This line from CEO Mike Duke is ominous: “Some of the pricing and merchandising issues in Walmart ran deeper than we initially expected, and they require a response that will take time to see results... There is no greater priority for Bill or me than getting sales back into positive territory. "
This stage of the cycle for Wal-Mart is ugly: The higher-end buyers who became Wal-Mart customers during the crisis have gone back to higher-end shopping. Conversely, the low-end buyers haven't seen much of a recovery yet.
This chart of Wal-Mart vs. the S&P gives a nice long-term look at how badly this company has underperformed the rest of the market.
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