Wal-Mart to Cut Prices

Bentonville, Ark., Wal-Mart Stores signaled that it will cut prices in the weeks before Christmas after a strategy against deep discounts backfired on the first weekend of the holiday shopping season. The retailer said it had taken a more balanced approach to discounting than in previous years on the day after Thanksgiving, known as Black Friday, but this dampened sales. Wal-Mart has cut its forecast for November sales, saying traffic in the last week of the month was down and sales were disappointing on Black Friday.

"We are disappointed with our sales performance for the Friday after Thanksgiving and the full weekend," Wal-Mart spokeswoman Sharon Weber said. "While our prices were generally as low as they have ever been, our competition was even more aggressive. We have learned from this and will move quickly to respond to what our customer has told us during the rest of the holiday season."

In other news, Wal-Mart hopes to open at least 11 new stores in China next year as the country eases restrictions on foreign retailers under World Trade Organization requirements, according to remarks by Cassian Cheung, the president of Wal-Mart’s China operations.