Walmart's in trouble. Justice at last!

[ginnyinWI]

Wal-Mart Earns Disappoint, Target Pleases
May 12, 2005 5:59 PM ET

By ANNE D'INNOCENZIO

NEW YORK (AP) - Wal-Mart Stores Inc., struggling with higher gasoline prices and slippage in its leadership in the retail industry, reported lower-than-expected first-quarter earnings Thursday and offered a disappointing profit outlook.

But discount rival Target Corp., which keeps sharpening its appeal to higher-income consumers, enjoyed first-quarter results that exceeded expectations. It offered an upbeat outlook.

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There's no question that higher gasoline prices have hurt Wal-Mart's consumer, but Wal-Mart is struggling with store-level execution," said Bob Buchanan, a retail analyst with St. Louis-based A.G. Edwards. "They're slow at check-out and they're missing a lot of fashion on the selling floor. Target continues to do a better job in merchandising and executions. And its check-out is lightening fast."

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Moreover, Buchanan believes that controversial issues, from gender discrimination to wage-and-hour violations, that continue to dog the retailer have started to take a toll on its performance.

link: http://news.moneycentral.msn.com/ticker/article.asp?Feed=AP&Date=20050512&ID=4445502&Symbol=US:WMT