Wal-Mart Bets on Reduced Prices; European Retail Sales Decline Most in Nine Months

Inquiring minds are reading European Retail Sales Decline Most in Nine Months.

European retail sales declined the most in nine months in February as rising unemployment prompted consumers to cut back spending.

Sales in the 16-nation euro region fell 0.6 percent from January, when they decreased 0.2 percent, the European Union’s statistics office in Luxembourg said today. That’s the biggest drop since May 2009. Economists forecast sales to remain unchanged, the median of 15 estimates in a Bloomberg News survey showed. From the year-earlier month, February retail sales declined 1.1 percent.

In the 27-nation EU, retail sales remained unchanged from January while declining 0.7 percent from a year earlier. Sales declined in 13 EU member states and increased in seven, today’s report showed. Portugal had the biggest drop, with a 3.4 percent decline.

Wal-Mart Cuts Prices On Thousands Of Items

Meanwhile, back in the US Wal-Mart Bets on Reduction in Prices

Wal-Mart Stores Inc. is cutting prices on thousands of products in an aggressive campaign to reinforce its reputation as a discount leader, as the company seeks to reverse months of slowing U.S. sales.

The company says it believes that, despite increasing consumer optimism, many Americans will continue to struggle in the months ahead. So, it is cutting prices this week on roughly 10,000 items, mostly food and other staples. The company declined to specify the sizes of the cuts.

Mr. Quinn said Wal-Mart expects to expand the number of price cuts in coming months with help from suppliers. Wal-Mart is encouraging them to reduce what they charge the chain in exchange for having it spotlight their products as part of its price “rollback