| 11/16/2010 |
BETTER HOLIDAY FOR WALMART? |
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AP-Walmart expects a return to broad discounts and wider product selection to finally reverse its U.S. fortunes this holiday shopping season after six straight quarters of falling sales.
The world's largest retailer has faced increased competition from lower-priced dollar stores that have lured shoppers hardest hit by the economy and high unemployment.
It is also retreating from a poorly executed reduction in the number of products on its shelves and a failed attempt to increase traffic with thousands of temporary price "rollbacks."
Under Chief Executive Mike Duke and new U.S. chief Bill Simon, Wal-Mart has been bringing back many of those products and offering low prices on a wider array of goods.
Wal-Mart said on Tuesday that the strategy would help raise U.S. same-store sales in the fourth quarter.
"Walmart U.S. will be the price leader this holiday season, and I am confident about improving comp trends for the fourth quarter," Duke said in a statement.
It also posted a higher third-quarter profit, buoyed by cost cuts and international sales, and raised its full-year earnings forecast. Wal-Mart shares rose as much as 2.6 percent early Tuesday and were up 1.1 percent in afternoon trading.
"The next couple quarters in general are certainly going to be a test for new management and viewed as a barometer of how they're doing," said Edward Jones analyst Matt Arnold.
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