By Brad Dorfman
CHICAGO (Reuters) - Wal-Mart Stores Inc should see improvement in sales at its U.S. discount stores in the fourth quarter as the company returns items to shelves and focuses anew on low prices across the store, the company's chief executive said.
"I expect to see positive sales results in this fourth quarter," CEO Mike Duke said of the unit in comments at the world's largest retailer's annual meeting with analysts and investors.
The U.S. unit has seen sales at stores open at least a year fall in each of the past five quarters.
Wal-Mart has faced increased competition from lower-priced dollar stores that have attracted some customers that have been hit hardest by the economy. At the same time, customers that are feeling a bit more secure have been trading up to rivals like Target Corp.
Wal-Mart also shot itself in the foot, first through a poorly executed attempt to cut down on the products in its stores and then a failed attempt to increase traffic with thousands of temporary price "rollbacks."
The company has shifted its focus back to offering "everyday low prices," instead of the "rollback" strategy. It has also been returning items to the shelves.
The focus on "on topline sales, is a critical, critical priority," Mike Duke said
Internationally, Duke lauded opportunities to expand, especially in emerging markets like China, Brazil and Mexico.
The immediate task for the international unit is to deliver "profitable growth" in key markets, Duke said.
Wal-Mart shares were up 55 cents, or 1 percent, at $54.47 on Wednesday on the New York Stock Exchange.
(Reporting by Brad Dorfman, editing by Dave Zimmerman)
