Wal-Mart plans to hire 500,000, sets stock buyback

FAYETTEVILLE: Wal-Mart Stores Inc.'s CEO told shareholders Friday that the company is positioning itself for 20 years of worldwide growth and that it plans to hire a half-million employees over the next five years.

The company also unveiled a new $15 billion stock buyback. But it was short on specifics on how it will turn around weak business at its U.S. Walmart stores as the rest of the retail industry, including its key competitor Target Corp., has started to heat up.

But the recession is continuing to vex the world's largest retailer as consumers keep a tight grip on their money.

"There is business opportunity in the world, but the world is changing fast in big, disruptive, complex ways," CEO Mike Duke told shareholders packed into a University of Arkansas, about 30 miles (50 kilometers) from its Bentonville headquarters.

A year ago, Wal-Mart was in the sweet spot of the Great Recession. As shoppers traded down to cheaper stores, Wal-Mart gained market share and saw big sales gains. But now Wal-Mart is struggling to hold onto customers. Its cash-strapped shoppers are looking elsewhere — such as dollar stores and local grocery chains — for even better deals than Wal-Mart offers. And some better-off customers, feeling more flush again, are heading back to the mall or Target.