BENTONVILLE, /PRNewswire-FirstCall/ — Wal-Mart Stores, Inc. (NYSE:WMT) 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.
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.