Wal-Mart CEO sees no sharp upturn in economy

16 April 2009

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.