Wal-Mart International

Wal-Mart International's net sales from continuing operations were $90.6 billion, up 17.5 percent from the previous fiscal year. During the year, several countries consistently had strong performances, including the United Kingdom, Brazil, China and Argentina.

The International segment is guided by three strategic initiatives:

create shareholder value through portfolio optimization
enhance Wal-Mart's global leverage
win in each market

The management teams in each country are focused on achieving specific sales objectives, capital expenditure efficiency and improved operations. Established markets, such as the United Kingdom and Canada, are producing significant operating cash flow, while developing markets, such as Brazil and China, are delivering outstanding levels of growth.

Across the International segment, we are leveraging best practices, lessons from multiple-store formats, and global procurement practices. In addition, relationships with key global suppliers continue to help us leverage our volumes across countries.

Winning in each market is about market leadership. Either we are number one in a market, or we must define a clear path to achieve this goal. The good news is that, to date, we are winning, or see a path to winning, in our existing markets.

In the United Kingdom, ASDA achieved above-market growth every month during fiscal year 2008. Despite a tougher economic environment, Mexico gained customers for the year. Brazil continues to grow market share as well, especially as it expands the soft discount formats. Canada's supercentre expansion helped drive very strong increases in customer count and average ticket. New store openings and strong comparable store sales led Wal-Mart China to improve its market position. And, in Japan, the Company concluded the tender offer for Seiyu in December 2007, increasing its ownership to above 95 percent.