Wal-Mart slows financial service center timeline

ROGERS, Arkansas (Reuters) - Wal-Mart Stores Inc has slowed its timeline for opening financial services centers in its stores, as it searches for locations with high concentrations of shoppers to use services like check cashing and bill paying, executives said on Thursday.

The company said it still considers the centers, which also cashes tax rebate checks, a growth opportunity as well as a competitive advantage over rivals.

Wal-Mart's financial services centers will be in 780 stores by year's end and reach 1,000 stores by early next year, which would mean they would be in approximately one-quarter of all U.S. stores. The company recently opened its 500th center.

"We've been growing between 30 percent to 40 percent each week all year," said Jane Thompson, president of the division for Wal-Mart US, referring to income.

Last year, Thompson told Reuters the 1,000 openings would occur by the end of 2008.

The company, best known for selling a wide range of items to low-income shoppers, says the centers benefit about 73 million Americans who do not have bank accounts or access to credit cards, and are largely ignored by banks.

Thompson said the division has seen a 58 percent compound annualized growth rate since its launch six years ago.

To decide where to open its centers, Wal-Mart looks at geographical areas where the target household yearly income is approximately $45,000.

Consumers who use the services tend to make more trips to their local supercenter than the typical Wal-Mart shopper, Thompson said.

"We think this is a competitive advantage," she added.

Thompson spoke to reporters during a media day in advance of Wal-Mart's annual shareholders meeting scheduled for Friday.

(Reporting by Alexandria Sage; editing by Jeffrey Benkoe)