Walmart Reloads Gun Sales in Return to Retail Roots

Wal-Mart (NYSE: WMT) may be the world�s biggest retailer, but that doesn�t mean the company doesn�t have plans to keep growing. From planned grocery deliveries to inner-city residents to Wal-Mart�s recent purchase of a social media company, there seems to always be something new in store.

The latest news, according to Wall Street Journal reports, is that Wal-Mart Stores Inc. will be reloading gun sales � cutting back on electronics floor space to make room for rifles, shotguns and ammunition at hundreds of U.S. stores.

Now before you go making this the latest political football, remember that the bottom line is always the bottom line for the King of Retail. And that bottom line hasn�t been very impressively lately. WMT stock is slightly in the red over the last 12 months while the S&P 500 has tacked on 11%. This is no surprise, given seven straight quarters of same-store sales declines in the U.S.

Wal-Mart stopped selling guns and ammo at most of its U.S. stores five years ago, but is now stocking up on firearms and nearly half of its some 3,600 U.S. locations. Spin doctors at the corporation claim this is part of a larger focus on “heritage categories” — fishing rods and bolts of sewing fabric that were cut out of aisles as the discounter tried to appear more �upscale.�

Upscale obviously didn�t work. A few of years ago, Wal-Mart eliminated thousands of to declutter its stores — but suffered more customer complaints than anything else. In September, managers made an about-face and began restocking the shelves as Walmart added thousands of new products. And just a few weeks back, WMT announced an ad campaign where Walmart reasserts its low-price roots. That, essentially, leaves the company right back where it started a few years ago.

That isn�t a very heartening sign for shareholders. After all, businesses are meant to grow and seize more opportunities, not just put it in neutral.

But in Walmart�s case, it may be wise to simplify and return to the mission that made this store a retail powerhouse. Sprawling rural and suburban SuperCenters offering guns and ammo and cheap clothes, food and furnishings made the franchise what it is today. Why tinker the model if it was so darn profitable?

In Walmart�s case a return to previous business success could be the best move � especially after some new ideas that have fallen flat.

Jeff Reeves is editor of InvestorPlace.com. As of this writing, he did not own a position in any of the stocks or funds named here. Follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook.