Goldman Gloomy on Wal-Mart

The selling in Wal-Mart shares spread to the rest of the retail sector, as the S&P Retail Index was recently down 0.5%. HSBC analyst Mark Husson says, though, that Wal-Mart's problems aren't a reflection of the broader industry.

"Obviously the consumer has been gradually slowing down, and everybody sees that, but Wal-Mart has its own issues," Husson says. "Its stores have become middle-aged. They've lost their youthfulness."

Husson, who holds a neutral rating on shares of Wal-Mart, notes that 2007 will be the first year that over 50% of the company's Supercenters are five years old or more. So, he says, the company's remodeling efforts were a smart move, and it's premature to assume they won't start to boost sales soon.

"The new spring merchandise is only just coming in," says Husson. "There was a lot of disruption in the third quarter from all the remodels, so now we should begin to see the benefits of those remodels coming through against a period of time when there was disruption, and that could get the comps going again."