International News - Wal-Mart to fund growth using $11bn war chest

Wal-Mart has put together a US$11 billion (£6.64 billion) kitty for expansion this financial year, chief executive Lee Scott told shareholders and employees.

The retailer is the biggest company in the world, with sales last year of US$245 billion (£148 billion). Its investment in expansion will overshadow the turnover of many retailers.

The cash will be poured primarily into the US, where 200 Supercenters are planned, alongside another 80 to 100 stores such as Neighbourhood Markets and Sam's Club outlets. More than 100 shops will be opened internationally.

Speaking at the annual shareholders' meeting to an audience of almost 20,000 last Friday, Scott said that if Wal-Mart International were a separate business, its US$40 billion (£24.17 billion) in sales would rank it 33rd in the Fortune 500 list of the world's biggest companies.

The meeting was told that over the next five years, the number of Wal-Mart employees will increase from 1.4 million to more than 2 million.

The day before Scott's speech, Wal-Mart announced an increase in sales for the four weeks to May 30 to US$18.95 billion (£11.45 billion).

However, Scott warned managers away from allowing staff to work overtime without pay against a background of increasing pressure from unions in the US.

'We can't grow this company unless we are a great place to work,' he said. 'We've got to make sure every hourly employee is paid for every hour worked.' He insisted that any manager who did not understand this 'no longer has a career at Wal-Mart'.