Wal-Mart unveils big buyback

By Nicole Maestri

FAYETTEVILLE, Arkansas (Reuters) - Wal-Mart Stores Inc's (WMT.N) announced a new $15 billion share repurchase plan on Friday and said market share gains it has made amid the recession are permanent as a "new normal" emerges in which consumers seek to save money.

"Let me be clear, and people ask me about this all the time, our customers will stay with us when this economy turns around. And when they have more discretionary spending, they'll stay with Wal-Mart. I promise you that," newly installed CEO Mike Duke told the more than 16,000 people gathered for the retailer's annual meeting.

"We are building long-term loyalty to Wal-Mart."

Wal-Mart has grabbed share during the economic downturn as frugal shoppers seek its low prices. Its shares rose 18 percent last year as investors sought a safe haven from the financial crisis.

But the shares have fallen about 10 percent this year as investors seek better returns with more discretionary retailers that might benefit when good times return.

Duke, in his first annual meeting since taking the helm of the discount behemoth on February 1, was adamant that Wal-Mart can retain its new shoppers once good times return.

It is renovating its U.S. stores, decluttering shelves, widening aisles and adding skylights to appeal to higher-income shoppers who are coming through its doors. It has improved its offering of name-brand items, adding Apple (AAPL.O) iPhones and clothes by designer Norma Kamali, to impress new shoppers.

"The improvements we've made, they are permanent and they are sustainable. We are not going back," Duke said.