Wal-Mart sharpens low-price focus

The project largely failed, as shoppers who could not find basic goods at Wal-Mart turned to dollar stores and other competitors for everything from fishing lures to fabric.

"It didn't resonate," said Duncan Mac Naughton, chief merchandising officer for Wal-Mart's U.S. discount stores.

Now, Wal-Mart is going back to founder Sam Walton's strategy, touting low prices all the time on a wider assortment of goods.

"Losing a customer is a terrible thing to do and getting them back is the hardest thing in the world," said Sanford Bernstein analyst Colin McGranahan. "It's an important step in their remerchandising strategy, but how significant an impact this has on their traffic I think remains a question mark."

The commitment is the first major effort unveiled by Mac Naughton since he started his new role in January.

"If the customer wants it, it's going to go in the store," he said. "If we don't have the right snow blower selection, we're going to have the right one."

Wal-Mart's U.S. discount chain must also show investors that it can reignite growth. Its sales at stores open at least a year have fallen for seven consecutive quarters -- a sharp contrast to the growth seen during most of the recession, when shoppers sought out its stores for low-priced goods.

"The issues that we've seen over the past couple of years are ultimately correctable," said Morningstar analyst R.J. Hottovy.

Wal-Mart's shares gained 10 cents to $52.64 in early trading.