Asia, along with Latin America, will be a key driver of sales and earnings growth in years to come, Walmart executives said at an investors conference here this week.


Asia, Latin America, Walmart, investors conference, Doug McMillon, Walmart International, Scott Price, Walmart Asia






























































































































































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Walmart looks to Asia for continued growth

April 1st, 2011

SHENZHEN, China – Asia, along with Latin America, will be a key driver of sales and earnings growth in years to come, Walmart executives said at an investors conference here this week.

"In a nutshell, what we’ve got to do is continue to drive some growth in the really profitable markets like Mexico and Canada where we have terrific returns, continue to drive growth in a country like the United Kingdom, and then simultaneously lift these other international markets, countries like Brazil, places like China, to a higher level of profitability without slowing down the growth so the portfolio has a better return," said Doug McMillon, president and chief executive officer of Walmart International.

Scott Price, president and CEO of Walmart Asia, noted that Asia will contribute 35% of the sales growth in Walmart’s international business by 2016, compared with the 15% it generated in 2010. That expansion, he added, will come from a number of strategic levers: comparable-store sales growth, new stores, new market entry and e-commerce.

Both organic growth and possible mergers and acquisitions may drive new store additions and new market entries. Organic store expansion between 2010 and 2015 is projected to be about 20%.

One key growth driver in the region is the ongoing expansion of the middle class, which is expected to account for nearly 65% of Asia’s total population by 2015, up from just 26% in 2005. That socioeconomic trend will help drive an estimated 50% increase in the region’s retail market between 2010 and 2015, trailing only Latin America at 53%.

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