US: Wal-Mart to speed up remodelling in US
By: just-food.com | 23 October 2009
Wal-Mart has outlined plans to speed up its programme of remodelling its domestic stores amid claims that the new-look outlets are attracting new customers.
The world's largest retailer said yesterday (22 October) that it plans to spend between US$6.6bn and $6.8bn on capital expenditure in the US over its fiscal 2010 period. Actual capital spending in the US for fiscal 2009 stands at $5.8bn.
Capex for Wal-Mart's Sam's Club warehouse arm is $800m for the current fiscal year and the company said spending would be between $800m and $900m in fiscal 2010.
"In the US, we're building new stores and accelerating the pace of our remodels because they have been so successful at winning and retaining customers," CFO Tom Schoewe said.
Wal-Mart's total capex budget stands at $11.5bn in fiscal 2009 and is set to rise to $12.5bn and $13.1bn next year.
The retailer's international operations will receive $4.2-4.4bn in capital spending next year - up from the $4.1bn for fiscal 2009.
However, next year, Wal-Mart's international square footage growth will outpace that expected domestically.
Wal-Mart sees its international business growing by 23m square feet of space in 2010 - up from growth of 19m in fiscal 2009.
Its domestic business is set to grow by 23m square feet this year but by 14m square feet in fiscal 2010.
"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," Schoewe added.
Sectors: Emerging markets, Retail
Companies: Wal-Mart
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