Wal-Mart to limit supercenter growth

BENTONVILLE, Ark. At its annual shareholders meeting today Wal-Mart Stores announced a major shift in its growth strategy--limiting the number of U.S. supercenters to be open in fiscal 2008.

A departure from the company's usual efforts, Wal-Mart's new growth plans call for between 190 and 200 supercenters to be open in fiscal 2008 and for approximately 170 supercenters to be open each year for the next three fiscal years. This is a major reduction from the company's original plans to open between 265 and 270 supercenters in 2008, as announced in October 2006.

"While we feel comfortable with these estimates, we will continue to review and evaluate our expansion strategy on an annual basis," said John Menzer, Wal-Mart Stores vice chairman and chief administrative officer.

According to the company, the decision to limit supercenter growth was made in order to reduce capital expenditures and increase U.S. comparable-store sales.

In addition, the board of directors approved a new share repurchase program that increases the company's authorization to $15 billion.