For several years, between roughly 2004 and 2007, Wal-Mart was having a tough time in the market and in the press. Many wondered if the formula simply had tired, or if the company had just become too big to sustain any kind of growth rate.

The stock was beaten down, and was flat or worse for several years. In 2006, it saw same store sales decline one month for the first time ever. There were rumors of secret plans for goosing the stock price, including spinning off Sam’s Club. Wal-Mart suffered embarrassing set backs in Germany and Korea. Arch competitor Tesco from the UK was entering the US market. Efforts to move more upscale in apparel and electronics gained little traction.

Now, you can call it revenge of the Smiley face.

A combination of improved execution and tough economic times are floating the Bentonville, AR boat big time.

First, why do we even discuss this topic? It’s simple – because Wal-Mart has been a recognized supply chain leader, and because its clout with consumer goods manufacturers, based on the volume of business Wal-Mart represents for most of them, makes its moves and fortunes of key supply chain interest for the supply chains of thousands of consumer goods companies.

While most retail stocks are collapsing, Wal-Mart is standing strong. Even after stock price reductions from September highs, Wal-Mart is still up nicely in 2008, a statement few retailers can make.  Rival Target’s Q3 earnings were down 24%; Wal-Mart’s Q3 profits were up.

So, is the Wal-Mart juggernaut back?

Yes and maybe no.

Certainly, Wal-Mart should relatively at least be expected to prosper in tough times. Whether that will hold upon a recovery is unclear.

The company has also righted the ship in some operational/supply chain areas, notably slowing the growth in inventory levels that cost the company in 2004-2006, and led to programs such as “ReMix” and “Inventory DeLoad.” Wal-Mart’s financial data shows those programs have paid dividends.

So, consumer goods manufacturers and retail competitors that may have thought that the “Wal-Mart era” was waning may need to think again.

Whether that’s good or bad is another question,

I’d love your thoughts on this.