MVI Forecasts Wal-Mart’s US Sales Growth to Lag the Overall US Chain Retail Average 2006 - 2012

CAMBRIDGE, Mass.--(EON:Enhanced Online News)--Wal-Mart’s US sales will grow at a compound annual rate of 5.6% from 2006 to 2012, lagging the overall US chain retail market’s growth rate of 5.9% according to the latest forecasts from MVI, a leading research and consulting firm focused on the retail industry.

“This continues the trend we have seen of growth in the retail landscape becoming more fragmented”

MVI’s updated forecasts for Wal-Mart and the US retail market reflect Wal-Mart’s June 1, 2007 announcement of plans to intensify its focus on capital-efficient growth in the US by slowing the opening of new Supercenters, Wal-Mart’s most profitable US format and primary growth vehicle.

“This is a watershed moment in our industry,” commented Anne Zybowski, Director of Retail Insight for MVI. “In the nearly 20 years MVI has closely followed the retail industry, this is the first time we have predicted Wal-Mart will grow at a rate below the overall US chain retail average.”

MVI’s forecasts are based on Wal-Mart’s current strategies, portfolio of formats, and capital investment plans. The US is currently not one of Wal-Mart’s most diverse markets from a format perspective, and MVI expects Wal-Mart to leverage its international experience to find a new US growth vehicle that is both shopper-focused and drives returns on Wal-Mart’s labor and capital investments.

MVI believes that as Wal-Mart becomes a retailer more closely defined by its scale than its growth, the impact will be greatest on suppliers that have historically relied on Wal-Mart for a disproportionate share of their companies’ growth.

“This continues the trend we have seen of growth in the retail landscape becoming more fragmented,” remarked Bryan Gildenberg, Chief Knowledge Officer for MVI. “Consumer packaged goods (CPG) manufacturers will need to manage, develop and grow with a wider variety of retail customers and a wider variety of business models in order to ensure faster-than-market growth.”

MVI will present its full analysis and implications—for both Wal-Mart and the retail industry—at its Mid-Year Forum in Boston (June 6, 7, 8) and Dallas (June 12, 13, 14). In addition, licensed subscribers to MVI-Insights.com, MVI’s retail research and analysis tool, can access the latest retailer forecasts and full details in an article entitled, Wal-Mart to Slow Supercenter Growth in the US. A more detailed analysis is available to Wal-Mart InFocus subscribers.

The article, Wal-Mart to Slow Supercenter Growth in the US, is available to qualified members of the press. To request the article or to arrange an interview with one of MVI’s retail analysts, please contact: Juliana Bures at jbures@mventures.com or call 1.617.588.4142.

MVI - Management Ventures, Inc. For nearly 20 years, MVI, a WPP company, has provided strategic retail insight and analysis focused on the top global retailers. MVI’s extensive retailer database tracks and forecasts growth for over 300 chain retailers is the US and over 900 globally. A respected source for objective thought leadership, MVI’s retail analysts guide suppliers, brand manufacturers, financial institutions, agencies and strategic marketing companies in aligning their businesses with retailers to drive sustainable growth.

MVI’s global headquarters is in Cambridge, MA USA and has a major hub in London, UK. Visit www.MVI-Insights.com for the latest retail news, insights and analysis, or information on MVI.

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