Wednesday, October 05, 2005

Wal-Mart Supercenter projected growth in U.S.

As mentioned before, the white hot core of Wal-Mart’s business is the Wal-Mart Stores operating segment (U.S. Supercenters, Discount Stores, and Neighborhood Markets).

Nothing in retailing, to my knowledge, on the face of the earth comes close to the awesome power of the Supercenters + Discount Stores operation. (Operating margins on the order of 7.8% with $524 million PER DAY flowing through this system.)

From 1997 onward, the average square footage growth rate of the Supercenters + Discount Stores operation has been 8.1%.

In the 2005 Annual Report, Lee Scott says that he believes Wal-Mart can add another 4,000 Supercenters to the 1,713 Wal-Mart had at January 2005. That would mean a total of 5,713 Supercenters in the U.S.

I tried to imagine what that would look like.

I used an average annual growth rate in square footage of the Supercenters + Discount Stores of 8.3%. This got me to 5,483 Supercenters by January 2016.


Anonymous Anonymous said...

This is entirely possible. WM's ultimate goal is to turn every discount store into a SC. a large percentage of new SCs are just relocations and expansions of discount stores (called Division 1 stores internally). Also, you have to consider that they are building some supercenters smaller than even the average discount store. They have a 99,000 square foot urban prototype they have built in a few places. Walmart is undergoing some major internal changes (you might have read about the executive shakeup last week) so all of this stuff is going to be in flux. I'd be willing to bet you'll see a bigger ramp up in neighborhood markets too.

October 06, 2005 10:26 PM  

Lots of supper centers.

March 16, 2013 6:05 PM  

Post a Comment

<< Home