Shares in Wal-Mart Stores slipped in early trade today (14 February) after analysts at JP Morgan downgraded the US retail giant to neutral ahead of the group’s fourth quarter results.

Wal-Mart shares had dipped 1.1% at 16.31 (GMT), trading at US$55.08.

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In an investor note, JP Morgan warned that the company was being hit by declining customer spending, weak traffic and a loss of market share to other value retailers.

“We don’t think Wal-Mart had a great holiday season and, if anything, believe the comp trend became sequentially worse as the quarter progressed,” the analysts wrote.

Wal-Mart has faced increasing competition from value and upmarket retailers and, JP Morgan concluded that the company’s response has been inadequate.

“We think the company is moving too slowly and missing a big opportunity during today’s challenging economic times to solidify its positioning.”

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