US retailer Wal-Mart doubled its international sales and profits in the second quarter to $7.4bn and $232m respectively.
LONDON (Brand Republic) – US retailer Wal-Mart doubled its international sales and profits in the second quarter to $7.4bn and $232m respectively.
But the company, which bought the Asda chain last year, said it had yet to break even in its German operations. It is spending heavily on rebranding stores and implementing a new distribution system.
Although overall sales were up 20% to $46.1bn, with profits up 28% to $1.6bn, president and CEO Lee Scott said less people were passing through the stores but reassured analysts that fewer numbers were spending more.
He said consumer spending would stay high for the rest of the year: “We believe consumers have taken a short pause and that traffic would increase as the back-to-school season begins.”
In the UK, Wal-Mart started to make its mark with its first dual-branded Wal-Mart/Asda supercentre, which opened in Bristol last month.
Asda has always maintained Wal-Mart will keep the Asda brand, but the US logo has started to appear on store signs across the country to “tell consumers we’re part of the Wal-Mart family”.