Check Out penny-pinching U.S. shoppers helping push Wal-Mart to a better-than-expected fourth-quarter profit.
Cash-strapped U.S. consumers, who have been enduring falling home values and rising grocery and energy bills, turned to Wal-Mart’s discount stores for low prices on necessities like food.
The world’s largest retailer has cut prices in a bid to win sales in a tough economic environment, and Telsey Advisory Group analyst Joseph Feldman said the company is well-positioned to succeed in the current climate.
“They’ve got a lot of consumable items, like groceries, so they’re going to drive traffic and maybe get additional traffic because of this environment.”
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Foodmakers squeezed by costs, strapped consumers
(Photo: Reuters)
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