Walmart planned to increase its annual investments 36.4%

Walmart Inc. plans to increase its capital spending by 36.4% for the fiscal year ending January 31, 2022, to $ 14 billion.

These investments will be «with a focus on the supply chain, automation, customer-facing initiatives and technology.»

Headquartered in Bentonville, Arkansas (United States), Walmart is a multinational retail corporation that operates a chain of hypermarkets, discount department stores and grocery stores

For now, Walmart closed the fiscal year 2021 (ended on January 31) with a capital expenditure of 10.264 million dollars, a decrease of 4.1% year-on-year.

For electronic commerce, technology, supply chain and others, it allocated 5,681 million dollars, an annual increase of 0.7%.

Walmart also exercised $ 134 million in New Stores and Clubs, including expansions and relocations, representing a 74 percent increase.

In contrast, its investments in renovations fell 7.8% to $ 2,013 million, and its capital spending at Walmart International fell 13% to $ 2,436 million.

Walmart

From the company’s perspective, its strategy includes enhancing customer-facing initiatives in stores and clubs and creating “a seamless omnichannel experience” for its customers.

As such, the company is allocating more capital to e-commerce, technology, supply chain, and store redevelopments and less to new store and club openings.

The company’s operations comprise three reportable segments: Walmart U.S., Walmart International, and Sam’s Club.

During fiscal 2021, the company generated total revenue of $ 559.2 billion, consisting primarily of net sales of $ 555.2 billion.

Each week, the company serves more than 240 million customers who visit approximately 11,400 stores and numerous e-commerce websites under 54 banners in 26 countries.

History

The businesses conducted by its founders began in 1945 when Sam M. Walton opened a Ben Franklin franchise variety store in Newport, Arkansas.

Then, in 1946, his brother, James L. Walton, opened a similar store in Versailles, Missouri.

Until 1962, the business of its founders was devoted entirely to the operation of variety stores.

In 1983 he opened his first Sam’s Club and in 1988 he opened his first supercenter.

Subsequently, in 1991, the company began its first international initiative when it entered into a joint venture in Mexico and, as of January 31, 2021, its Walmart International segment did business in 25 countries.

In 2000, Walmart started its first e-commerce initiative by creating both walmart.com and samsclub.com.