INTERNATIONAL DIVISION DRIVES SALES AT WAL-MART

VICKI M. YOUNG

SAN FRANCISCO -- The international segment is Wal-Mart Stores' newest and largest business, making up 19% of sales, said Joseph Fitzsimmons, senior vice president of finance and treasurer at Wal-Mart, Bentonville, Ark., during a presentation at a Banc of America Securities investor conference here last week.

Fitzsimmons also said carving out Wal-Mart's international sales as a separate business would make it No. 25 on the Fortune 500 in terms of sales.

"So the issue isn't that we don't have a substantial international exposure; the issue is that Wal-Mart is just a big company," he said.

Fitzsimmons also disclosed that international is Wal-Mart's second most profitable business, generating 14% of operating profits.

The retailer operates in 10 countries, including a minority ownership in Japanese retailer Seiyu. Portfolio diversity includes a high-end grocery store in Mexico called Superama, and Asda, a retailer in the United Kingdom. It also operates a Neighborhood Market supermarket located underground in Shenzhen, China. Other grocery operations are located in Puerto Rico and Sao Paulo, Brazil. In Mexico City, the discounter operates a softlines department store.