Wal-Mart back on the expansion trail
New markets targeted as US growth falters
Wal-Mart is targeting new territories in Europe and beyond as it seeks to counter sluggish sales growth on its home territory.
Wal-Mart chief executive Lee Scott has told the [i]Financial Times [/i]that the world’s biggest retailer has targeted acquisitions in central and eastern Europe as a means of entry to Russia, Poland and Hungary.
Scott said: “We have a portfolio we are working on. It doesn’t matter to us which of these will be first. We want all of them at some point.” A move into India is also on Wal-Mart’s agenda as it seeks 30 per cent of sales growth outside the US.
Wal-Mart is also planning to further expand the George clothing brand, acquired as part of its takeover of Asda in 1999, in the US. The company has confirmed that comparative sales for the US are running within its modest forecasts of 2 to 4 per cent for June.
Over the week to last Friday, general merchandise comparative sales, including George, were stronger than food sales in the US. Higher average spend per customer, rather than increased footfall, drove sales.
