Wal-Mart revamps store formats
Investment follows falling sales
October 1 2002
Wal-Mart has announced plans for a major facelift of its US store formats over the next year.
The announcement comes after the world’s biggest retailer revised its like-for-like sales forecast for September down to 3-4 per cent from a 4-6 per cent forecast at the beginning of the month.
The company plans to open up to 55 discount stores in its new financial year starting in February 2003. In addition, it will relocate or expand 140 Supercenters, and open up to 70 more in new locations.
Up to 25 new stores will open in the Neighborhood Market format, and around 30 new Sam’s Club outlets will be opened, and another 15 expanded or relocated.
Wal-Mart International, which includes the UK Asda business, will open up to 130 new stores, including two restaurant formats.
Around 90 per cent of the new and revamped stores will be trading before Christmas next year.
Commenting on current sales, Wal-Mart said its like-for-like forecast for September has been based on “optimistic” assumptions about the amount of business lost in the wake of the September 11 attacks last year.
The company has previously proven adept at revitalising existing formats and developing new ones to counter the effects of a downturn in consumer spending.
