Wal-Mart to scale back store openings
Wal Mart will scale back the number of planned U.S. superstore openings this year by more than 25 percent.
Wal-Mart said it will open between 190 and 200 new supercenters in the U.S. during its current 2008 fiscal year, with an average of 170 supercenters each year for the coming three years. Last year, the retailer said it planned to open between 265 and 270 supercenters in 2008. Approximately 80 of the supercenters originally scheduled to open next year will now open in 2009.
“While we feel comfortable with these estimates, we will continue to review and evaluate our expansion strategy on an annual basis,” Wal-Mart Vice Chairman and Chief Administrative Officer John Menzer said at the company’s annual shareholders’ meeting. Menzer said the company is making adjustments in its property division. “The priority for a potential store is selecting a location that makes the most efficient use of capital resources and aligns with market growth priorities,” Menzer said. “We also have been focused this year on reducing cannibalization of existing stores via our more strategic selection of U.S. real estate projects.”
