Wal-Mart Profits Surge 17%

Execs admit retail giant lost its way

(NEWSER) - Walmart is suffering its worst-ever slump in US sales and is widely expected to post more disappointing figures when it reports earnings today. Analysts say the retail giant's woes are the result of its failure to follow founder Sam Walton's formula of providing ordinary Americans with "every day low prices." Instead, the chain—facing stiff competition from rivals like Target—chose to offer "rollback" discounts on some products while hiking the price of others. More»

Sends harmful message, say activists

(NEWSER) - Wal-Mart has dropped the price of a black Barbie doll in a move that's raising a ruckus. "Both are great dolls," carefully emphasized a Wal-Mart spokeswoman. But the price was cut $2 for a black Ballerina Teresa Barbie from the $5.93 for the white version because the black Barbies weren't selling. "Pricing like items differently is a part of inventory management in retailing," said the spokeswoman. But a Harlem activist warned that such a strategy in this case "can have collateral damage." More»

Funeral homes face competition from discount caskets

(NEWSER) - America's leading big-box store is now also a pine box store. Wal-Mart has started selling a range of discount coffins on its website and plans to expand its death products to include pet urns and memorial jewelry. Prices start at just $895 for a steel coffin. Funeral home owners say they're not too worried about the competition. Wal-Mart will never be able to replace the human touch funeral home directors offer, the head of an industry group tells AP. More»

Chain plans to open 80 temporary stores in time for holiday shopping season

(NEWSER) - Toys R Us is getting ready to go on the offensive in the battle for holiday sales, the Washington Post reports. The company—which snapped up the KB Toys and FAO Schwarz brands earlier this year—plans to open 80 temporary "Holiday Express" stores in malls across the country, and will open toy shops in 260 of its Babies R Us locations. More»

(NEWSER) - Retailers are seeing the slowest back-to-school season in many years as consumers cling to their cash, the New York Times reports. Estimates on sales, an early indicator of how stores will fare in the holiday season, show declines of 3 to 8% from last year, which saw a 1% increase. Spending is expected to drop on clothing, electronics, and every other category apart from traditional school supplies like pencils and notebooks. More»