Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.ibd From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Companies In The News Date: Fri, 13 Nov 92 13:07:19 EST Message-ID: <10.1992Nov13.130720@AmeriCast.com> 11/13/92 TITLE Companies In The News #m#gm#m##m#Photo David Glass#m#Wal- Mart Pushes Into Mexico While Still Growing In U.S. John A. Jones With more than 2,000 stores offering a big selec- tion of clothing and household needs at deep discount prices, Wal-Mart Stores Inc. continues to grow by adding about 160 stores a year. Now the largest retailer in the U.S., Wal-Mart is pursu- ing new horizons for growth in Mexico. It operates two wholesale club units in Mexico City in a joint venture with CIFRA, Mexico's largest retailer, and has plans for further expansion in Mexico. Investor's Business Daily, Retail/Discount & Variety ranks 10th, based on six-month stock-price performance with added weight given to recent months. In this series, leading companies within the group are reviewed. Wal-Mart, based in Bentonville, Ark., now operates more than 1,800 Wal-Mart discount stores, including a dozen Supercenter stores that double as supermarkets with a full range of groceries. The string, spread across the continen- tal U.S., also includes 250 Sam's Club membership warehouse stores, and four Hypermart-USA stores, which combine a super- sized grocery store with general merchandise, fast food and ser- vice shops. Glass In Charge Since 1988 President David D. Glass was elected chief executive in 1988 after serving as chief operating officer since 1984. Sam Walton, who founded the original business in 1945 in Arkansas, died this year. The first three Sam's Clubs opened in 1983, followed in 1987 by the first two Hypermart-USA stores and the first Super- center. In 1990, the company acquired McLane Co., with 14 distri- bution centers that buy and distribute merchandise to the con- venience and grocery store industry. Last year, Wal-Mart supple- mented its growth in the grocery business by acquiring The Phil- lips Companies, which operates 20 food stores. The company also acquired Western Merchandisers Inc., a wholesale distributor of books and recorded music. Earnings for the fiscal third quarter ended Oct. 31 rose 23% to 38 cents a share from 31 cents a year e5lier. Net income was up 24% to $437.8 million from $353.2 mil- lion. Sales rose 29% to $13.7 million from $10.6 million. David Glass For the nine months to Oct. 31, earnings rose 24% to $1.25 bil- lion, or $1.08 a share, from $1 billion, or 87 cents a share a year, earlier. Nine-month sales rose 27% to $38.4 billion from $30.2 billion. Glass commented that this year's record results reflect "commitment to expense control and customer service." In the third quarter, the company opened 50 new Wal-Mart stores and closed one, and added 10 Sam's Clubs. As of Oct. 31, the company had 1,804 Wal-Mart stores, including 17 Supercenter stores, 243 Sam's Clubs and four Hypermart-USA stores. The Wal-Mart stores offer a wide variety of merchandise, from apparel and shoes for all in the family to household furnishings and soft goods, hardware, electronics, automotive accessories, garden equipment, sporting goods, toys, health and beauty aids, pharmaceuticals and jewelry. Nationally advertised merchandise accounts for most of the non- clothing items and a minor share of the apparel in each store. Last year, the company began marketing some lines under its own Sam's American Choice brand, manufactured in the U.S. Wal-Mart opened its 12th Supercenter combination store last summer in Ok- lahoma. Glass told shareholders the company plans to open about 20 new Supercenters this year and 30 next year to accelerate their growth as a third major store format. Opened Store In Puerto Rico Wal-Mart opened a Wal-Mart store in Puerto Rico last summer, marking its first discount store outside the continental U.S. Glass reported the store was off to a strong start and said he sees opportunities for 10 to 12 more stores and several wholesale clubs in Puerto Rico. Glass said sales and memberships at the two joint-venture Club Aurrera clubs in Mexico City continued to build momentum and gave the company a chance to learn about the Mexican economy in partnership with CIFRA. Last May, Wal-Mart said it plans to join CIFRA in pursuing further opportunities in Mexico, in retail, wholesale, distribution and trade. The com- pany is still expanding in the U.S. It recently opened its first stores in Idaho and Montana and plans to enter Rhode Island and Washington next year. Although Wal-Mart lost its legendary founder, Sam Walton, this year, and the chain is growing into a truly nationwide retailer, analysts said the organization hasn't lost its merchandising know-how. Comparable sales, at stores open a full year, rose 12% in the first half of this year, top- ping the 11% gain in same-store sales in early 1991. Monday: High Plains Corp. This article is copyright 1992 Investors Business Daily. Redis- tribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM