This may come as a little surprising coming from the worlds largest retailer, but Walmart is predicting that sales may be flat this holiday season. This will not be good news for many retailers that are struggling to survive. Walmart is actually enjoying increased sales for 2009, since more people are looking for ways to save a few bucks. Walmart also contribute their robust sales to lower food prices as well.

In a recent news article the retailing giant also stated:

Last week, the retailer announced $3.2 billion in third-quarter income, and a record 84 cents per share in profit.

“The sales environment continued to be difficult this quarter, but customer traffic is up throughout the company. We gained market share, especially in the United States, the United Kingdom and Mexico, as customers around the globe.

Earlier this month, the retailer announced a series of weekly price cuts on thousands of items across all departments. Wal-Mart has frequently in the past lowered prices to undercut rivals and generate sales volume. Its economy of scale allows the company to procure items at a lower cost than its smaller rivals.

Which does make one wonder how other vendors will be able to maintain lower pricing and lower profit margins trying to compete against Walmart. What do you think? Does Walmart have an unfair advantage over other retailers because of their size?

Do you shop at Walmart and why?

Comments welcome.