Wal-Mart surprises many

Posted on May 13, 2008
Filed Under Business |

With American consumer spending under immense pressure, Wal-Mart Stores surprised Wall Street on Tuesday when it reported strong sales in its first quarter. Now the question on investors’ minds is how is the world’s largest retailer continuing to lure customers despite the turmoil in the U.S. economy?

The answer: Wal-Mart Stores low prices are driving sales with customers flocking to buy basics like groceries, shampoo, cleaning supplies, and pharmacy items. But once customers buy what they need they are also purchasing other items as well. Surprisingly one area of strength was consumer electronics.