Lee Scott said the U.S. government's efforts to stimulate the economy should have "some impact," but he added: "I don't see anything that tells me it's going to turn around quickly."
"The second half of the year, you would hope, would be better," he said. "We all hope by next Christmas it certainly isn't any worse."
Wal-Mart, the discount giant, has been gaining market share in the past year as consumers seek out its low prices on items such as food and medicine to stretch limited budgets.
But a year-long recession, mounting job losses and tighter access to credit combined to produce the worst holiday sales season in nearly four decades, according to the International Council of Shopping Centers.
Wal-Mart was not immune to the harsh climate and last week posted lower-than-expected December sales and cut its fourth-quarter profit forecast.
Scott said this downturn may fundamentally change people's spending habits.
"I'm not necessarily convinced that just when all this liquidity and things hit, if you're going to have the same immediate desire to go back to consumption and debt," he said, referring to a potential U.S. government stimulus plan.
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Update 2/13/2009:
Wal-Mart Stores announced Tuesday that it is eliminating as many as 800 positions at its headquarters in an effort to reduce costs.
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