The head of Wal-Mart Stores Inc.’s U.S. discount stores has some bad news for grown-ups this holiday season — expect to get practical, everyday gifts.
“For all you adults out there, I think you should plan on socks and underwear for Christmas,” Bill Simon, president and CEO of Wal-Mart’s U.S. division, said at a presentation at an analyst conference.
Consumers are continuing to be frugal in a weak economy, and the holiday season is expected to be “very competitive” and focused on prices and practicality, Simon said.
Simon was named head of U.S. discount stores for Wal-Mart in June and is charged with improving sales at the unit, which has seen sales at stores open at least a year fall for five quarters.
One of the ways the company is trying to improve sales is by putting back products cleared from stores during its “Project Impact” store overhaul in 2008.
The company has been putting food and other items back on shelves and is moving into hardware and fishing, Simon said.
Wal-Mart is “going as fast as we can” to restore items, he said, but depending on the item, it can take time for a supplier to get it back into stores.
Wal-Mart shares were up 19 cents, at $52.85, on the New York Stock Exchange early Wednesday afternoon.
