• MSNBC, Tuesday, July 8, 2008 10:30 AM

While other retailers are slogging through the triple whammy of an economic downturn, rising gas and food prices and a deep housing slump, Wal-Mart has benefited by drawing in shoppers who previously spurned the retailer and retaining the business of those who say they dislike shopping there. Its share price is up and same-store sales, a key measure of a retailer's health, have improved.

Simply put, a weak economy may turn out to be Wal-Mart's strong suit. Wal-Mart spokeswoman Melissa O'Brien says the retailer has "absolutely" benefited from the fact that more Americans need to pinch pennies. But she thinks the company's efforts to make shopping there more appealing -- including extensively remodeling stores, working to improve customer service and revamping the product mix -- also have helped keep them coming back.

Wal-Mart, which reports June sales this Thursday, has worked to make its image more modern and has undertaken a major effort to improve its reputation, countering attacks over its wages and benefits, and has worked to make its business more environmentally sustainable.

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