Walmart Announces Another Round Of Rollbacks

While Wal-Mart Stores says its first-quarter sales and earnings both hit record levels, it is worried about its struggling customer base, and the company unveiled steep price rollbacks to win them over.

The Bentonville, Ark.-based retailer says sales for the quarter climbed 6% to $99.1 billion. But comparable-store sales in the U.S. actually declined 1.4%, and it is expecting a further drop in the U.S. of 2% in the coming quarter.

Separately, the company announced another round of deep price rollbacks on 22 favorite foods and everyday items, slashing an additional 30% off these products, citing evidence that its core customer is still feeling pinched by the economy. It says its research has found that mothers across the U.S. continue to worry about finances, with 75% searching for dollar-stretching deals.

For 78%, saving money on basic items and everyday purchases is "critical." And 71% say they are putting greater personal responsibility on their spending habits. Because these latest cuts focus on pantry essentials, the company says they are "the most significant rollbacks in the company's history." Walmart estimates the reductions will save the average Walmart grocery shopper an additional $28 each week.

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