Monday, October 23, 2006

Wal-Mart Thinks They Are Too Big

Yup they are going to sacrifice capital expenditures to focus on profit growth. So you might see less Wal-Mart stores opening in favor of growing same store sales.

"Our long-term goal is to have our capital expenditures grow at a rate equal
or less than sales growth," said Wal-Mart Chief Financial Officer Tom Schoewe.
"Over time, we expect our new capital efficiency model to reduce the impact of
cannibalization."


I guess they are finally tired of competing with themselves in certain markets. Maybe they will start of focus on bringing up their profit margins or return some of that cashola to their shareholders. I have a feeling that this could be the thing to propel this stock out of that almost 5 year or so trading range the stock has been in.

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