The chief executive officer of Wal-Mart Stores Inc said on Wednesday that he is optimistic about the Christmas season.

I feel good about Christmas, Lee Scott said, speaking at the company's analyst meeting.

U.S. retailers are headed into the crucial holiday shopping season amid an uncertain economic environment as shoppers face higher food and fuel costs and a slowing housing market.

Customers are being pinched, Scott said. Economically it is a challenging time, particularly throughout North America.

To try to lure customers into its stores, Wal-Mart already has slashed prices on thousands of items, including popular toys, for the holiday season.