Wal-Mart to slow U.S. expansion

[deadparrot]

CHICAGO (Reuters) - Wal-Mart Stores Inc. (NYSE:WMT - news) said on Monday it plans to slow U.S. store expansion and spending growth next year in a bid to boost return on investment, sending its stock up more than 2 percent.

But the world's biggest retailer said October sales were running below plan, in part because it underestimated how badly remodeling efforts at hundreds of its U.S. stores had disrupted business. That tempered enthusiasm for the stock, which had been up more than 5 percent earlier in the session.

Wal-Mart said it expects its retail space to grow by 7.5 percent in the next fiscal year -- which begins February 1 -- a modest slowdown from the 8 percent increases seen in recent years.

Capital spending is expected to be up 2 percent to 4 percent, well below the 15 percent to 20 percent increase expected in the current fiscal year.

http://news.yahoo.com/s/nm/20061023/bs_nm/retail_walmart_expansion_dc

[Hawkeye-X]

1. How about stopping at nil and going downhill

And start begging people to come back with a huge living wages with full 100% company-paid benefits?

[The_Casual_Observer]

2. SLow expansion or just running out of towns that don't have at least

one of the horrible places. Many towns have a normal one and also a "super" one across the town. This is a good sign, when they can't "grow" anymore they will start to implode like a spent star.

[cornermouse]

6. I think they've pretty well saturated everything around here.

The biggest advantage they have is the open 24 hours policy. If you forgot to get something for the office party, they're open when other places are not.

[pokercat999]

7. My thoughts exactly, the beginning of the end. nt

[DaveJ]

3. That makes sense

While * was in control and government had its back turned, Wal-mart infested communities like a plague. Now they anticipate Democrats will regain control, which will cause consumers to have more money in their pocket, when they will "capitalize on their investment."

[Ferret Annica]

4. Wal Mart is my enemy, period.

I will never shop there, and I hope I live long enough to see it go tits up.

[TomInTib]

5. Same here. Never. nt

[crikkett]

8. I think it's called 'market saturation'