Wal-Mart Plans to Expand by Up to 275 Stores

The world’s biggest retailer, Wal-Mart Stores Inc., said it will open as many as 275 new stores next year and expand or relocate as many as 110 others.

During a Monday meeting with analysts at its Arkansas headquarters, Wal-Mart executives said plans for new markets include 40 Wal-Mart discount stores, 20 to 25 Sam’s Club warehouse stores and 70 to 80 super-center stores, which include discount merchandise and groceries.

The company said it will add 110 stores to its international holdings; the company also will build 15 to 20 smaller grocery stores, called Neighborhood Markets, double the number opened this year.

The company also will expand or relocate 100 to 110 U.S. stores.

A Wal-Mart spokesman said the company has not yet determined where the new stores will be located.

Wal-Mart, which has seen its sky-high sales cool slightly in recent months, is selling food to draw consumers into its stores more often, a move that analysts said will help the retailer boost sales even if the U.S. economy falters. Although shoppers have been cutting back their spending, Wal-Mart’s performance continues to be among the strongest in the retail sector as the stores’ low prices continue to lure customers.

“There’s plenty of room for them to grow,” said analyst Daniel Popowics of Fifth Third Bank, which held 2.1 million Wal-Mart shares as of June. “They certainly have the financial resources to maintain a fairly aggressive expansion plan.”

Next year’s expansion will increase Wal-Mart’s retail space by about 8%, or 40 million square feet, making it the largest increase in the company’s history, Chief Executive Lee Scott said in a statement. The company operates more than 3,000 U.S. stores and more than 1,000 stores internationally.

Wal-Mart shares fell $1.88 to close at $46.25 on the New York Stock Exchange.

Bloomberg News was used in compiling this report.