The head of Wal-Mart Stores (WMT), the world's largest retailer said on Wednesday that he did not expect a quick recovery to the current recession in the US economy.

"There's still a lot of stress. It's not a 'V' recession, where we're just going to bounce out and come back," The chief executive officer, Mike Duke said in an interview on NBC's ''Today Show''.
 
"This is one that's going to take a sustained change in the way that families live and their focus." He added.

Wal-Mart is a huge American corporation, and the third largest company in the world with a whopping turnover of $405 billion, next only to Royal Dutch Shell and ExxonMobil.

Duke, the former vice chairman of Wal-Mart's international division, took over the corporation as CEO in February.
 
Contrary to indications by government officials, Duke was apprehensive about any prospects of a revival early this year, unless the job market improved. The unemployment levels surged to 8.5 per cent in the first quarter, the highest in a quarter of a century with no signs of tapering off.

The federal reserve chairman, Ben Bernake had remarked on Tuesday that recent economic data is encouraging and could signal a bottoming in the decline of economic activity. (See: Bernanke optimistic on recovery; worried over inflation).

Duke said Wal-Mart shoppers are buying in cycles, spending more when they get paid and cutting back when money runs low and more customers are using cash.

In terms of customer buying patters during the recession, Duke said infant and children apparel is a lot stronger than adult apparel as presumably parents are willing to spend on their kids.

Customers are buying cheaper cuts of meat, spending more on vitamins to avoid medical expenses, and also on electronics like home theaters and game systems apparently at the expense of out door entertainment and vacations.

The US consumer prices fell unexpectedly last month, recording their first annual drop in over 50 years due to fall in demand for energy and food items.
 
Dukes comments came after the commerce department reported a 1.1 per cent fall in retail sales in March while economists were expecting a modest 0.3 per cent gain following a 1.9 per cent increase in January and 0.3 per cent in February.

Meanwhile, US industrial production registered the fifth consecutive monthly fall in March, declining by 1.5 per cent, to hit a decade low amidst a prolonged recession, (See: US industrial output falls to 10-year low in March).  
 
The decline in retail sales during the first quarter is 8.8 per cent compared to the first quarter of 2008.

Analysts say that compared to the 2 to 3 per cent drop during the second half of the 2008, the decline in March is about half the average monthly decline.

Wal-Mart's US sales were up 1.4 per cent against an expected 3.2 per cent. Its main rival Target reported a 6.3 per cent drop in sales last month.
 
Several retailers reported a slump in March sales compared to last year with Abercrombie & Fitch leading with a stunning 34 per cent drop, Saks 23.6 per cent, American Eagle Outfitters 16 per cent, Nordstrom 13.5 per cent, and Macy's 9.2 per cent.

Exceptions include apparel chains that cater to kids and teenagers niche, like Buckle which was up by 14.7 per cent, Hot Topic 7.1 per cent and Aeropostale 3 per cent.

Wal-Mart through its subsidiaries and joint ventures has worldwide presence with 2980 stores spread over fourteen countries, including Mexico, Canada, the UK, Japan, China, Brazil and Argentina.

The Chinese unit said that it will eliminate one management layer in its stores which will affect around 1400 people who will be given option to move to new stores or take up lower positions. There are 147 stores in China employing more than 50,000 people.

Wal-Mart shares were traded at $51.29 yesterday on NYSE, up 0.33 per cent.