The head of Wal-Mart Stores Inc, the world's biggest retailer, said on Wednesday there remained a "lot of stress" in the economy and he did not anticipate a quick end to the recession. "There's still a lot of stress," Wal-Mart CEO Mike Duke said on a taped interview on NBC's "Today Show." "It's not a 'V' recession, where we're just going to bounce out and come back," he said.
Duke's comments aired a day after a government report showed that sales at US retailers unexpectedly fell 1.1 percent in March and after Wal-Mart last week reported a lower-than-expected rise in March sales at US stores open at least a year. Also on Wednesday, Burger King Holdings Inc said it faced an "unanticipated traffic slowdown" in March across most company-owned hamburger restaurants, while the government said US consumer prices fell unexpectedly last month, recording their first annual drop since 1955, as slumping demand pushed down energy and food costs.
The reports have dimmed hopes that the US recession is close to hitting bottom, and show consumers are keeping a tight grip on their wallets. In early trading, Wal-Mart shares gained 10 cents to $51.22. He said the downturn will lead to a "sustained change" in the way that families live. But he added that customers are buying electronics, like flat screen TVs or video game systems, as they cut back on entertainment outside of the home or scrap vacation plans.
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