BENTONVILLE, Ark., Oct. 23- Wal-Mart Stores, Inc. today presented its global plans for store and club growth next year at its annual conference for the investment community and updated its projections for capital expenditures through the fiscal year ending on Jan. 31, 2011.
Total capital spending for the fiscal year ending Jan. 31, 2010, is projected to be in a range of $12.5 to $13.1 billion, up from approximately $11.5 billion in fiscal year 2009. Total capital spending for the fiscal year ending Jan. 31, 2011 is projected to be in a range of $13.0 to $15.0 billion.
"Our plan for growth is clearly intended to increase shareholder value," said Tom Schoewe, executive vice president and chief financial officer. "In the U.S., we're building new stores and accelerating the pace of our remodels because they have been so successful at winning and retaining customers.
"We're stepping up growth in our International operations to take advantage of growing economies and opportunities in emerging markets, such as China and Brazil," Schoewe added.
Capital expenditures for all purposes are projected as follows and exclude the impact of any future acquisitions:
Capital Expenditure Detail (US$ billions)
Actual Projected
Segment FY09 FY10 FY11
Walmart U.S. $5.8 $6.6 - 6.8 $7.0 - 8.0
Sam's Club U.S. $0.8 $0.8 - 0.9 $0.7 - 1.0
Walmart International $4.1 $4.2 - 4.4 $4.5 - 5.0
Corporate $0.8 $0.9 - 1.0 $0.8 - 1.0
Total $11.5 $12.5 - 13.1 $13.0 - 15.0
If fiscal year 2009 were placed on a constant currency basis with fiscal year 2010, International capital expenditures in fiscal year 2009 would have been approximately $3.8 billion.
In the fiscal year ending Jan. 31, 2010, the company expects to add approximately 38 million square feet globally, compared to approximately 44 million square feet added in the prior year (excluding square footage added by acquisition). Walmart expects to increase global square footage by approximately 37 million square feet in fiscal year 2011.
Square footage growth (excluding any acquisitions) is projected as follows:
Square Footage Growth by Segment (in millions)
Actual Projected
Additional Square Footage
for: FY09 FY10 FY11
Walmart U.S. 23 14 11
Sam's Club U.S. 2 1 1
Walmart International 19 23 25
Total Company 44 38 37
Walmart U.S. to Focus on Remodels and Accelerating Growth Through New, More Efficient Supercenters
In the U.S., Walmart will continue to focus on further improving the returns of its supercenter format through remodels of existing stores and by accelerating growth of new store designs capable of generating greater returns from current assets.
By November 2009, Walmart U.S. will have completed Project Impact remodels at more than 30 percent of its 3,538 stores. By the end of fiscal year 2012, approximately 70 percent of Walmart U.S. stores, including newly-constructed stores, are expected to be updated under the Project Impact initiative.
"As part of our plan to accelerate growth, we are investing capital in fiscal year 2011 for stores that are planned to open in fiscal year 2012, and we're stepping up the remodels of our existing store base," said Eduardo Castro-Wright, vice chairman, Wal-Mart Stores, Inc. "The remodeling of our existing store base is important because the investments are delivering strong sales performance, excellent customer response and higher returns."
Sam's Club Expanding and Remodeling
Sam's Club plans to add between five and 10 new, expanded or relocated clubs in fiscal year 2011 after adding a projected 15 clubs this fiscal year.
"We remain committed to opening and operating the optimal number of clubs, in the right sizes and formats, in locations that make the best use of our capital," said Brian Cornell, president and CEO, Sam's Club. "Sam's also is increasing its investment in remodeling to improve operating productivity and efficiency, based on a new club layout unveiled earlier today."
Sam's Club plans to remodel between 50 and 55 clubs by year-end, and expects to remodel between 70 and 90 clubs next fiscal year.
Investment outside the U.S. focused on Growth Markets
Walmart International plans aggressive investment, particularly in growth markets such as China and Brazil. The International portfolio includes a variety of formats, from supercenters to small grocery stores. New stores are expected to add approximately 23 million square feet in fiscal year 2010, and approximately 25 million more square feet in fiscal year 2011. These projections are based on the existing store base and do not include possible acquisitions.
"We will continue our organic growth strategy, with strong capital discipline and optimization of our portfolio of formats and brands worldwide," said Doug McMillon, president and CEO of Walmart International. "We will allocate capital, by country and by format, to improve returns from these investments."
Wal-Mart Stores, Inc. (NYSE:WMT) serves customers and members more than 200 million times per week at more than 8,000 retail units under 53 different banners in 15 countries. With fiscal year 2009 sales of $401 billion, Walmart employs more than 2.1 million associates worldwide. A leader in sustainability, corporate philanthropy and employment opportunity, Walmart ranked first among retailers in Fortune magazine's 2009 Most Admired Companies survey. Additional information about Walmart can be found by visiting www.walmartstores.com. Online merchandise sales are available at www.walmart.com and www.samsclub.com
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