SADDLE BROOK, NJ - An in-depth Associated Press feature highlights Walmart's efforts at reversing its recent operational decisions, strategies that failed to gain traction and allowed dollar stores to grow, and for Target and warehouse clubs to cut into its market share.

"Three years ago," the AP wrote, "Walmart ruled for convenience, selection and price. But today it is losing customers and revenue, and smarting from shat backfired."

The mega-retailer reduced the number of its SKUs, much to the consternation of its most loyal customers, who ventured elsewhere to stock up on their favorite brands.

As a result, revenue at Walmart stores open at least a year have fallen by an average of 0.75 percent each quarter, according to the International Council of Shopping Centers, while revenue jumped nearly 1.7 percent at Target, 8 percent at Costco and 5.9 percent at Family Dollar.

In an effort to reverse the trend, Walmart has begun emphasizing low prices and adding back the thousands of name brand products it previously eliminated. It is also planning expansion into cities and neighborhoods.

"We are running a better business because our competitors cause us to raise our own game," said Walmart CEO Mike Duke.

Walmart's "decline" began in mid-2009, after it removed thousands of name brand products from its inventory. The retailer eliminated 20 percent of its groceries, or about 10,000 items in that area of the store.

"We cleaned the stores up, but we cleaned them up too much," Duke said.

Additionally, the company strayed from its "everyday low prices" mantra and instead selectively cut prices on inventory. Combined with the reduced product selection, the fallout was gradual but noticeable.

"[Shoppers are no longer confident that they can] take care of their shopping list on one trip and get rock bottom prices," said Robert Buchanan, a retail stock analyst.

Revenue at Walmart stores has fallen for six consecutive quarters, the longest such stretch since 1980. And at the same time, dollar stores have begun flourishing.

"The number of openings of dollar stores, and just the sheer density and convenience has been a (competitive) factor" for Walmart, said Duke. "There??s no doubt the customer wants value, but they also want convenience."

Among the elements that Walmart expects to help fuel its growth are the following:

• Resuming its "everyday low prices" promise. It has begun pressing suppliers for the lowest prices on items.
• Restocking thousands of grocery items it previously eliminated.
• Revitalizing its clothing line.
• Offering products in smaller sizes, most for under a dollar.
• Opening smaller format stores, with some less than 30,000 square feet.
• Entering urban markets, like Chicago, New York, and Washington.
• Entering "food desert" areas in neighborhoods that have limited shopping options.

"We have an opportunity here to grow our business, to serve more customers, to open stores, and that is something we are positive about," Duke said.