Wal-Mart cuts annual profit forecast for second time since August

Wal-Mart Stores, the world’s largest retailer, has cut its annual profit forecast for the second time since August as the discount chain struggles to prevent cash-strapped customers from taking their business to dollar stores and other rivals.

While the company’s low- income customers are among the hardest hit amid persistent unemployment and higher taxes, some troubles are self-inflicted.

The discount chain has alienated some US shoppers because it does not have enough workers to keep shelves adequately stocked, leading some consumers to decamp to smaller-format stores that offer merchandise starting at $1.

Sales at Wal-Mart US stores open at least 12 months excluding fuel fell 0.3 per cent in the quarter ended October 25th. Analysts predicted they would be little changed.
– (Bloomberg)