Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Wal-Mart Brings Back 8,500 Products in Bid to End U.S. Slump

Don't Miss Out —
Follow us on:
Wal-Mart Stores Inc Chief Executive Officer Mike Duke
Wal-Mart Stores Inc Chief Executive Officer Mike Duke. Photographer: Andrew Harrer/Bloomberg

April 11 (Bloomberg) -- Wal-Mart Stores Inc., the world’s largest retailer, is restoring 8,500 products to store shelves to help reverse a sales slump in the U.S.

Stores will add 11 percent more products on average, with “It’s Back” flags on the items, the Bentonville, Arkansas-based company said today. New pasta, beverages and snacks have already arrived, and fresh groceries, electronics, sporting goods and apparel also will reach shelves this year.

Wal-Mart is kicking off a new ad campaign and renewing its focus on pledges to match local rivals’ prices, part of Chief Executive Officer Mike Duke’s bid to stem seven quarters of sales declines at U.S. stores open at least a year. Duke also is opening smaller Express stores to recapture market share lost to dollar-store chains.

“Wal-Mart is making progress with their remerchandising, and the launch of the ad campaign shows that most items to be returned are now back in the stores,” Colin McGranahan, an analyst at Sanford C. Bernstein, said in an e-mail. “Whether that will be enough to lure disenchanted customers back remains to be seen.” The New York-based analyst rates the shares “market perform.”

Wal-Mart’s supercenters each carry about 142,000 items, according to its website. The retailer’s sales at namesake U.S. stores account for almost two-thirds of its more than $420 billion in total revenue.

At an investor conference last month, U.S. chief Bill Simon said he had seen “an improving positive trend” in sales from the previous month. The retailer predicted the movement in first-quarter fiscal 2012 comparable-store sales in the U.S. would be between a 2 percent drop and little change. Wal-Mart plans to report first-quarter results in May.

Price Checks

The retailer also said it’s increasing price checks against rivals, working with suppliers to cut costs and simplifying the ad-matching guarantee. The company’s “reputation was founded on the principle of providing low prices day-in and day-out on the broadest assortment of merchandise,” Wal-Mart Chief Merchandising Officer Duncan Mac Naughton said in the statement.

Duke promoted Mac Naughton to his new post in January, the latest move in a senior management overhaul that’s taken place over the past twelve months. His predecessor, John Fleming, had removed thousands of items from stores in 2009 in an attempt to reduce clutter and focus on faster-growing product categories.

Wal-Mart rose 28 cents to $52.82 at 4:00 p.m. in New York Stock Exchange composite trading. The shares have fallen 2.1 percent this year.

To contact the reporters on this story: Matthew Boyle in New York at mboyle20@bloomberg.net; Sarah Shannon in London at sshannon4@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.