Wal-Mart, one of the largest retailers in the world, has warned that sales growth will slow down over the three years and has decided to cut out its plans on capital expenditure with less cash earmarked for opening new stores in the U.S.
It expects to open 195 supercentres this year in the United States of America, down 30 per cent from 281 that opened last year, reports said.
The Company’s Chief Financial Officer, Tom Schoewe, said the Bentonville based Retail giant would focus instead on opening more stores overseas and spend about US$14 to US$15 billion worldwide in each of the next two years.
“We continue to focus on increasing operating cash flow, in addition to moderating capital expenditures,” Schoewe said.
He said the strategy will increase free cash flow, allowing Wal-Mart to fund strategic acquisitions and provide returns for its shareholders through dividends and share repurchase.
In August, the retail giant had warned that its full-year profits would not meet its initial target due to consumers worldwide tightening their belts.
