Wal-Mart Expects Slower Sales Gains

Wal-Mart has released a sales forecast for its fiscal year ending January 31 stating that the retailer expects to see a 1 to 2 percent gain in annual sales, a figure that marks a sharp slowdown from Wal-Mart’s previous forecasts. However, Wal-Mart expects its sales to rebound in the following year, seeing sales rise 4 to 6 percent.

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In addition to expecting larger sales, Wal-Mart also anticipates to spend an additional $1 billion this year over last as it continues to upgrade its stores and to expand its business into new markets. Wal-Mart has stated that it does not expect any problems from its own internal business practices, but it remains cautious about the state of the economy and its impact on consumers.

Wal-Mart is stepping up the pace of its store renovations in the United States and is ramping up its expansion into growing markets like China and Brazil. The retailer has also announced that it will begin offering installation and support services for consumer electronics, an offering that may be ready by the lucrative holiday season.