Wal-Mart CEO expects 'positive' 4Q sales

The chief executive officer of Wal-Mart Stores expects positive United States sales in the fourth quarter this year as it works to turn around several quarters of sluggish sales.

CEO Mike Duke made the remark at an investor meeting in Rogers, Arkansas, on Wednesday.

Executives from Wal-Mart's US, international, and Sam's Club units were outlining plans to improve growth at the meeting.

The world's largest retailer benefited during the recession as affluent shoppers traded down to cheaper stores.

But stubbornly high unemployment and tight credit are still squeezing its main US customers, lower-income workers who are having even more trouble stretching dollars to the next pay-day because of tight credit and an unemployment rate stuck at almost 10 per cent.

In its most recent quarter, Wal-Mart's international business rose almost 16 per cent to US$25.9 billion, while total Wal-Mart store revenue in the US rose a meagre 0.6 per cent to US$64.6 billion.

The company has also been trying to fix some merchandising missteps, restoring items it cut last year and returning to everyday low pricing after steep rollbacks failed to excite shoppers.

Sam's Club warehouse clubs have performed better than US stores. That unit reported second-quarter revenue rose 3.4 per cent to US$12.46 billion.

On Wednesday, the company said it will expand electronics and jewellery offerings at Sam's Club, including selling Apple Inc's iPhone and iPad.

Duke said improving US revenue in stores open at least a year is a "critical" priority.

That measure is a key indicator of a retailer's performance because it excludes growth at stores that open or close during the year.

- AP