Wal-Mart (NYSE: WMT) is at something of a crossroads. Its management must decide whether to continue to pursue expansion (especially overseas) or shift attention to its current stores, which are posing lackluster sales growth and appear to be in disarray on several levels.

The company has planned to spend $17 billion on capital investments this year, mostly to build new stores and expand existing ones. But is that really what Wal-Mart should be doing? Would it be better to focus on updating and shortening the lines at the 4,000 U.S. stores?

I think it would. Wal-Mart has plenty of time to expand overseas, and will be arriving well ahead of Target (NYSE: TGT) whether they start this year or two years from now. But the problems plaguing the current U.S. stores, if not addressed, could give Wal-Mart continued problems with sales growth and lead to more opportunities for Target, which many customers already seem to prefer.

Here's my proposal for Wal-Mart. Take a one-year break from building more stores, and focus on getting the current stores back on track. One lost year of expansion is not much in the long-run and, if it can help to bolster existing stores, it's a wise investment indeed.