• Brandweek, Wednesday, October 24, 2007 11:30 AM

Wal-Mart says sales growth will slow in the current 2008 fiscal year to 9% from nearly 12% in fiscal 2007. It will then be between 5% and 8% the next two years, according to executive vice president and CFO Tom Schoewe. Wal-Mart's fiscal year ends in January.

The world's largest retailer expects to open 195 supercenters in the U.S. this year, down 30% from the 281 opened during the last fiscal year. Projections for next fiscal year and the following year call for 170 and 140 supercenters, respectively, including expansions and relocations. Because supercenters have a higher rate of return, Schoewe says that Wal-Mart "wants to convert all discount stores to supercenters unless it is not physically possible."

Wal-Mart International will continue to have a faster growth rate than the U.S. operations. Wal-Mart expects to add 48 million to 49 million square feet globally, an increase of 6% in fiscal 2008 over fiscal 2007. During each of the following two fiscal years, Wal-Mart projects to increase square footage between 48 million and 52 million square feet, an increase of 5%-6%.

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