Wal-Mart pledges to keep customers in a better economy

FAYETTEVILLE, Ark. -- Wal-Mart Stores' newly installed President and CEO Mike Duke pledged to shareholders Friday that the world's largest retailer will build on its success by keeping its customers even when the economy improves.

But at an annual meeting that was often about celebrating recent business success, the CEO emphasized that the discounter also needs to make even more strides in larger issues of sustainability and health care.

"I believe the economic crisis has brought a fundamental shift in consumer attitudes and behavior," Duke told cheering shareholders packed into a University of Arkansas arena in Fayetteville, about 30 miles from its Bentonville headquarters.

"There is a 'new normal' in which people want to save money and are getting smarter about saving money. ... So let me be clear, and people ask me about this all the time: Our customers will stay with us when this economy turns around," he said.

As a testament to recent success, Wal-Mart announced it would launch a $15 billion share buyback. The program replaces a $15 billion program begun in 2007 that $3.4 billion of remaining authorization.

In his address, Duke touched on various issues from increasing career advancement and developing better training for its workers to accelerating its environmental efforts like further reducing waste.

Duke, who had been vice chairman of the company's international business, succeeded Lee Scott, who retired Feb. 1. Scott is continuing as chairman of the executive committee of the board until January 2011.

Chief Financial Officer Tom Schoewe told shareholders that the company was increasing sales and profits faster than its competitors. He noted that Wal-Mart forecast earnings per share for fiscal 2008 of between $3.30 and $3.43.

The company came in at $3.35. Meeting that projection came as the economy went into a nosedive.