Retailer to invest more in store remodels, e-commerce

BENTONVILLE, Ark. — Walmart’s capital spending plan for next year calls for fewer new brick-and-mortar stores, and an accelerated e-commerce push.

The announcement of the retailer’s spending priorities came during Walmart’s annual meeting with the investment community. The company also said that it expects its earnings to be flat in fiscal 2018, which starts in February, compared to this year.

Walmart’s plans call for capital spending of about $11 billion next year, which is about the same as in the current fiscal year and is down from about $11.5 billion last year.

The company is planning to open 55 stores in the United States next year — down from 130 this year and 230 last year. Those 55 new outlets are expected to include 35 Supercenters and 20 small format Neighborhood Market stores.

The company also plans to open four new Sam’s Club outlets, down from 13 last year. Walmart International projects 190 to 220 store openings, which is about the same as it is opening this year and down slightly from 228 last year.

Walmart says that as it moderates new store openings, it will accelerate the pace of store remodels and invest more in e-commerce and digital initiatives.

“We are encouraged by the progress we’re seeing across our business and we’re moving with speed to position the company to win the future of retail,” Walmart president and chief executive officer Doug McMillon said. “Our customers want us to run great stores, provide a great e-commerce experience and find ways to save them money and time seamlessly — so that’s what we’re doing.”