Walmart international expansion to outpace U.S. in ‘10

Walmart made the case Wednesday at its annual meeting for financial analysts that the company has ample growth opportunities ahead of it in the United States, especially as it places more emphasis on smaller stores, but international is where the action is in terms of total square footage.

Walmart’s international square footage growth will outpace that of the United States next year, as the company spends between $4.5 and $5 billion to add 25 million square feet of new selling space in international markets. In the United States, the company expects to add 11 million square feet of selling space at a cost of between $6.1 billion and $7.1 billion. Even though the amount spent internationally is less than the domestic total, Walmart is able to add more stores and more selling space in overseas markets due to local market conditions and the cost of opening new stores. That was the case this year as the company expects to spend $7 billion by year end to add 14 million square feet compared to the $4.3 billion it will spend internationally to add 23 million square feet.

In year’s past, Walmart would typically disclose the number of new stores it planned to open in addition to the total square footage. That wasn’t the case this year however as the company did not disclose expansion plans by store format domestically or internationally.