Wal-Mart’s profits have slightly surpassed the analysts’ expectations but the strategy of aggressive discounts has not worked in its favour. It was seen though the profit has increased during the quarter, the sales in U.S has been a dull affair.

This is mainly due to high unemployment and high credit plaguing the Americans. The drop in sales was seen in stores that have been open at least a year (same-store sales). This is a cause for concern as it indicates the bad shape of these stores even when compared to the recession times.

Statistics show that net income of Wal-Mart rose 3.6 percent which is 97 cents a share when compared to the second quarter of last year.

This was almost the same as the share forecast by analysts surveyed by Thomson Reuters. Wal-Mart also had to stock some items it had cut back as the customers were unhappy about its decision.

Home depot had similar figures to share as their profits too went up marginally but the same-store sales had reduced. The company reduced its sales forecast growth for the year to 2.6 percent.

Carol B. Tomé, chief financial officer and executive vice president of corporate service is expecting the store visits to grow during the second half but is anxious about the spending per visit by customer. Revenue rose 2 percent and helped home depot boost its net income to $1.19 billion for the second quarter.

Saks on the other hand employed a completely different strategy. They reduced the stocks and sold them at full price.

The chairman and chief, Stephen I. Sadove said that they had seen substantial growth in full-price selling. They have also been offering good-better-best products. This has increased their same –store sales.