Wal-Mart unveils strong overseas growth, led by Asda

LONDON (Reuters) - Wal-Mart Stores Inc (WMT.N), unveiling strong growth in its operations in 15 countries outside the United States, said on Tuesday its British grocer Asda had exceeded sales and profit plans for 2007.

Sales from Asda stores open at least a year, a key gauge in the industry, rose in the "mid-single digits" excluding the positive impact from fuel.

A weak retailing environment failed to put the brakes on Britain's second-largest grocery group, after Tesco (TSCO.L) and ahead of J. Sainsbury (SBRY.L), as penny-pinching shoppers were won over by its low prices, Wal-Mart said in a statement.

"Asda was a winner in the UK, being the fastest growing of the big four retailers. In fact, Asda achieved above-market growth every single month of the year," Mike Duke, Wal-Mart vice chairman in charge of international operations, said in a recorded call on the group's full-year 2007 results.

For the Christmas period, the latest data available, comparable like-for-like sales excluding fuel rose 3.1 percent at Tesco, 3.7 percent at Sainsbury and 9.5 percent at WM Morrison Supermarkets (MRW.L), Britain's fourth-largest grocer.

Wal-Mart, the world's largest retailer, is increasingly turning to its international operations to dazzle investors as its U.S. business struggles with limited growth and flagging sales at its near-4,100 stores.

It is a tack also being taken by its nearest rivals, France's Carrefour (CARR.PA), with stores in 30 countries, and Britain's Tesco, with sites in 13 countries, as they seek to find new growth to offset sagging trade at home.

Net sales for Wal-Mart's International business, spanning 2,900 stores, rose 17.5 percent in the 12 months ended January 31 to $90.6 billion.

At its U.S. Wal-Mart Stores, net sales rose 5.8 percent to $239.5 billion.