BEIJING, Dec. 13 (Xinhuanet) -- Wal-Mart Stores Inc, the world's largest retailer, said December sales at US stores open at least a year are rising within its forecast for a gain of as little as 1 per cent, buoyed by food sales.

    The company has forecast a gain of 1 per cent to 3 per cent from a year earlier after November sales missed estimates. Wal-Mart, based in Bentonville, Arkansas, updated results through Friday in a recorded message on Saturday.

    Sales of food have boosted results as shoppers seek out lower-price groceries. General merchandise sales didn't fare as well after Wal-Mart added discounts to draw holiday shoppers, the company said. The retailer lowered prices on two dozen items last week to attract shoppers after curbing promotions the weekend after Thanksgiving.

    "They made a misstep, and they're struggling to come back from it," said Patricia Edwards, who helps manage about US$5.3 billion in assets at Wentworth, Hauser & Violich in Seattle, including Wal-Mart shares. "I've heard of more people going to shop elsewhere just because Wal-Mart wasn't there for them when they thought they should have been."

    Sales of winter-related items were below expectations, Wal-Mart said, without being more specific.

    Regions in the eastern half of the United States have had unusually warm weather for the season, damping sales of winter-related merchandise, according to weather consulting firm Planalytics, which is based in Wayne, Pennsylvania. A series of storms expected to hit the Midwest and East Coast may help boost demand during the next two weeks, said senior business meteorologist Paul Walsh.

    Wal-Mart cut the price of the "Shrek 2" DVD to US$14.77 from US$19.96 and sold the Hotwheels Cyborg for US$19.88 instead of US$33.84, spokeswoman Sharon Weber said. The retailer began running radio advertisements last Saturday and television commercials on Wednesday to highlight the price changes.

    Other retailers offered incentives this weekend to draw shoppers to buy jewellery, sweaters and coats.

    Federated Department Stores Inc's Macy's cut prices as much as 50 per cent on some items from Thursday through Saturday and offered a coupon for an additional 20 per cent off most items. May Department Stores Co's Lord & Taylor chain offered as much as 50 per cent off coats on Thursday.

    Retailers seem to be resisting deeper discounts for now amid more controlled inventory levels, said Michael Niemira, chief economist at the International Council of Shopping Centres, a trade organization.

    "The worry level remains," said Niemira. "The question is, how long can they wait?"

    Nancy Spinosi was unimpressed with clearance offers and discounts at May's Strawbridge's at the Cherry Hill Mall in New Jersey on Tuesday. Signs that had advertised as much as 40 per cent the prior week were no longer at the storefront.

    "We've seen better," said Spinosi, who was shopping with her daughter, Tina. She wasn't willing to wait for additional discounts and risk a store running out something she liked, she said. "The longer you wait, the less selection you have."

    Shares of Wal-Mart fell 6 cents to US$52.71 in New York Stock Exchange composite trading on Friday. They have declined less than 1 per cent this year, valuing the company at US$223.2 billion.

    November sales increased 0.7 per cent, less than Wal-Mart's forecast for a gain of 2 per cent to 4 per cent that month.

    Sales have risen less than 1 per cent in two of the past four months.

    (China Daily)