Wal-Mart's US sales will grow at a compound annual rate of 5.6% from 2006 to 2012, lagging the overall US chain retail market's growth rate of 5.9% according to the latest forecasts from MVI, a leading research and consulting firm focused on the retail industry.
CAMBRIDGE, Mass. (BusinessWire EON) June 5, 2007 --
Wal-Mart’s US sales will grow at a compound
annual rate of 5.6% from 2006 to 2012, lagging the overall US chain
retail market’s growth rate of 5.9% according
to the latest forecasts from MVI, a leading research and consulting firm
focused on the retail industry.
MVI’s updated forecasts for Wal-Mart and the
US retail market reflect Wal-Mart’s June 1,
2007 announcement of plans to intensify its focus on capital-efficient
growth in the US by slowing the opening of new Supercenters, Wal-Mart’s
most profitable US format and primary growth vehicle.
“This is a watershed moment in our industry,”
commented Anne Zybowski, Director of Retail Insight for MVI. “In
the nearly 20 years MVI has closely followed the retail industry, this
is the first time we have predicted Wal-Mart will grow at a rate below
the overall US chain retail average.”
MVI’s forecasts are based on Wal-Mart’s
current strategies, portfolio of formats, and capital investment plans.
The US is currently not one of Wal-Mart’s
most diverse markets from a format perspective, and MVI expects Wal-Mart
to leverage its international experience to find a new US growth vehicle
that is both shopper-focused and drives returns on Wal-Mart’s
labor and capital investments.
MVI believes that as Wal-Mart becomes a retailer more closely defined by
its scale than its growth, the impact will be greatest on suppliers that
have historically relied on Wal-Mart for a disproportionate share of
their companies’ growth.
“This continues the trend we have seen of
growth in the retail landscape becoming more fragmented,”
remarked Bryan Gildenberg, Chief Knowledge Officer for MVI. “Consumer
packaged goods (CPG) manufacturers will need to manage, develop and grow
with a wider variety of retail customers and a wider variety of business
models in order to ensure faster-than-market growth.”
MVI will present its full analysis and implications—for
both Wal-Mart and the retail industry—at its
Mid-Year Forum in Boston (June 6, 7, 8) and Dallas (June 12, 13, 14). In
addition, licensed subscribers to MVI-Insights.com, MVI’s
retail research and analysis tool, can access the latest retailer
forecasts and full details in an article entitled, Wal-Mart to Slow
Supercenter Growth in the US. A more detailed analysis is available
to Wal-Mart InFocus subscribers.
The article, Wal-Mart to Slow Supercenter Growth in the US, is
available to qualified members of the press. To request the article or
to arrange an interview with one of MVI’s
retail analysts, please contact: Juliana Bures at jbures@mventures.com
or call 1.617.588.4142.
MVI - Management Ventures, Inc. For nearly 20 years, MVI, a WPP
company, has provided strategic retail insight and analysis focused on
the top global retailers. MVI’s extensive
retailer database tracks and forecasts growth for over 300 chain
retailers is the US and over 900 globally. A respected source for
objective thought leadership, MVI’s retail
analysts guide suppliers, brand manufacturers, financial institutions,
agencies and strategic marketing companies in aligning their businesses
with retailers to drive sustainable growth.
MVI’s global headquarters is in Cambridge, MA
USA and has a major hub in London, UK. Visit www.MVI-Insights.com
for the latest retail news, insights and analysis, or information on MVI.
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