Wal-Mart’s (NYSE:WMT) growth has been slow due to tough economic conditions in the U.S. Since the retailer already has an enormous customer base in the country, the domestic revenue growth is largely dependent on the growth in population, per-capita consumer spending and inflation. However, Wal-Mart’s international segment has grown much more quickly in recent years and is one of the main growth drivers going forward. Being a value focused retailer, Wal-Mart has gained acceptance in a number of emerging markets including Brazil, Mexico and China. In 2011, the retailer generated $125 billion in revenues and $33 billion in gross profits from its international business. 
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With its low price advantage and wide selection, Wal-Mart attracts customers in emerging economies and has gained retail market share in its main markets. For instance, during the last two quarters, every international region generated positive comparable store sales growth for Wal-Mart, with the main contribution coming from the U.K., Canada and Mexico.  Brazil, Mexico and China still remain Wal-Mart’s key focus areas for future growth, as they are among the largest emerging countries. In the last quarter, Mexico and Brazil’s revenues increased by 10% and 11% respectively, with their comparable store sales growing by about 5%.
Ever since the launch of its first international store in 1991, the revenue contribution from the international business has been increasing. In 2006, the international business accounted for about 22% of Wal-Mart’s overall revenues, which rose to 29% in 2011.  We expect this figure to reach 35% by the end of our forecast period. Additionally, revenues from its international business have increased at an annual rate of 15% over the past two years.
Due to this growth potential, Wal-Mart’s international business segment constitutes about 40% of the retailer’s value according to our estimates.