Wal-Mart sees US shoppers stay away

Feb 22, 2011, 16:38 GMT

New York - Wal-Mart lost customers in its home US market as same-store sales fell in the fourth quarter, the world's largest retailer said Tuesday.

Sales at existing US stores fell 1.8 per cent, the seventh quarter in a row of declines.

The decline in same-store sales prompted some analysts to say the chain had lost sight of founder Sam Walton's pledge of everyday low prices. Instead management has offered sales discounts on certain items, while increase prices of others.

'Some of the pricing and merchandising issues in Wal-Mart ran deeper than we initially expected, and they require a response that will take time to see results,' Chief executive Mike Duke said in a statement.

Revenue rose 2 per cent over the year-earlier period to 116.4 billion dollars, the Bentonville, Arkansas-based discounter said. The increase came largely on international growth, including the purchase of South African chain Massmart. Wal-Mart also profited from success at its warehouse membership club Sam's Club.

Profits rose 27 per cent to 6.1 billion dollars.

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