BENTONVILLE, AR-Already the largest retailer in the world, Wal-Mart is dramatically cutting its capital expenditure budget for 2008, opening 600 new locations worldwide in an effort to match expansion with sales increases.

The company predicted that its fiscal 2008 capital spending will increase by about 2% to 4%, compared with a 15% to 20% increase for fiscal 2007. The expansion will add about 60 million square feet to Wal-Mart’s worldwide portfolio, about a 7.5% increase.

“We are still very committed to growth, but our real estate projects are now being subjected to a more rigorous prioritization process,” said Wal-Mart Vice Chairman John Menzer in a statement. “This store selection process will enable the company to drive higher returns by focusing on locations that make the most efficient use of capital.”

By segment, the company plans to open between 265 and 270 Supercenters, five to 10 discount stores, 15 to 20 Neighborhood Markets and 20 to 30 Sam’s Clubs in the United States, and between 305 and 330 units internationally.

International square footage is expected to rise approximately 10%, and US square footage will grow by about 7.5%, said Tom Schoewe, Wal-Mart Stores executive vice president and CFO, in the same statement.<P."Supercenters will continue to be our primary driver for expansion in the United States," Schoewe said. "Internationally, our unit growth will cover a wide variety of formats, from large units like Wal-Mart Supercenters and Sam's Clubs, to smaller retail locations like Despensa Familiar in Wal-Mart Central America, Bodega Aurrera in Mexico, and Bompreco in Brazil."

Wal-Mart operates in the United States, Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Germany, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.