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Walmart International focusing on own business over deals


Wal-Mart Stores is emphasising improving results in international markets where it already operates, such as China, over entering new markets, its top international executive said on Thursday.

“Our focus this year in particular has been on improving returns with our existing businesses,” said Doug McMillon, chief executive officer of Walmart International.

The company is working on the key markets of China and Brazil, he told investors and analysts at a meeting in Toronto that was also webcast.

China is getting ready to move to an everyday-low-price model, he said. Brazil has already switched over to that Walmart way of offering low prices at all times rather than relying on certain sale items.

In China, some new stores have not been as strong as Walmart would like, he said. Walmart China also dealt with a pork mislabelling issue last year that led to the temporary closure of some stores, and big leadership changes.

“A lot of issues have been identified in China over the last few months,” said McMillon. “It’s just nowhere near what it could be.”

Walmart International is looking at possible deals, both to enter new countries and acquire certain capabilities, but for now the focus is largely on the existing business, he said.

“We will continue to look for opportunities,” said McMillon. “If there’s a large market out there with a high growth rate and we feel like for some reason this is a time that we need to go or want to go, we’ll still do some of those things. But what I want to demonstrate to you is that we understand the obligation and opportunity that we have to improve returns, and we will do that.”

Walmart International grew at a faster clip than the larger Walmart U.S. in the fourth quarter. Operating income at Walmart International rose 15.2 percent to nearly $2.31 billion, while Walmart U.S. operating income rose 1.4 percent to $6.11 billion.

International results were mixed. Britain’s ASDA saw sales growth slow from the third quarter.

Jessica Wohl
Reuters

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Discussion

3 thoughts on “Walmart International focusing on own business over deals

  1. Reblogged this on Craig Hill.

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    Posted by Craig Hill | April 13, 2012, 7:23 am
  2. WalMart owns three supermarket chains in Costa Rica. They have been pumping money into them, and now they are getting returns from their investments. The other overseas chains, needless to say, have not been doing as well. The local markets are limited to small areas the big ones do not want to bother with.

    Like

    Posted by halsmith | April 13, 2012, 8:05 am

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