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Wal-Mart expects Massmart breakthrough

Chicago - The head of Wal-Mart expects the takeover of Massmart Holdings [JSE:MSM] to move ahead in next few weeks.

There is a "tremendous long-term opportunity" in sub-Saharan Africa, president and chief executive Mike Duke said on Tuesday.

Wal-Mart's plan to buy 51% of Massmart has been hung up by delays.

The government approval process should be completed over the next few weeks, allowing Wal-Mart to move ahead with the deal, Duke said at a Barclays conference in New York that was also broadcast over the internet.

Wal-Mart Stores is making progress bringing items and shoppers back to its US stores, and turning around US sales remains its top priority, he said.

The Walmart US discount chain's food department has improved and its general merchandise areas are well on the way to having the right assortment.

Wal-Mart is bringing back thousands of items, advertising its low price guarantee and taking other steps to try to win back shoppers who balked at an earlier plan that cut goods from stores and emphasized promotional prices.

Duke again said that achieving an increase in US same-store sales - a key gauge of retail health that measures sales at stores open at least a year - is his "first priority."

Walmart US, the largest part of the world's biggest retailer, has reported seven consecutive quarterly declines. Duke declined to say when those same-store sales should turn around, but he did say that he is seeing "traction."

Wal-Mart's biggest growth opportunity remains the US, where it is opening more supercenters and other types of stores, followed by the potential to expand in China, he said.
 
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