walmart cuts back expansion Essay

293 WordsNov 30, 20082 Pages
Wal-Mart Cuts Back Expansion Wal-mart who is one of the largest and fastest growing retailers is slowing down. After forty five years of business wal-mart purposed a cut back. They will be concentrating more on their pre existing store rather than build more super centers to bring in sales and profit. The second cut back with in six months has analysts saying that “Wal-mart has reached its turning point.” Wal-mart opens on average one super center per day. In 2006 sales in individual stores are falling and to make up for the loss of sales, wal-mart continues to build. Wal-mart executives have finally decided to be more cost effective and use those older stores rather the news ones. The executives figured to increase their sales and profit they would use the resources of the older super centers to its fullest, rather spend money on opening up a new store. Therefore wal-mart will decrease its new super centers by thirty percent this year. The next three years wal-mart plans to only open one hundred and seventy stores per year. Wal-mart Super centers have taken over suburban America. More people shop at wal-mart rather smaller shops and boutiques around. Many small business owners don’t want wal-mart built around them, if not anywhere. Wal-mart being a huge empire it attends to the consumer needs, which takes away the profit from those smaller businesses. Some want wal-mart to fail, but others want it to keep growing. These select few are the wal- mart shareholders. Wal-marts shares have gone from $1.87 to $49.47, nearly a four percent increase. Shareholders are defiantly pleased with wal-marts success and staggering

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