According to the analysts, Wal-Mart's outlook suggests a slowing economy:
The tepid outlook from Wal-Mart — considered a barometer for the retail industry — could serve as a warning bell that rising gasoline prices and a weakening housing market will continue to erode consumer spending in the coming months. Home Depot Inc. reported a 29.5 percent drop in first-quarter profits on a slight increase in sales the same day. [Yahoo news]
What does this mean? Well, start getting efficient. Expect things to slow down - and plan accordingly. Do NOT cut prices, but find ways to add huge value to your clients without raising rates (too much - your costs are rising as well).