Letter: Wal-Mart

Sir: You report (15 June) that the entry of Wal-Mart into the UK will slash margins in the UK retail market, leading to lower prices for consumers. But existing UK retail margins are about 6 per cent. Wal- Mart made profits last year of some $5bn on sales of $85.5bn - a 5.85- per-cent pre-tax return on sales. Not much opportunity there for reduced prices, unless, of course, employee costs are to be reduced and consumer choice restricted .

M S BRYANT

Honfleur,

France