Walmart, the world’s largest retailer, has cut its sales forecast for its next fiscal year and projected a drop in capital spending.

Walmart Stores said it now expected sales would grow between two and three per cent in fiscal year 2015 that begins February 1, down from the previous forecast of three per cent to five per cent.

For fiscal 2016, the US retail giant projected sales growth of two to four per cent.

The company also said it plans capital spending of $US10.6 to $US11.6 billion ($A11.47 to $A12.55 billion) in 2016, down from its projection of $US11.3 to $US11.8 billion for 2015. One reason is a shift to greater emphasis on e-commerce.

“Our business and customers continue to evolve and so will the way we deploy capital,” said CEO, Charles Holley.

“We will invest more heavily in e-commerce initiatives, while temporarily moderating our global physical growth, particularly larger stores.”

In August, Walmart cut its profit outlook for this year amid weak sales in its key US division.

The retail giant has said sales in the US have been hit by cautious consumer sentiment, cutbacks in public assistance programs and an uncertain labour market.

Shares in Dow member Walmart closed 3.6 per cent lower at $US75.20 on the New York Stock Exchange.

AFP