Life is tough—even for retail giant Wal-Mart. Despite their well-earned reputation as the most efficient merchant in the history of retailing, Wal-Mart just reported their first quarterly profit decline in a decade. The decline is skewed by Wal-Mart’s wise decision to close down their failing German stores. On the domestic front, sales are stagnant as result of higher energy costs. Customers are shopping less often, and store utility 
expenses have increased as well. Industry expert believe Wal-Mart can still recover and hit their projected annualized earnings. Wal-Mart is on the move with store remodeling, and the chain is also beginning to stock higher margin merchandise. Super centers with groceries are popular, although there is less margin for Wal-Mart in the food business. The chain is courting Target shoppers, but it will take years for Wal-Mart to buff their brand cache to give Target a run for the money. We learned about this development from The Associated Press. Photo Credit: Associated Press
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