Walmart rethinks plans for overseas growth

Aug. 16, 2012 at 3:55 PM

BENTONVILLE, Ark., Aug. 16 (UPI) -- U.S. retail chain Walmart said it would put on the brakes on expansion plans for China, Brazil and Mexico.

Speaking to growth in China and Brazil, "We still feel very positive about those two countries ... It's all about us right now," Chief Financial Officer Charles Holley said.

The Financial Times reported Thursday Walmart moved too quickly in China where operating income grew "slightly" in the second quarter, the company said.

In Brazil, the company is trying to keep costs down. Walmart's operating income in Brazil dropped slightly in the past quarter.

In Mexico, Walmart was rocked in 2011 by allegations it paid bribes to government officials to maintain a charged-up expansion schedule.

"Our goal is to achieve profitability and returns that are more balanced and to do that, we must improve operational and sales productivity in some of our emerging markets," Chief Executive Officer Mike Duke said.

In its latest quarterly report, Walmart said sales rose 5 percent over the same period of 2011 with international sales up 7.2 percent to $32.3 billion.

In the previous quarter, international sales, which make up about 28 percent of the company's business, was up 10.9 percent.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Ford recalls 432,000 North American vehicles over software bug
Compact cannon for British armored vehicles
New Zealand military receives medium heavy military trucks
BBC to lay off 1,000 people to make up for $234M in lost revenue
U.S. proposes tighter pipeline spill rules