Wal-Mart, the world’s largest retailer, has warned that sales growth will slow over the next three years.
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The US giant also cut its plans for capital expenditure with less cash earmarked for opening new stores in the US.
The company expects to open 195 supercenters in the United States this year, down 30% from the 281 opened during its last fiscal year.
CFO Tom Schoewe said Wal-Mart would focus instead on opening more stores overseas. Wal-Mart said it would spend US$14-15bn worldwide in each of the next two years.
“We continue to focus on increasing operating cash flow, in addition to moderating capital expenditures,” Schoewe said.
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By GlobalData“This strategy will increase free cash flow, allowing Wal-Mart to fund strategic acquisitions and provide returns for our shareholders through dividends and share repurchase.”
In August, Wal-Mart warned that its full-year profits would not meet its initial targets thanks to consumers worldwide tightening their belts.
