Wal-Mart Turns From Russia to NYC

Wal-Mart is closing its Russia office, but may be in talks to open stores in New York City.
By Jeanine Poggi ,

NEW YORK (

TheStreet

) --

Wal-Mart

(WMT) - Get Report

is closing down its Russia office, but is once again making a push to enter New York City.

The

New York Times

reported on Monday that the discount giant is actively talking with construction unions in New York City to open stores in the market.

Wal-Mart is also scheduled for a City Council hearing in January.

"We continue to believe that the highest return emerging markets for Wal-Mart are the inner cities of the U.S." Janney Capital Markets analyst David Strasser wrote in a note.

The company successfully closed a deal in Chicago earlier this year, and Strasser expects other metro cities to reconsider and support Wal-Mart.

"If we assume that Wal-Mart has the potential to open about 500 stores across the country with square-foot-per-store of about 40,000, then over time, we are looking at 20 million additional square feet," Strasser estimates.

The renewed interest in New York City comes as Wal-Mart announces that it is shuttering its Moscow office. The world's largest retailer has been exploring options to enter the Russian market through an acquisition, but thus far has not found an opportunity, and no longer needs an office.

This does not mean it is totally turning its attention away from Russia, as Doug McMillon, CEO of Wal-Mart International, says the company "will continue to pursue market entry opportunities."

While this decision may seem trivial, it allows Wal-Mart to focus on its recent investment in South African retailer, Massmart, and other emerging countries like India, China and Brazil, Strasser notes.

-- Written by Jeanine Poggi in New York.

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