ROGERS, Ark. — Walmart is actively seeking acquisitions abroad, including in Russia, as its low-price formula helps it pick up market share and customers in the global recession.
We’re well positioned for growth,” Wan Ling Martello, senior vice president and chief financial officer of Walmart, told reporters at a media conference Thursday, the day before the company’s annual shareholder meeting.
Sales in Walmart’s international business, which now accounts for almost 25 percent of its revenue, rose 9.1 percent to $98.6 billion in its latest fiscal year, which ended Jan. 31. The company operates 10 different formats like hypermarkets and supermarkets under more than 60 store banners. About 80 percent of Walmart’s international business is from acquisitions, Martello said.
The company’s latest big acquisition overseas was D&S, the Chile-based food retailer, which was announced in February. Walmart has said its emerging markets have bigger growth potential.
Martello noted that as the recession has expanded globally, consumers worried about unemployment and higher debt have consolidated their shopping trips and gravitated toward in-store brands. They also are seeking bargains online.
Keeping prices low
Vicente Trius, who formerly led Walmart’s Asia market and became president and CEO of the company’s Latin America division last week, noted that in Japan, shoppers are very sensitive to price.
So Walmart’s Seiyu operation has responded by keeping its prices between 5 and 10 percent lower than its local competition.
Walmart has started an aggressive remodeling program that is to roll out in 500 existing supercenters this year.
The company is combining elements that it has tested in stores across the United States.
At Sam’s Club, executives are offering more fresh produce, pizza and macaroni and cheese in response to consumers’ new preference for eating at home to cut costs.
by the associated press
We’re well positioned for growth,” Wan Ling Martello, senior vice president and chief financial officer of Walmart, told reporters at a media conference Thursday, the day before the company’s annual shareholder meeting.
Sales in Walmart’s international business, which now accounts for almost 25 percent of its revenue, rose 9.1 percent to $98.6 billion in its latest fiscal year, which ended Jan. 31. The company operates 10 different formats like hypermarkets and supermarkets under more than 60 store banners. About 80 percent of Walmart’s international business is from acquisitions, Martello said.
The company’s latest big acquisition overseas was D&S, the Chile-based food retailer, which was announced in February. Walmart has said its emerging markets have bigger growth potential.
Martello noted that as the recession has expanded globally, consumers worried about unemployment and higher debt have consolidated their shopping trips and gravitated toward in-store brands. They also are seeking bargains online.
Keeping prices low
Vicente Trius, who formerly led Walmart’s Asia market and became president and CEO of the company’s Latin America division last week, noted that in Japan, shoppers are very sensitive to price.
So Walmart’s Seiyu operation has responded by keeping its prices between 5 and 10 percent lower than its local competition.
Walmart has started an aggressive remodeling program that is to roll out in 500 existing supercenters this year.
The company is combining elements that it has tested in stores across the United States.
At Sam’s Club, executives are offering more fresh produce, pizza and macaroni and cheese in response to consumers’ new preference for eating at home to cut costs.
by the associated press
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