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Wal-Mart Slashing CapEx

BENTONVILLE, AR-The largest retailer in the world is cutting its store-opening plans to 600 units next year.

By Debra Hazel | Updated on October 24, 2006

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.”

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