By Bloomberg News
Wal-Mart Stores Inc., the world’s largest retailer, plans to increase its workforce by 36 percent in the next five years as global economic growth boosts spending.
New employees will be hired “mostly” outside the U.S., Susan Chambers, executive vice president for human resources, said in a speech at a conference in New Delhi today. “The opportunity for growth is not just in India but global,” she said, without providing more details on the hiring plans.
Wal-Mart plans to have 3 million workers in five years, more than the estimated 2009 population of its home state Arkansas, from 2.2 million now, Chambers said. Overseas sales for the world’s largest listed company by revenue have grown 91 percent in the last five years to $100.1 billion, almost triple the pace in the U.S., according to data compiled by Bloomberg.
The Bentonville, Arkansas-based retailer is boosting overseas expansion to offset slowing growth in the U.S., where same-store sales, which strip out the effects of new outlets, have fallen for five consecutive quarters. Wal-Mart plans to enter Africa by acquiring Massmart Holdings Ltd. in a transaction worth about $4.6 billion.
Wal-Mart fell 0.9 percent to $53.35 in New York trading yesterday.
Indian Rules
In India, Wal-Mart and rivals including Carrefour SA are urging the government to allow overseas investment in multibrand retailers after the trade ministry invited views from the industry on the issue. India may decide in two to three months whether to relax the restrictions, junior trade minister Jyotiraditya Scindia said Sept. 17.
Indian laws limit overseas investment to single-brand retail or wholesale outlets. The government of the world’s second-most populous country is reviewing feedback it sought in July from interested parties such as local and foreign retailers, and industry groups, according to Scindia.
Wal-Mart has partnered with closely held Bharti Enterprises Pvt. in India to open wholesale stores and build a supply chain network.
The venture, Bharti-Walmart Pvt., plans to open 15 stores in India by the end of 2011, Chief Executive Officer Raj Jain said in New Delhi Sept. 28. It has three stores now.
Wal-Mart may open hundreds of stores in India should the government lift the ban on foreign direct investment
