Fiscal year 2015 capital investments are projected to be $200 million lower than this updated current year estimate. The forecast includes new stores, remodels, logistics and technology infrastructure, and is designed to add new units that will expand its retail space by approximately 19 to 21 million net retail square feet next year. Walmart U.S. will build approximately 120 to 150 small format stores next fiscal year.
“We will accelerate growth of our Neighborhood Markets because of their strong returns, consistent comp sales performance and double-digit net sales increases,” said Bill Simon, Walmart U.S. president and CEO. “We will continue to build and leverage the supercenter format, which remains our primary format for growth. We plan to open approximately 115 supercenters next year, including relocations and expansions. The combination of our large and small store formats allow us to strengthen our market share position and give customers convenient access to shop for food and general merchandise, as well as access to our e-commerce offerings.
“We believe our multi-format portfolio will fuel the next generation of retail, enable the convergence of digital and physical store locations through e-commerce and unlock value, giving our customers anytime, anywhere access to Walmart,” added Simon. “We are positioned for sustainable growth and are the only company with a unique combination of large supercenters, small formats and a dotcom and mobile presence.”
Sam’s Club DetailsSam’s Club maintains its capital spend for the current fiscal year at approximately $1 billion. The segment will add approximately 19 to 21 clubs, including relocations and expansions in fiscal year 2014, up from 14 last year. Sam’s is also remodeling more than 70 clubs this year. “The new clubs we’ve opened this year are outperforming our expectations and we will continue to increase our openings. Our fleet is in the best position and condition it has been in years,” said Sam’s Club president and CEO Rosalind Brewer. “We improved our construction cost structure, and with the productivity initiatives in place and consistent layouts, we are opening clubs that cost less to run and improve the shopping experience for our members.”