Wal-Mart Leans on International Stores for Growth

A flurry of stories in the news today about Wal-Mart in the United Kingdom. After announcing 2007’s fourth quarter sales yesterday, Asda came out as one of Wal-Mart’s strongest units. Not surprisingly, a second series of announcements make known Wal-Mart’s intentions to expand in the country. Up until now, Wal-Mart has had trouble expanding in Britain, as the country’s strict zoning laws make Wal-Mart’s sprawling supercenters difficult to build. But as Wal-Mart meets increasing opposition and market saturation in the U.S., foreign markets - even with all their challenges - are starting to look pretty good.

Wal-Mart unveils strong overseas growth, led by Asda [Reuters]

Sales from Asda stores open at least a year, a key gauge in the industry, rose in the “mid-single digits” excluding the positive impact from fuel…

Wal-Mart, the world’s largest retailer, is increasingly turning to its international operations to dazzle investors as its U.S. business struggles with limited growth and flagging sales at its near-4,100 stores.

Asda set to call an end to its recovery plan [Financial Times]

Much of the credit for the continued improvement in Asda’s performance will go to Andy Bond, who was brought in as chief executive in March 2005. Mr Bond is expected to say at a news conference today that much of the recovery has been achieved and Asda will concentrate on growth…

After missing profit targets in his first year, Mr Bond has since turned the business round and Wal-Mart said yesterday that Asda had beaten internal sales and profit forecasts.

Asda to create 9,000 new jobs in the UK with new stores [Times (U.K.)]

Asda, Britain’s second largest supermarket chain owned by America’s Wal-Mart, today announced plans to create 9,000 UK jobs through a mixture of new stores, shop extensions and business expansion.

The company’s plan, its largest jobs programme since it was acquired by Wal-Mart for £6.72 billion in 1999, will include 7,000 positions being created over the next year as it opens between 10 and 12 stores.

New jobs will also be established at 10 new Asda Living stores, its non-food outlets, as well as 12 extensions to existing sites.

Wal-Mart’s Asda to create 9,000 jobs, cut prices [Reuters]

Asda, which begins with the opening of an Andover store in Hampshire in March and later in Kent as well as Dalgety Bay in Scotland, will spend around 400 million pounds ($779.4 million) this year to add over 800,000 square feet of space.

Bond declined to comment whether Asda is interested in buying convenience store chain Somerfield, which is for sale and could fetch as much as 2.5 billion pounds.

Posted by Alex Goldschmidt on Wednesday, February 20, 2008

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