The results again underlined the retailer’s ability to generate cash in a recession, and to use the money to invest in its business at a time when most of its rivals are cutting back. Reduced capital spending on new stores in the US last year, operational improvements and inventory management left the retailer with free cash flow of $11.6bn at the end of January, more than double the $5.7bn of a year ago.
Wal-Mart has also been able to make acquisitions, concluding a $2.6bn deal in January for a controlling share of D&S, the largest retailer in Chile. It is also continuing to invest in its stores, with a major remodelling programme, called “Project Impact”, now under way at its US stores, which it expects to significantly boost the sales per square foot of its more than 3,000 supercenters and discount stores.
