• USA Today, The New York Times , Wednesday, October 22, 2008 10:30 AM

The CEO of Wal-Mart's U.S. division sees "disturbing behaviors" among shoppers over the past few months, including surging sales of baby formula at the start of the month when families are more likely to be flush from payday.

Credit card use has declined dramatically, says Eduardo Castro-Wright, telling a Los Angeles audience that people have maxed out on their limits. About 80% of shoppers cite "personal financial security" as their top concern in internal surveys, he says, up from 65% just a few months earlier. Gasoline prices were the top concern a year ago.

Wal-Mart also has seen a rise in purchases of staples instead of discretionary items. And shoppers have more then doubled purchases of private-label items, according to Chris Woodyard's report, eschewing name brands.

Meanwhile, the Times reports that Wal-Mart executives in China plan to reveal a new supplier agreement today that will require manufacturers to allow outside audits and to adhere to specific social and environmental criteria. It will also move toward longer-term commitments with fewer suppliers.

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