Wal-Mart Stores Inc, the largest U.S. retailer, said on Tuesday it will cut capital spending for the current fiscal year even more steeply than it previously announced.
The company said it’s now planning for capital expenditures to be between $14.7 billion and $15.4 billion, down from the $15.5 billion spending forecast it gave in June.
Wal-Mart, which is trying to boost sales at its existing stores, will also open fewer supercenters. Analysts and investors have pushed the company to pare down its aggressive expansion as sales at existing stores have slowed amid many saturated markets.
After Wal-Mart’s announcement, the Dow Jones industrials and S&P 500 index pared early gains to edge lower Tuesday morning. The Dow fell 14 points to 13,550, while the S&P 500 slipped 2 points to 1,504.
(Photo Source: Reuters)
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