCTOBER 22, 2009
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