Wal-Mart to slow down expansion

Wal-Mart to slow down expansion

World’s largest retailing chain Wal-Mart has said in a statement that they are now planning to slow down their expansion plans around the world as they aim to boost return on investment.

The news helped the company gain in the stock exchange as its share price went up by around 3%.

The company further said that remodeling efforts at hundreds of its U.S. stores had disrupted business more than it expected and the sales in the current month are running below plans.

Wal-Mart further said that they expect its retail space to grow 7.5 percent in the next fiscal year that begins February 1.

Chief Financial Officer Tom Schoewe said in a statement: “We’re still dedicated to growing the business. We’re looking at our projects differently. We’re prioritizing differently. We can still grow very rapidly but … there’s a lot more concern about capital efficiency.”