Wal-Mart is to limit expansion in its home market and invest in its international operation as it seeks to focus on capital efficiency and improved return on investment.

The retail giant expects to open 166 supercenters in the US in the 2009 financial year, including expansions and relocations. This compares with 191 openings this year.

“Supercenters continue to have the highest rate of return of our US formats,” said Wal-Mart executive vice-president and chief financial officer Tom Schoewe. “We will continue to invest in our core business through remodels.”

New stores in the retailer’s international division will provide 17 million to 18 million additional sq ft next year, and a further 19 million to 20 million sq ft in 2010. It will focus on mature markets such as Japan and Canada, and emerging markets such as Mexico, China and Brazil.

Speaking at the 15th annual analysts’ and investors’ event last week, chief executive Lee Scott said there are “extraordinary opportunities” created by the downturn. He said there are “things that the government might allow you to do that they would not have in the past”, and that Wal-Mart would take a “thoughtfully aggressive” approach.

Scott added that Wal-Mart would explore expanding beyond pure retail, highlighting a long-term agreement with leading US online contact lens supplier, 1-800 Contacts.

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