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walmart subsidy watch.org

WALMART ALERT


Wal-Mart's Healthcare Cost To Taxpayers By State


wakeupwalmart.com

 
walmartwatch.com

sprawl-busters.com

walmartworkersrights.org

warnwalmart.org

walmartwork.org

walmartsurvivors.com

indiafdiwatch.org

lawmall.com/wal-mart

livingeconomies.org

amiba.net

newrules.org

«
VIDEOS


Wal-Mart: The High Cost of Low Prices

(walmartmovie.com)

Independent America:
The Two Lane Search
for Mom & Pop
(independentamerica.net)

Big Box Mart
(jibjab.com

Garth Brooks Parody (walmartworkersrights.org)

"Is Wal-Mart Good for America?"
Frontline, PBS Video,
www.pbs.org

The Labor Video Project Fighting Wal-Martization

«
BOOKS

The Case Against Wal-Mart
By Al Norman Raphel Marketing ruth@raphael.com:

Wal-Mart: The Face Of Twenty-First Century Capitalism
Edited By Nelson Lichtenstein
The New Press www.thenewpress.com

The Great Risk Shift:
The Assault on American Jobs, Families, Health Care and Retirement
By Jacob S. Hacker
Oxford University Press www.oup.com

War On The Middle Class:
How the Government, Big Business, and Special Interest Groups Are Waging War on the American Dream and How to Fight Back
By Lou Dobbs Viking,
a member of Penguin Group www.penguin.com

Momentum: Igniting Social Change in the Connected Age
By Allison H. Fine Jossey-Bass www.joseybass.com:

Big-Box Swindle:
The True Cost of Mega-Retailers and the Fight for America's Independent Businesses
By Stacy Mitchell,
www.beacon.org
 www.newrules.org

Wal-Mart: The Face Of the Twenty-First-Century Capitalism Edited by Nelson Lichtenstein 
by The New Press www.thenewpress.com

The Bully Of Bentonville
How the high cost of Wal-Mart's Everyday Low Prices is Hurting America
By Anthony Bianco
by Doubleday  specialmarkets@randomhouse.com

How Wal-Mart Is Destroying America (and the World),
By Bill Quinn,
www.tenspeed.com

The United States of
Wal-Mart,
By John Dicker,
www.penguin.com

 Slam-Dunking Wal-Mart,
By Al Norman,
www.sprawl-busters.com

Nickel and Dimed,
By Barbara Ehrenreich, 
www.henryholt.com

Death By Discount,
By Mary Vermillion, 
www.maryvermillion.com

The Wal-Mart Effect
By Charles Fishman www.penguin.com

Megamall On The Hudson
By David Porter and
Chester L. Mirsky
www.trafford.com

«
STUDIES

Big Box Backlash
«
Alachua County Commission
«
Trip Generation Characteristics of Free-Standing Discount Supercenters
«
Shameless: How
Wal-Mart Bullies Its Way Into Communities Across America Study

«
What Do We Know About Wal-Mart? 
«
The Wal-Mart Game
«
The Shils Report
«
PBS Frontline Report
Is WalMart Good For America?

«
Bakersfield Ruling
«
Bakersfield Report
«
momandpopnyc.com
momandpopnyc.blogspot
«
UC Berkeley Labor Center
The Hidden Cost of WalMart Jobs

«
Northern California Big Box Studies 
«
Radio Broadcast
Past Radio Shows
«
The EEOC will hold the companies like Wal-Mart accountable for violating
the Americans With Disability Act. 

read more

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«FEBRUARY 2009

 Article

Date Published Newsource
Ill. Wal-Mart employee sets himself on fire, dies Feb 27, 2009 Associated Press,
Proposed Cave Creek Walmart worries small businesses Feb 26, 2009 By Beth Duckett,
The Arizona Republic
Walmart Employee Threatened With Gun At Receipt Check Station Feb 26, 2009 WFMY News 2
Vt., Texas congressmen join fray in Wal-Mart fight Feb 25, 2009 Associated Press,
Wage-suit settlement gets initial OK Feb 25, 2009 By Greg Griffin,
The Denver Post
Target Luring Customers to Discount Stores with Meat, Produce, Bakery Feb 24, 2009 By Mike Duff,
BNET
Wal-Mart Incident Investigation Complete Feb 24, 2009 ABC Chanle 9
Wal-Mart employee dies after clothes rack accident Feb 24, 2009 By Gregory A. Hall ,
Courier-Journal
Wal-Mart drops Santa Rosa store plan Feb 24, 2009 By Mike McCoy,
THE PRESS DEMOCRAT
Wal-Mart makes follow-on offer for D&S Feb 23, 2009 Associated Press,

Wal-Mart settles suit that charged bias in hiring

Feb 20, 2009 By Robert Daniel,
MarketWatch
Kin of Wal-Mart stampede victim to sue NY county Feb 20, 2009 Associated Press,
Mexico's Walmex aims for expansion amid slump Feb 19, 2009 By Cyntia Barrera Diaz,
Reuters
Wal-Mart Settles South Carolina Wage, Hour Suit Feb 19, 2009 By Lana F. Flowers,
THE MORNING NEWS
Northwest Health To Reopen Walmart Clinics Feb 19, 2009 By Lana F. Flowers,
The Morning News
Wal-Mart workers in Missouri cash in Feb 19, 2009 By Dan Margolies,
Kansas City Star
Residents rise against complexes Feb 19, 2009 By BOB WILSON
Antelope Valley Press
Walmex to invest $805 million, open 252 stores Feb 19, 2009 OLGA R. RODRIGUEZ,
Associated Press
Wal-Mart profit beats Wall St view Feb 17, 2009 By Nicole Maestri,
Reuters
Wal-Mart's 4Q earnings decline 7 percent Feb 17, 2009 Associated Press
Wal-Mart Opens Wallets Feb 17, 2009 Lisa LaMotta,
Wal-Mart Can't Lift Wall Street Feb 17, 2009 Steve Schaefer,
America's Most Popular Stores Feb 17, 2009 Jeanine Poggi,
Shopping
NRC acts after Wal-mart loses radioactive signs Feb 17, 2009 By CHUCK BARTELS ,
Associated Press
Could missing Wal-Mart signs wind up as dirty bomb? Feb 15, 2009 By Muriel Kane,
The Raw Story
Walmart snake bite victim files suit Feb 15, 2009 Sun-Sentinel
Wal-Mart hails court ruling on discrimination suit Feb 14, 2009 Reuters
Microsoft to Open Stores, Hires Retail Hand Feb 13, 2009 By JESSICA MINTZ ,
Associated Press
Wal-Mart will close Macon center Feb 13, 2009 By Michael E. Kanell,
Atlanta Journal Constitution
Wal-Mart names Gearhart top counsel Feb 13, 2009 Associated Press
Wal-Mart Stores promotes Tom Mars to CAO position Feb 13, 2009 Associated Press
Police identify man killed in Wal-Mart shopping cart stabbing Feb 12, 2009 By Mary Manning,
Las Vegas Sun
Microsoft to open own retail stores Feb 12, 2009 By JESSICA MINTZ ,
Associated Press
Wal-Mart Shifts Apparel Buying to New York Feb 11, 2009 By Matthew Boyle,
Business Week
Walmex 4Q profit climbs 4.5 pct on bargain sales Feb 11, 2009 By OLGA R.RODRIGUEZ
Associated Press
Wal-Mart Cuts Jobs Feb 10, 2009 By Lana F. Flowers,
The Morning News
Hard Times May Soften Opposition to Wal-Mart Feb 10, 2009 By George Anderson
Retail Wire

Wal-Mart drives for more Mass. grocery business

Feb 10, 2009 By Jenn Abelson,
Boston Globe
Grocer Price War Threaten Margins Feb 10, 2009 Melinda Peer,
Market Scan

Wal-Mart cutting 700-800 jobs at headquarters

Feb 10, 2009 By CHUCK BARTELS
Lawyer: Wal-Mart stampede witnesses get grand jury call Feb 6, 2009 By ANN GIVENS ,
Newsday
US retail sales fall; Wal-Mart scraps monthly view Feb 5, 2009 By Karen Jacobs,
Reuters
Enterprise and Wal-Mart Boost Their Alternative Fuel Vehicle Fleets Feb 4, 2009 GreenBiz.com
Lawyer alleges price fix in Wal-Mart-Netflix deal Feb 4, 2009 By KELLY P. KISSEL ,
Associated Press
Walmart Suspects Charged Feb 4, 2009 By Jay Sorgi,
TMJ4
Another Shoplifter Death at Wal-Mart Feb 4, 2009 By Al Norman,
The Huffington Post
Saint Martinville Walmart Now Property of the City Feb 3, 2009 KLFY TV 10
Wal-Mart says its trucks 25 pct more efficient Feb 2, 2009 Associated Press
Second Suit Filed Against Netflix and Wal-Mart Feb 2, 2009 By Chris Tribbey
Hme Media Magazine
$21 Million Federal Suit Filed In Shoving Of Wal-Mart Greeter Feb 2, 2009 The Chatanoogan
Bharti-Wal-Mart to start operations from Punjab Feb 2, 2009 Tribune News,
Wal-Mart settles lawsuit in Md. death Feb 2, 2009 Associated Press
Mass. court to weigh Wal-Mart discrimination case Feb 1, 2009 Associated Press
Wal-Mart to Open 60 New Stores in Chile, Peru in 2009 Feb 1, 2009 MVI
Ill. Wal-Mart employee sets himself on fire, dies

Associated Press,
02.27.09                                  
[back to top]

Suburban Chicago officials say a Wal-Mart employee has died after setting himself on fire outside the store where he worked.

Police in west suburban Bloomingdale say 58-year-old Larry Graziano of Carol Stream told officers responding to the scene late Thursday that he "couldn't take it anymore."

Bloomingdale police Sgt. Tim Roberts says bystanders tried to help, but Graziano told them he wanted to die and fought off their attempts to save him.

The Cook County Medical Examiner's office says Graziano was taken to a hospital and pronounced dead about 1 a.m.

Dan Fogleman is a spokesman for Bentonville, Ark.-based Wal-Mart (nyse: WMT - news - people ). He says Graziano was a 7-year employee who worked nights stocking shelves. He says Graziano had no reported personnel issues.

Copyright 2008 Associated Press. All rights reserved.

 [back to top]


Proposed Cave Creek Walmart worries small businesses

By Beth Duckett,
The Arizona Republic
February 26th, 2009                         
[back to top]

Cave Creek small-business owner Madelyn Hines knows a Walmart coming to town could spell trouble for merchants.

But she doesn't blame the giant retailer. She blames the town.

Faced with high costs and plummeting revenues, Cave Creek is pinning its hopes on a prospective Walmart to jump-start its sales tax base. The world's largest retailer wants to build a store on 20 acres just south of Carefree Highway and east of Cave Creek Road. But first Cave Creek must agree to rezoning the land.

The high-profile property at one of the busiest intersections in the north Valley must be rezoned to commercial from residential.

Walmart plans to submit a general-plan amendment and rezoning application with the town in April, Walmart spokeswoman Delia Garcia said.

The Town Council would vote on the requests later this year.

A "yes" vote would give Walmart the assurances it needs. Garcia said the corporation would schedule neighborhood meetings before building. Construction would take about a year.

"We want to involve the community in the development process," Garcia said.

Cave Creek Mayor Vincent Francia supports the project. Big-box retailers are already cropping up along Carefree Highway, he said. It's time for Cave Creek to get its slice of the revenue pie.

At a recent meeting, Francia said the Walmart could resemble Stagecoach Village, an upscale Western-themed shopping center in northeastern Cave Creek.

Garcia could not comment on a future store's appearance, but said Walmart would work closely with the town to comply with its strict lighting ordinance.

"We understand lighting is something that is very important," Garcia said.

For retailers already feeling the pinch, a big-box competitor could be devastating.

In a 1997 study, Iowa State University economics professor Kenneth Stone found that some small towns lost up to 47 percent of their retail trade after 10 years of Walmart stores nearby.

Hines, who opened her store in 1977, said her main concern is Cave Creek's financial "inefficiencies."

"When you keep screwing up and those screw-ups come out to be tremendous mistakes, they have to be paid for," said Hines, who owns the Town Dump, a curio shop that sells eclectic furniture, yard art and other odds and ends.

But not all neighborhood retailers oppose the project.

At el Pedregal shops in north Scottsdale, B Emporium owner Bonnie Bishop said the low-cost retailer would be "convenient." She doesn't expect her home accessories business to take a hit.

Bishop, who lives nearby in Scottsdale, said large-scale development already exists in the area.

"There's a Home Depot there. There's a Lowe's there," Bishop said. "It would be one more store in the area."

[back to top]


Walmart Employee Threatened With Gun At Receipt Check Station

WFMY News 2
February 26th, 2009

Greensboro, NC -- Police say a man put a gun on a Walmart employee's chest after the employee asked to see the man's receipt.

Greensboro police say it happened at the Walmart on Wendover Avenue just before 9:00 pm.

The employee told police the suspect was attempting to exit the store with a shopping cart when asked to see the purchase receipt. Police say the man then turned and placed a handgun on the employees chest before running from the area.

The employee was not injured.

Anyone with information on this crime is asked to call Crimestoppers at (336) 373-1000.

 


Vt., Texas congressmen join fray in Wal-Mart fight

The Associated Press
February 25th, 2009                       
[back to top]

MONTPELIER - Two congressmen - a Democrat from Vermont, a Republican from Texas - are joining the battle against plans for a Wal-Mart store near a Civil War battlefield in Virginia.

U.S. Rep. Peter Welch and U.S. Rep. Ted Poe have sent a letter to Wal-Mart's CEO opposing the plan to build the store in Locust Grove, Va., site of the Battle of the Wilderness.

The 1st Vermont Brigade fought in the battle, which recently prompted Vermont lawmakers to call for relocation of the proposed store.

Wal-Mart and its supporters say the store would be behind a bank and a strip mall, a mile from the entrance to the site of the 1864 clash.

 [back to top]


Wage-suit settlement gets initial OK

By Greg Griffin,
The Denver Post
February 25th, 2009                                 
[back to top]

A Missouri judge has preliminarily approved a settlement of up to $90 million in a wage and hour class-action suit against Wal-Mart, said Denver attorney Steve Long of Polsinelli Shughart.

Long represented the class of more than 178,000 current and former Wal-Mart and Sam's Club employees in Missouri with a team that included Denver lawyers Frank Azar and Gerald Bader. The lawsuits accused the company of forcing employees to work off the clock, changing employee time cards and preventing workers from taking breaks. Azar, Bader and Long represented 69,000 Colorado plaintiffs in a similar suit against Wal-Mart that was settled in 2000.

The new settlement is part of an agreement reached in December in which Wal-Mart settled 63 class-action lawsuits nationwide for $352 million to $640 million.

A Wal-Mart spokeswoman said the suit was filed years ago and that its claims did not reflect the company today.

 [back to top]


Target Luring Customers to Discount Stores with Meat, Produce, Bakery

By Mike Duff,
BNET
February 24th, 2009                   
[back to top]

Target plans to add meat, produce and bakery items at its discount stores in an expansion of food and commodity products designed to get customers onto its sales floors more often.

In a year-end conference call this morning, chairman and CEO Gregg Steinhafel said Target had seen a “fundamental change in consumer spending patterns.” The company is concerned that consumers, even after the recession ends, can’t be coaxed back to stores by style alone.

Certainly, expanding the assortment of perishable food at discount stores, which already includes deli and dairy items, will take time and be expensive, and not only as regards actually installing product and the coolers that display it. Consumers often are reluctant to change where they shop for perishable food once they have confidence in a particular store’s freshness and quality.

So if the meat, produce, bakery troika represent a long-term adaptation to changing consumer behavior, Target will deal with the immediate issue of consumer wariness in the recession by expanding the existing assortment of products consumers shop regularly, including health-related items, commodities such as paper towels and laundry soap, groceries and existing perishables. The company is devoting more shelf space to those categories in the hope of getting more frequent store visits from consumers, and it is taking it from apparel, seasonal and home.

Target also will feature its food private labels more prominently including the budget Market Pantry and Archer Farm, which was developed to compete on a quality level with national brands. Target has used Archer Farms to introduce trendy items at lower prices than gourmet brands charge for the latest taste sensations to provide cost-conscious shoppers with an alternative.

Beyond adding new products and displays, Target is upgrading information systems for food, commodities and pharmacy, Steinhafel said. It also will promote them more prominently in store circulars and advertising. In its marketing, Target will wrap commodities and food in with a message about the value it offers. One goal of that advertising is to make a case that Target’s prices are close enough to Wal-Mart’s that it is a viable destination for consumers who like to save money but want a different shopping experience. Getting something like the same number of food shopping visits Wal-Mart enjoys would be a great boost for Target.

 [back to top]


Wal-Mart Incident Investigation Complete

ABC Chanle 9
February 24th, 2009                 
[back to top]

The Tennessee Bureau of Investigation has completed its probe into an incident involving an off-duty Chattanooga Police Officer and a Wal-Mart greeter.

Officer Ralph Kenneth Freeman is back on duty this week after internal affairs gave him the most serious punishment next to firing: 30 days suspension and mandatory anger management classes.

According to an incident report, Freeman and another off-duty officer were exiting the Collegedale Wal-Mart Christmas Eve when Freeman was stopped by a greeter. Surveillance video shows the greeter, 71-year-old Bill Walker, grab Freeman by the arm as he was going through security.The video then shows Freeman shove Walker, who fell 6-feet and landed on the ground.

Not long after video surfaced, the Hamilton County District Attorney's office asked the TBI to investigate.

Tuesday, we received a tip that the investigation is over.

In an e-mail response to our inquiry, TBI spokesperson Kristin Helm writes: "We did finish the investigation and turned the file over to the General Cox to present to the Grand Jury.I need to refer any other inquiries or details about this case to him."

According to Neal Pinkston in the DA's office, a TBI agent testified before the Grand Jury Monday in Freeman's case. Pinkston says the Grand Jury will release its report Wednesday. At that time, the District Attorney's office will find out whether the Grand Jury true billed the case or did not.

The conclusion of the investigation coincides with the end of Freeman's 30 day suspension.

We caught up with the veteran officer downtown on his lunch break today. Freeman won't speak about the specifics of the case, but he does tell us he's happy to be back in his blue uniform and back on patrol.

"It feels good. I'm ready to do my job," Freeman says. "That's what the chief wants me to do, so hey. I've always done my job and I;m going to continue to do my job."

Freeman says he's ready to put this incident behind him and gets back to the streets he's served for 15 years.

When asked if he thinks there can be something positive to come out of a negative situation, Freeman responds: "Always. Like I say, I'm always willing to improve on anything, so yeah, of course."

 [back to top]


Wal-Mart employee dies after clothes rack accident

By Gregory A. Hall ,
Courier-Journal
February 24th, 2009                                 
[back to top] 

A Wal-Mart employee died Monday after a clothes rack that was hanging from a warehouse ceiling fell on his head Saturday at the store off Westport Road.

Sebert Dodge, 65, died Monday afternoon at University Hospital, Jefferson County Deputy Coroner Jack Arnold said.

Dodge had been admitted to University Hospital after the incident occurred between 1 p.m. and 2 p.m. Saturday, Arnold said. The cause of death was blunt force trauma to the head and neck due to the clothes rack falling and striking Dodge in the head, Arnold said.

The Kentucky Division of Occupation Safety and Health Compliance was notified by Wal-Mart and an investigation is underway, state spokesman Dick Brown said in a statement. The agency does not have details of how the accident occurred, Brown said.

No autopsy was done because medical records were sufficient to establish the cause of death, Arnold said.

Based on interviews with family members, Arnold said the rack was suspended from what he called an “S-hook” on the ceiling. The S-hook came loose, allowing the clothes rack to fall, Arnold said.

Wal-Mart spokeswoman Ashley Hardie said the incident is being investigated internally and the facts are still being determined.

“Our thoughts and prayers are with our associate’s family,” she said. “The safety and security of our associates and our customers is always our top priority.”

 [back to top]


Wal-Mart drops Santa Rosa store plan

By Mike McCoy,
THE PRESS DEMOCRAT
February 24th, 2009                   
[back to top]

Wal-Mart is abandoning its five-year effort to build a store in southwest Santa Rosa, say city officials.

The decision is a setback for those who eagerly awaited creation of 300 jobs, the mega-chain's low consumer prices and an estimated $500,000 in annual sales tax revenues for beleaguered City Hall.

But it is a victory for critics who claim the world's largest retailer damages communities by engaging in questionable labor and predatory business practices.

Months after Wal-Mart lost an environmental lawsuit financed by labor and social advocacy groups and neighbors of the proposed Roseland-area project, sources say company representatives have told Santa Rosa officials they do not plan to appeal the judge's decision.

It was unclear Monday whether Wal-Mart's pullout is being shaped primarily by the court's rejection of its environmental impact report, or to the fact that the new council has a majority of members who have opposed Wal-Mart and been critical of big-box retailers. Company officials did not return several phone calls Monday seeking comment.

But the situation poses potential hurdles for another big-box chain, Lowe's, which is planning a home improvement center on Santa Rosa Avenue. Lowe's environmental impact report will be up for review Thursday night by the city Planning Commission.

Councilwoman Jane Bender said Wal-Mart's intention was disclosed several weeks ago at an Economic Development Committee meeting. Other sources said they've also received word the company is giving up its Santa Rosa proposal.

"My guess is it wasn't worth the fight, that they saw there was a huge contention against it," said Bender, among the council's minority of Wal-Mart supporters.

City Attorney Caroline Fowler declined to discuss the Wal-Mart matter, noting that the appeal period has not expired. Conceivably, Wal-Mart could prepare a new envronmental assessment, but it spent five years and several hundred thousand dollars on the current one.

Longtime Roseland resident Margot Piccinini said Monday she's disappointed, particularly since efforts to find other businesses to locate in the half-vacant shopping center at Stony Point and Sebastopol roads have been unsuccessful.

"I don't think the unions have the right to stop something because of the hiring practices and rate of pay Wal-Mart offers," she said.

"With the culture in this area we needed something like Wal-Mart. The Hispanic moms could go to work part-time. Wal-Mart is known for entry level jobs, and it has the prices people out here could afford," she said.

Wal-Mart, which has stores in Windsor and Rohnert Park, has been a lightening rod for debate in Santa Rosa. That intensive opposition is expected to resurface Thursday when the Planning Commission considers approving the environmental study for Lowe's proposal for a 155,000-square-foot outlet at the northeast corner of Santa Rosa and Yolanda avenues.

That 10.5-acre project, two years in the planning stages, is expected to generate 175 jobs, $50 million in annual sales and $500,000 in annual sales tax revenues for the city, said Lowe's spokeswoman Maureen Rich.

Many of the same forces that fought Wal-Mart are gearing up to take on Lowe's, citing its impact on traffic and concerns it would drive locally owned home improvement stores out of business.

The nearest local home improvement competitor, Friedman Brothers, is two miles south on Santa Rosa Avenue. Tax revenue generated by that store goes to the county because it is outside Santa Rosa's city limits.

Mayor Susan Gorin, who along with fellow council members Veronica Jacobi, Gary Wysocky and Marsha Vas Dupre, have voiced opposition to Wal-Mart's corporate model, said Wal-Mart's advantages are outweighed by its disadvantages.

"I'm looking at both the impacts on our community and potential benefits," Gorin said. "Anything of that size and scale has the opportunity to provide jobs and sales tax and we would welcome that," she said.

"But look at Wal-Mart's business model. Does it equal out? What are the salaries they pay, can those with jobs there afford to live in Santa Rosa or must they commute? Will they force others out of business? And their impacts will further congest our streets resulting in the need for more traffic signals, road widening and school crossing guards," she said.

"We as a city are having a hard time providing services, but I'm not sure Wal-Mart is worth it," she said.

As for Lowe's, Gorin said "I haven't heard much other than there are thoughtful people in the community raising objections to their environmental impact report," she said.

Bender, however, called Wal-Mart's decision to leave "a setback."

"When you look at Wal-Marts across the nation they are doing better than other stores. This one would have brought in revenue that everyone knows we need, and it would have been a place for those in Roseland where they could go and shop and at prices they could afford," she said.

The opposition Wal-Mart faced and the city's recent move to impose tougher development standards on big-box stores did not go unnoticed by Lowe's The company mailed more than 12,000 brochures to Santa Rosa homeowners several weeks ago, providing details of what it planned and attached a postcard supporters could return to show their support.

"It was an opportunity to educate residents and inform them of a great opportunity," said Lowe's spokeswoman Maureen Rich. "In this economic climate it's a proposal that will bring jobs, sales tax revenues and increase property tax values, all factors that should be considered by residents," she said.

Among the leading critics of Lowe's is the Accountable Development Coalition, a group of labor, environmental, housing and neighborhood groups. It's chairman and vice chairman are Michael Allen and Nick Caston, both members of the city Planning Commission.

Despite those ties, city attorney Fowler said both can vote on Lowe's "if they believe they can be unbiased."

Allen, president of the North Bay Labor Council, one of the groups that funded the Wal-Mart lawsuit, and Caston both said they plan to vote on the matter.

Caston, who's been on the commission since 2006, said he avoids coalition issues that deal with Santa Rosa planning matters. Allen said he has avoided discussing Lowe's since he was appointed to the commission two months ago.

"I have to make it (decision) independently based on the planning documents and evidence submitted," Allen said.

One source indicated Friedman's is financially assisting those battling the Lowe's project.

Friedman's chief financial officer, David Proctor, however, denied the charge.

"We are obviously very concerned. We think it's a bad move for Santa Rosa," he said. While his company has hired local political consultant Herb Williams to monitor Lowe's planning progress, Proctor said "We are not funding any oppositional element of an anti-Lowe's group."

 [back to top]


Wal-Mart makes follow-on offer for D&S

Associated Press,
02.23.09                                      
[back to top]

A subsidiary of Wal-Mart Stores Inc. on Monday made a follow-on tender offer to buy the outstanding shares of Chilean retail company Distribucion y Servicio D&S SA.

Wal-Mart's operating unit, Inversiones Australes Tres Limitada, offered 40.8 cents for each share of common stock and $24.48 for each American Depository Share.

An initial tender offer was completed Jan. 25 and gave Wal-Mart about 58.3 percent of the company's shares. Another 40.1 percent of the outstanding shares are owned by Felipe and Nicolas Ibanez Scott, sons of the founder Manuel Ibanez Ojeda. Wal-Mart said in January that the brothers would stay involved in the business.

Wal-Mart is the world's biggest retailer.

Its shares fell 72 cents to $49.28 in afternoon trading.

Copyright 2008 Associated Press. All rights reserved

 [back to top]


Wal-Mart settles suit that charged bias in hiring

By Robert Daniel,
MarketWatch
February 22nd, 2009                   
[back to top]

Under the terms of the agreement, reached with attorneys for the plaintiffs in a class-action lawsuit pending in U.S. District Court for the Eastern District of Arkansas, Wal-Mart agreed to pay $17.5 million. In addition, the company's logistics division agreed to give priority to placing 23 of the class members in positions with the company; provide direct notice to all class members about future job opportunities; set goals so that future hiring is proportionate to the racial composition of the applicants; name a diversity recruiter; and boost job recruiting and advertising targeted at African-Americans. In the settlement, "Wal-Mart denied that it engaged in any policy or pattern or practice of unlawful discrimination or other unlawful conduct," the company, based in Bentonville, Ark., said in a statement late on Friday. "Encouraging diversity is an important part of the hiring process for all areas of our company," a spokeswoman said in the statement, adding that within the transport division the company is improving its personnel-recruitment and -selection systems. The settlement is subject to court approval.

 [back to top]


Kin of Wal-Mart stampede victim to sue NY county

Associated Press,
02.20.09                              
[back to top]

Relatives of a worker trampled to death in a crush of post-Thanksgiving bargain-hunters at a New York Wal-Mart have filed court papers indicating they intend to sue Nassau County and its police department.

A notice of claim - the first step toward suing a municipality - was filed Tuesday in state Supreme Court. It claims the Long Island county and police were negligent, careless and reckless before the Nov. 28 stampede in Valley Stream that killed Jdimytai "Jimmy" Damour (jim-mee-TREE' Di-MOHR').

Nassau County Attorney Lorna Goodman says the claims have no merit.

The family's lawsuit against Wal-Mart Stores Inc. (nyse: WMT - news - people ) and others was dropped after the relatives changed lawyers but they say they will refile it.

Copyright 2008 Associated Press. All rights reserved.

 [back to top]


Mexico's Walmex aims for expansion amid slump

By Cyntia Barrera Diaz,
Reuters
February 19th, 2009                      
[back to top]

MEXICO CITY, Feb 19 (Reuters) - Mexican retailer Wal-Mart de Mexico set an aggressive expansion plan for 2009, focusing on low prices for staples like perishables and pharmacy products, to boost market share amid an economic slowdown.

Also known as Walmex (WALMEXV.MX), Mexico's leading supermarket chain plans to open 252 stores this year and invest 11.8 billion pesos in the expansion, Chief Executive Eduardo Solorzano told analysts during a webcast on Thursday.

Walmex's expansion will account for more than half of all the units that parent Wal-Mart Stores Inc (WMT.N) plans to open across the Americas region, which excludes the United States.

Last year, Walmex ended with 182 new units, 23 fewer than its original plan, as the company faced its most challenging year due to slowing consumption as well as high inflation and rising energy costs.

Solorzano said that in order to increase customer traffic, Walmex will strengthen efforts in pricing, inventories, real estate, and distribution.

By offering low prices on food, household care, entertainment and drugs, Walmex will fend off competitors, particularly closest rival Soriana (SORIANAB.MX).

Most of the store openings will be of the Bodega Aurrera and Bodega Express formats, which focus on the low income segment, while the struggling Vips restaurant chain will be put on the back burner.

Asked whether the financial crisis could encourage people to shop more at "mom and pop" stores and other informal commerce, Solorzano told investors, "There is no indication the market is moving in that direction."

The company will also try to revive its Suburbia clothing store chain, which has been hit hard by the crisis, and reinforce its banking operation, which had a slower start than expected.

To cut more costs, Walmex -- one of the biggest employers in Mexico with a staff of 170,000 -- will also seek to renegotiate rent terms of several of its stores.

Solorzano said during a later press conference in Mexico City that the company was not eyeing any purchases and that it has not approached troubled rival Comercial Mexicana (COMEUBC.MX), mauled by huge debt problems, as an acquisition target.

Walmex shares fell 0.75 percent to close at 29.30 pesos on Thursday.

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Wal-Mart Settles South Carolina Wage, Hour Suit

By Lana F. Flowers,
THE MORNING NEWS
February 19th, 2009                 
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SPRINGDALE -- South Carolina Walmart workers who claim they were not paid for time worked will get $49 million to settle a class action lawsuit.

Wal-Mart Stores Inc. announced the settlement Thursday morning on its Web site, walmartstores.com.

Wal-Mart's announcement came after Judge Perry M. Buckner III in Colleton County, S.C., approved the settlement on Tuesday.

The settlement will conclude more than six years of litigation concerning Wal-Mart's employment practices in South Carolina.

Wal-Mart in the settlement agreed to maintain electronic systems, surveys and notices to protect workers' rights.

"We are pleased with the preliminary approval of the settlement by the court. We hope that Wal-Mart's industry leading compliance model will set an example for the retail industry," plaintiff's attorney Brad Hutto of Williams & Williams in Orangeburg, S.C., said in a news release.

A woman who answered the phone in Hutto's law office in Orangeburg, S.C., said Hutto was on the state Senate floor and could not be reached. Besides being an attorney, Hutto also is a Democrat in the South Carolina Senate.

The woman said she would relay a message to return a phone call. Hutto did not return the call as of 3 p.m. Thursday.

"This lawsuit was filed years ago and the allegations are not representative of the company we are today," said Daphne Moore, Wal-Mart spokesperson.

Five of the lawsuits date to 2000, with the more recent cases filed in 2005 through 2007.

"Our policy is to pay associates for every hour worked and to make rest and meal breaks available," Moore said. Wal-Mart calls its employees associates.

Moore did not know how many Walmart employees and former employees would get money from the $49 million settlement.

Wal-Mart announced late Dec. 23 it was settling 63 of 73 pending wage and hour class action lawsuits nationwide. The South Carolina lawsuit is included in the 63 suits the retailer previously announced it would settle.

The settlements were pending court approval, but could cost up to $640 million. Moore said the $49 million settlement in the South Carolina lawsuit is included in the previously announced total settlement amount.

Wal-Mart recorded an after-tax charge of approximately $255 million, or six cents per share, in the fourth quarter related to the lawsuit settlements.

Wal-Mart (NYSE: WMT) closed Thursday at $50.45, up 45 cents. The share price ranged from a $63.85 high to a $46.25 low in the past 52 weeks.

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Northwest Health To Reopen Walmart Clinics

By Lana F. Flowers,
The Morning News
February 19th, 2009                  
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SPRINGDALE -- Northwest Health System will open walk-in health clinics in former RediClinic spaces in two Northwest Arkansas Walmarts.

The health care system and Bentonville-based Wal-Mart Stores Inc. announced the CareExpress openings late Thursday morning.

Northwest Health will open its CareExpress clinic at 8 a.m. Monday in the Walmart Supercenter at 4208 Pleasant Crossing Blvd., near the intersection of Pleasant Grove Road and Interstate 540 in Rogers.

Dr. Martin A. Hannon, a family medicine physician who practices at Northwest Family Medicine in Tuscany Square, across Pleasant Grove Road from Walmart, will oversee the Pleasant Grove CareExpress.

A CareExpress will open another clinic in the Walmart Supercenter at 3919 North Mall Ave. in Fayetteville in the coming weeks.

Dr. John D. Gaston, a family medicine physician who practices at Northwest Family Care in Fayetteville, will oversee the Fayetteville CareExpress.

Both spaces used to have RediClinic walk-in medical clinics that closed Dec. 16.

The closed RediClinics did not get enough patient appointments or make enough money to stay open, Katie Brazel, a RediClinic spokeswoman, previously said.

The two CareExpress locations will have a total of 10 employees, which are new positions. Most of those positions have been filled, said Greg Russell, Northwest Health System spokesman.

Russell did not have a wage range for the CareExpress jobs, but said filling the RediClinic spaces fills a community need.

"We already operate a network of primary care and specialty clinics and thought this was an opportunity to give people a couple of more access points," Russell said.

CareExpress employees -- including advanced nurse practitioners who work for Northwest Health System physicians -- will give immunizations, conduct health screenings and tend to minor injuries in the store clinics.

No appointments are necessary and CareExpress patients can pay cash or file insurance claims for services.

CareExpress is leasing the former RediClinic spaces but Russell declined to reveal costs. Wal-Mart renovated the spaces for CareExpress, Russell said, though he was not sure if renovation costs were included in leasing costs.

The CareExpress clinics will be open nights and weekends, helping ease traffic at Northwest Health Systems emergency departments, including those at Northwest Medical Center in Bentonville and Northwest Medical Center in Springdale.

Emergency rooms "aren't really the most convenient, most appropriate or most cost-effective place -- for patients or health professionals -- to treat everyday illnesses like sore throats," said Doug Arnold, chief executive officer of Northwest Health System.

Operators of Walmart-based medical clinics conducted an exit survey of 14,479 walk-in clinic patients between January 2006 and November 2006. The survey revealed 10 percent to 15 percent of clinic customers would have used an emergency room if the Walmart-based clinic wasn't available.

Another 5 percent to 10 percent would have gone without treatment entirely, Walmart said in a news release.

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Wal-Mart workers in Missouri cash in

By Dan Margolies,
Kansas City Star
Feb. 19, 2009                        
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Wal-Mart workers in Missouri will get $55.53 million or more under a settlement approved last week as part of a nationwide resolution of overtime claims against the company.

The Missouri portion of the settlement affects as many as 330,000 former and current hourly employees who worked at a Wal-Mart Store, Wal-Mart Supercenter or Sam’s Club store in Missouri between Aug. 15, 1996, and Jan. 2 of this year.

The settlement, which received preliminary approval from Jackson County Circuit Judge Sandra Midkiff on Feb. 11, resolves a long-running lawsuit alleging the retail giant forced workers to work through rest and meal breaks. The lawsuit in Jackson County was one of scores ofsuch actions nationwide seeking damages from Wal-Mart for wage and hour violations.

Eligible Wal-Mart workers will receive notification of the settlement at their last known address.

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Residents rise against complexes

Impact reports criticized for 'faulty' findings

By BOB WILSON
Antelope Valley Press
Thursday, February 19, 2009                   
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LANCASTER - More than two dozen people rose Wednesday to criticize conclusions reached in a pair of reports describing the expected environmental impacts of two shopping centers planned near Quartz Hill High School. Of approximately 60 people present, three rose during the first 90 minutes of a public hearing held by the city's Planning Commission to praise the predicted effects the projects will have on west Lancaster.

Among the criticisms was that the environmental impact reports, prepared by the Christopher A. Joseph & Associates firm of West Los Angeles, incorrectly concluded there would be enough water and drainage for the projects; erred in the amount of traffic, noise and pollution the projects would generate; erred in projections concerning housing development and tax generation; and failed to take into account the potential reduction in public safety.

Those supporting the conclusions in the environmental impact reports cited expected improvements to the water drainage, a reduction in air pollution from shorter shopping trips and increased revenue for public safety.

"Forty-five weeks would not be enough time" to describe the flaws in the reports, much less the 45 days granted, said Loretta Berry, who helped organize Quartz Hill Cares, a grass-roots citizens group opposed to the projects.

The $1.2 million tax boost the city is expecting from the projects "is based on a false premise," Berry said, reading through a list of empty stores she said will multiply if new discount stores are built.

Future homes the new stores are expected to serve may never be built, older stores already serving the area will be forced out of business, and the revenue generated by the new stores will reflect only a redistribution of money already being spent at their counterparts, Berry said.

"The city, especially the west side, cannot sustain any more shopping centers," she said.

Instead of bringing improvements, the new centers will bring increased economic blight, Berry said.

Speaking on behalf of Lancaster businessman Marvin Crist, who was not present, former Antelope Valley College basketball coach Newton Chellete said the two shopping centers would improve traffic flow in the area and generate "millions of dollars of new revenue for Lancaster, which will pay for enhanced law enforcement and public safety services, which would benefit westside residents."

Both the Quartz Hill Town Council and the town's Chamber of Commerce have taken formal positions opposing development of the two shopping centers.

Of the Planning Commission's seven members, all were present except for Chairman James Vose.

Comments on the reports, done in preparation for the planned construction of a 40-acre shopping center on the northwest corner and a 35-acre shopping center on the southeast corner of Avenue L and 60th Street West, will be accepted until the close of business Monday at City Hall.

The project on the northwest corner would be anchored by a new Wal-Mart - Lancaster's third and the Antelope Valley's fifth - and the project on the southeast corner would be anchored by a new Target - Lancaster's second and the Antelope Valley's fourth.

Brian Ludicke, Lancaster's director of planning, estimated it would be at least two months before the issues raised at Wednesday's hearing can be addressed and entered into final versions of the reports.

Those reports will address, among other things, the expected effects of shopping-center construction on animals and plants, the water supply, air quality, neighboring properties, traffic, noise, light pollution and public safety.

For construction of the centers to proceed, the Lancaster City Council must approve the two final EIRs, change the designations for the use of the properties under the city's General Plan and zoning ordinance and approve conditional-use permits for the projects.

When those matters come before the city Planning Commission and City Council, residents will be asked to voice opinions on the overall drawbacks or benefits of the projects.

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Walmex to invest $805 million, open 252 stores

By OLGA R. RODRIGUEZ,
02.19.09                                      
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Wal-Mart de Mexico SA said Thursday it will invest 11.8 billion pesos ($805 million) and open 252 new stores in 2009 despite the slowing Mexican economy.

The investment represents a 4 percent increase compared to last year and will create 14,500 new direct jobs, said Walmex Chief Executive Officer Eduardo Solorzano.

Solorzano said the growth plan for Walmex, the Mexican unit of Arkansas-based Wal-Mart Stores Inc. (nyse: WMT - news - people ), is possible thanks to the company's commercial aggressiveness and strict spending.

"We've always been aggressive in the commercial part and more conservative on the financial one and this is how we will continue to manage the company," he said.

Mexico has been battered by the recession in the United States, which buys 80 percent of the goods it sells abroad. Mexico's growth slowed to 1.5 percent in 2008 from 3.3 percent the year before, as consumer credit tightened and money sent home by migrants fell.

To combat the downturn, Walmex plans to offer low prices on some 1,700 items as a way to attract more customers, Solorzano said.

The company's sales grew 11 percent last year to 244.9 billion pesos ($17.9 billion) and net profit rose 5 percent to 14.7 billion pesos ($1 billion).

Comment On This Story

Walmex's shares traded on the Mexican Stock Exchange fell 0.7 percent to close at 29.30 pesos ($2 dollars) Thursday.

Walmex is Mexico's largest retailer and private-sector employer, with more than 170,000 workers at 1,205 supermarkets, restaurants, clothing stores and retail chains.

Copyright 2008 Associated Press. All rights reserved.

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Wal-Mart profit beats Wall St view

By Nicole Maestri,
Reuters
February 17th, 2009                      
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NEW YORK (Reuters) - Wal-Mart Stores Inc posted a profit that beat Wall Street forecasts, fueled by sales at its namesake U.S. discount stores, and said it expects to outperform rivals as a global downturn forces shoppers to seek low prices.

Shares in the world's largest retailer rose 3 percent on the results, as investors shrugged off fears of a deeper global recession that prompted stock declines in the wider U.S. market.

"They kind of did everything right," said Joseph Feldman, a retail analyst with Telsey Advisory Group. "They're going to start buying back stock, they continue to control inventory well, February is off to a good start, and guidance for next year is as good as you could have hoped."

Wal-Mart said U.S. sales rose 6 percent in the quarter as it attracted more shoppers trying to save money. International sales slid 8.4 percent due to a stronger U.S. dollar, while sales at its Sam's Club warehouse clubs were flat.

Wal-Mart's sales have been outpacing direct competitors like Target Corp and Costco as well as lower-priced department stores like J.C. Penney in recent months as consumers stretch limited budgets by shopping in its stores for necessities like food and medicine.

"Our performance relative to competitors was exceptionally strong in the fourth quarter and throughout the year," Chief Executive Mike Duke said in a statement. "We expect this momentum to continue."

Profit fell to $3.79 billion, or 96 cents per share, for its fiscal fourth quarter, ended January 31, from $4.096 billion, or $1.02 share, a year ago.

Excluding a 7 cent charge per share for the settlement of class-action lawsuits, earnings came to $1.03 per share. Analysts, on average, had expected the company to earn 99 cents per share, according to Reuters Estimates.

Chief Financial Officer Tom Schoewe said in an interview that strong U.S. sales in January and a lower tax rate contributed to the better-than-expected results.

SAM WALTON'S TIME

To win business during the fourth quarter, which included the crucial holiday sales season, Wal-Mart said it spent more on advertising to tout its low prices.

"These guys are gaining share and doing much better than their competitors," said Christian Andreach, a managing director at money management firm Manning & Napier Advisors. "Even in the discount channel, they're doing very well."

Quarterly net sales rose 1.7 percent to $108 billion.

Sales at U.S. stores open at least a year rose 2.8 percent overall, with increases of 2.8 percent at the company's namesake stores and 2.5 percent at the Sam's Club division.

"The business model that Sam Walton created is perfectly positioned for the environment we live in now," Duke said, referring to the company's founder. "I do believe this is Wal-Mart's time."

Duke said that after a strong performance in January, business in February was off to a good start.

Wal-Mart U.S. CEO Eduardo Castro-Wright said on the call that families are eating at home more often, spurring demand for groceries as well as items used for home cooking and entertaining.

At its Sam's Club stores, sales of big ticket items, like furniture and jewelry, remain under pressure, the company said.

'WAY MORE DIFFICULT' TO FORECAST

Wal-Mart said it will keep a close eye on expenses so it can continue to try to keep its prices lower than rivals.

Schoewe now expects capital expenditures for the current fiscal year in a range of $12.5 billion to $13.5 billion, down from an earlier view of $13 billion to $14.5 billion.

The retailer also said that while it stopped buying back shares in the fourth quarter, it believes it is "appropriate" to resume those purchases.

Schoewe said it is "way more difficult" now than at any time he can remember to provide earnings forecasts, given the uncertain economic climate.

For the first quarter, Wal-Mart forecast earnings of 72 to 77 cents per share, with full-year earnings of $3.45 to $3.60. Analysts had forecast 77 cents per share for the first quarter and $3.57 for the year.

Wal-Mart said its forecast assumes currency exchange rates will hurt full-year results by about 13 cents per share.

Wal-Mart shares rose 3 percent, or $1.39 to $47.92 in late morning trading.

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Wal-Mart's 4Q earnings decline 7 percent

Associated Press,
02.17.09                                     
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Wal-Mart Stores Inc. says its fourth-quarter profit has fallen 7 percent.

The world's largest retailer saw its results hurt by the strong dollar and a charge that stemmed from settling a labor lawsuit. The company also said Tuesday that first-quarter earnings could miss Wall Street expectations.

The company posted earnings of $3.79 billion, or 96 cents per share in the quarter ended Jan. 31. That compares with $4.096 billion, or $1.02 per share a year earlier. Analysts surveyed by Thomson Reuters had expected earnings of 99 cents per share, excluding the lawsuit settlement.

Total sales came to $109.12 billion, up from $107.34 billion a year earlier. Analysts surveyed by Thomson Reuters expected $109.1 billion

Copyright 2008 Associated Press. All rights reserved.

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Wal-Mart Opens Wallets

Lisa LaMotta,
02.17.09                                
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World's largest retailer benefits during recession by offering lower prices than its competitors. Wal-Mart Stores, Inc. 02/24/2009 1:45PM ET$50.07$1.192.43%

Sam Walton would be proud: Wal-Mart, the store he founded, is now beating out competitors, thriving in a down economy and excelling in customer service.

Retailers of all kinds have been struggling as the economy has deteriorated, but Wal-Mart's strong appeal to the frugal-minded shopper has kept it afloat, even though results have been negatively affected by the strong dollar and weak consumer spending trends.

Wal-Mart got a boost last year from shoppers flocking to the less-pricey retailer for necessity shopping, but now it said it expects a hit of 13 cents per share for the fiscal year due to currency headwinds.

"Comparing our absolute results to the prior year is going to be difficult in food because we had inflation during that time period, and we're going through kind of disinflation as we sit here today," said Wal-Mart Chief Financial Officer Tom Schoewe to Thomson Reuters. "But the other grocers are going through the same thing -- so [the ultimate question ought to be: How is our relative performance?]"

The company has been outpacing competitors like Target and Costco, as well as other grocers and department stores.

Shares of Wal-Mart Stores (nyse: WMT - news - people ) were up late in the trading day Tuesday, adding $1.69 cents, or 3.7% to $48.22.

"Wal-Mart recorded the strongest sales result in its history in the fourth quarter, with $108 billion in sales," said Chief Executive Mike Duke. "We achieved this through the hard work of our associates, helping our customers save money so they can live better."

Comment On This Story

The retailer reported earnings of $3.8 billion, or 96 cents per share. This was above its previous guidance of 91 cents to 94 cents per share. Adjusting for a charge related to a class-action lawsuit, the company earned $1.03 per share. Revenues were up slightly, to $108.0 billion. Analysts surveyed by Thomson Reuters expected, on average, earnings of 99 cents per share on revenues of $109.1 billion for the fourth quarter.

"Our performance relative to competitors was exceptionally strong in the fourth quarter and throughout the year," Duke observed. "We expect this momentum to continue."

The company expects reported earnings in the range of 72 cents to 77 cents per share for the first quarter of fiscal year 2010, and between $3.45 and $3.60 per share for the full year. Analysts expect earnings of $3.59.

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Wal-Mart Can't Lift Wall Street

Steve Schaefer,
02.17.09                                 
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Retailer posts solid Q4 earnings but the broader market slumps on economic worries. Wal-Mart Stores, Inc. 02/24/2009 1:31PM ET$49.97$1.092.23%

Maybe Wall Street could have used a four-day weekend. After U.S. markets closed Monday for Presidents Day, trading resumed with massive losses Tuesday.

The major averages broke through key support levels as investors cast a skeptical eye toward the government's stimulus package and bank bailout plan. President Obama was set to sign the $787.0 stimulus bill into law in Denver Tuesday, and announce a comprehensive foreclosure mitigation plan on Wednesday. Meanwhile, Wall Street is waiting for further details of a public-private partnership outlined by Treasury Secretary Tim Geithner that would try to rid bank balance sheets of toxic mortgage-backed securities.

Financial stocks were among the morning's biggest losers, with the SPDR KBW Bank (nyse: KBE - news - people )exchange-traded fund, which corresponds to a closely watched industry gauge, down 92 cents, or 7.1%, to $12.10. The Dow Jones industrial average slid 259 points, or 3.3%, to 7,591; the S&P 500 lost 32 points, or 3.9%, to 794; and the Nasdaq fell 57 points, or 3.7%, to 1,478.

Prices on Treasury securities leaped as investors fled the equity market, dropping the yield on the 10-year T-note to 2.69%, from 2.88% Friday. The iShares Barclays 10-20 Year Treasury Bond (nyse: TLH - news - people ) ETF, which tracks a range of longer maturities, gained $2.33, or 2.1%, to $115.37.

Wal-Mart (nyse: WMT - news - people ) showed the lone gain among the Dow's 30 components, after reporting fourth-quarter results that narrowly beat expectations. The discount retailer has been able to lap many of its competitors as consumers tighten purse strings, but it has hardly been immune to the economic downturn. Wal-Mart's guidance for its present quarter and fiscal year came in near the lower end of the Street's estimate, but investors still sent shares up $1.48, or 3.2%, to $48.01. (See "Wal-Mart Workin' The Discount Angle.")

Detroit's automakers were back in the spotlight, with General Motors (nyse: GM - news - people ) and Chrysler due to file restructuring plans with the Treasury Department later Tuesday. The deadline is a checkpoint imposed by the government when it lent the pair $13.4 billion and demanded they demonstrate their viability by the end of March. If the Treasury approves of what it sees Tuesday, GM is in line for another $4.0 billion and Chrysler would receive $3.0 billion. GM shares were down 27 cents, or 10.8%, to $2.23. (See "Who's Driving Detroit?")

Sirius XM Radio (nasdaq: SIRI - news - people ) got an eleventh-hour reprieve from Liberty Media (nasdaq: LCAPA - news - people ), after the company run by John Malone agreed to loan the satellite radio operator $530.0 million in return for board seats and an equity stake. Liberty's investment allows Sirius to pay off $171.6 million in maturing debt. Sirius shares jumped 60.9%, climbing 6 cents, to 17 cents apiece.

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America's Most Popular Stores

Jeanine Poggi,
Shopping
02.17.09                            
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Consumers may be spending less, but they're having better shopping experiences.

The economy is still in its downward spiral: The National Retail Federation predicts a 2.5% decline in sales during the first half of 2009. In other words, consumers are holding on to their money. But those who are willing to spend at least some are more satisfied with retailers than they were several months ago.

Among department and discount stores, Nordstrom and Kohl's lead the pack when it comes to shopper approval.

After a year and a half of plunging numbers, the American Customer Satisfaction Index (ACSI), a national economic indicator of the quality of products and services in the U.S., climbed 0.9% to 75.7 on the 100-point scale in the fourth quarter of 2008, compared with the same period on 2007. The index surveys about 19,000 consumers quarterly on their preferences in the retail, finance, insurance and e-commerce industries.

Consumers may be happier with their shopping experiences, but unfortunately, the rise in satisfaction does not necessarily indicate that an economic turnaround is on the horizon. While an uptick in the ACSI in 2001 signaled a rebound in the economy was nearing, the current recession is not following the same patterns as earlier economic slowdowns, experts say.

"Consumer spending has continued to weaken, while savings have increased, suggesting at least for the short term, there will be less revenue for sellers and more pressure on profit margins and for cost reductions," says professor Claes Fornell, head of the ACSI and author of The Satisfied Customer: Winners and Losers in the Battle for Buyer Preference.

Competition for Customers Customer satisfaction in the retail sector, which includes department and discount stores, specialty retail stores, supermarkets, gas stations and health and personal care stores, gained 1.3% to 75.2. This growth was predominantly based on an improvement in customer service, Fornell says.

"As the economy slumps, more pressure is on retailers to make a sale, [which] forces them to pay attention to customer experience."

Comment On This Story

The department and discount stores and specialty retail categories each jumped 1.3% in their ASCI ratings, to 74 and 76, respectively.

Nordstrom retained its score of 80 on the ACSI based on its strength in customer service, while Kohl's rose 1.3% to also reach 80. Kohl's is known for offering brand-name items and exclusive merchandise at value prices.

Trading Down Discount store Dollar General plunged 3.8% to a rating of 75. But the store's poor mark was not attributed to declining customer service, quality or availability of merchandise. It was a result of changing demographics, Fornell says.

After hitting an all-time low last year, retail giant Wal-Mart made the biggest leap, soaring 2.9% to a score of 70. But the retailer posted mixed results in its individual categories, sliding 4%to 68 for its supermarket business, well below the industry average, but rising 3% for its non-grocery business, to 70.

The reason Wal-Mart appears so low in the index, despite its current financial success, is because it is a pure price competitor, Fornell says.

"This proves price is not the leading indicator of customer satisfaction. Consumers are much happier when they purchase an item they really want and have a good experience doing so."

ASCI's Effect While several retailers have seen falling stock prices over the past year, those that improved customer satisfaction were more favorably received by investors. On average, retailers with improving ACSI scores lost about 30% of their market value in 2008, while those with declining ACSI scores lost about 57%. By comparison, the S&P 500 index dropped 38%.

But even with increasing levels of customer satisfaction, most retailers are facing a gloomy future. Sales during the holiday season were dismal, as retail industry sales for December dropped 2.2%, according to the National Retail Federation. Drastic discounting was the only thing that prevented consumer demand from falling to an unprecedented low, Fornell says.

"For consumer spending to rebound, two conditions must be met: Consumers must be favorably disposed to spend and have the means to spend," Fornell says. "The good news from ACSI is that the first condition has been met--customer satisfaction is looking up. But it remains to be seen to what extent the government stimulus plan will help translate stronger satisfaction into increased consumer demand."

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NRC acts after Wal-mart loses radioactive signs

By CHUCK BARTELS ,
Associated Press
02.17.09                                     
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Dozens of businesses, government agencies and schools nationwide are counting exit signs that contain a mildly radioactive compound and are to report any losses to federal regulators after Wal-Mart Stores Inc. said it could not find 15,000 of the signs.

At issue are glow-in-the-dark signs that contain tritium, a hydrogen isotope with a radioactive strength similar to that of material in many smoke alarms.

The Nuclear Regulatory Commission has not told any organization to stop using the signs, which it says are "inherently safe." And no special license or worker training is required to handle them.

But disregarding federal rules for disposing of the signs can lead to an expensive cleanup later because "a damaged or broken sign could cause minor radioactive contamination of the immediate vicinity," according to a fact sheet on the NRC Web site.

The NRC says tritium emits "low-energy beta radiation that cannot penetrate a sheet of paper or clothing. If inhaled, it leaves the body relatively quickly."

Wal-Mart (nyse: WMT - news - people ) spokeswoman Daphne Moore said the signs were used in about 4,500 Wal-Mart facilities in the U.S. and Puerto Rico. Wal-Mart bought the missing ones between 2000 and 2007, when it built or remodeled thousands of Wal-Mart, Sam's Club and Neighborhood Market stores in the U.S.

The NRC said Wal-Mart bought 70,000 of the signs in all.

Comment On This Story

The agency asked 61 entities from the Church of Jesus Christ of Latter Day Saints in Salt Lake City to the Outrigger Hotel in Honolulu - any buyer of more than 500 signs - to inventory them and report whether any could not be accounted for, according to the release.

Related Stories Layoff Tracker MetaData: Steve Ballmer Is Insane America's New Frugality Wal-Mart Has Its Day Unemployment Surges; Pleasant Surprises In Retail Related Videos Global Shares Under Pressure CIO Vs. CFO Autoworker Concessions Street Awaits Mortgage Plan Winds Of Change StoriesVideos "Wal-Mart's inability to account for all the tritium exit signs the company purchased demonstrates that organizations may not be fully aware of the regulatory requirements for owning these signs," said George Pangburn, NRC deputy director for Federal and State Materials and Environmental Management Programs.

The world's largest retailer said Tuesday it has checked all of its U.S. stores and removed any signs it found.

"We assembled a staff, that included contractors, and went to each store and club in the U.S. and Puerto Rico," Moore said. "The program was a complete inventory and removal and replacement."

The team talked to staff, reviewed documents and signs on hand, she said, adding that the same team removed the signs. She said the signs were disposed of according to proper procedures.

She also said, however, that the missing signs may have been installed in an "unexpected location." Or they may have been disposed of before the company began its organized removal of the signs.

Wal-Mart said it has replaced the signs with other non-radioactive notices that can be seen in the dark.

Included in the list of groups named by the NRC are retailers, such as Home Depot (nyse: HD - news - people ), and federal operations, such as the General Services Administration and the Smithsonian Institution. Also included are other businesses, state government entities, universities and school districts.

The NRC gave organizations 60 days to respond to its request for an accounting of the signs, information on how they have been handled and explanations of any discrepancies with the agency's records.

"They are also subject to NRC or state inspection and enforcement action (including fines) for violating ... requirements," the NRC said.

Copyright 2008 Associated Press. All rights reserved

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Microsoft to Open Stores, Hires Retail Hand

By NICK WINGFIELD,
The Wall Street Journal
February 13th, 2009

Microsoft Corp. said it hired a former Wal-Mart Stores Inc. executive to help the company open its own retail stores, a strategy shift that borrows from the playbook of rival Apple Inc.

The Redmond, Wash., company said it hired David Porter, most recently the head of world-wide product distribution at DreamWorks Animation SKG, as corporate vice president of retail stores for Microsoft.

In a statement, Microsoft said the first priority of Mr. Porter, who is also a 25-year veteran of Wal-Mart, will be to define where to place the Microsoft stores and when to open them. A Microsoft spokesman said the company's current plans are for a "small number" of stores.

It remains to be seen whether the effort can add some pizzazz to Microsoft's unfashionable image, which Apple has sought to reinforce with ads that mock its competitor. Mr. Porter, in a statement, said there are "tremendous opportunities" for Microsoft to create a "world-class shopping experience" for the company's customers.

"The purpose of opening these stores is to create deeper engagement with consumers and continue to learn firsthand about what they want and how they buy," Microsoft said in a statement.

The move is a sign of the deeper role consumer-technology companies are playing in the retail business, despite the many risks of straying from their traditional businesses of making hardware and software. Apple, of Cupertino, Calif., encountered widespread skepticism when it first began opening its own retail stores in 2001.

Eight years later, though, Apple's chain of more than 200 stores around the world are widely credited with helping the company boost sales of its Mac, iPod and iPhone product lines. The Apple stores, with their eye-catching architecture, highly-trained sales staff and "genius bars" that provide technical support, gave Apple a way to showcase its products in an environment where they weren't lumped in with a gamut of other electronics items. Sony Corp. and Bose Corp. also operate their own stores.

At the same time, some large electronics retailers have fallen on hard times amidst the weakening economy. CompUSA Inc. last year closed most of its retail stores, while Circuit City Stores Inc. is in the process of shutting down all of its stores and laying off more than 30,000 employees.

 


Wal-Mart will close Macon center

By Michael E. Kanell,
Atlanta Journal Constitution
February 13th, 2009                           
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Wal-Mart has confirmed that it plans to shut its return center in Macon, idling 399 workers.

The facility will close in mid-September, said Dan Fogleman, Wal-Mart spokesman.

In accordance with plant closing law, Wal-Mart on Thursday filed its plans with the state Labor Department.

The center handles items that are returned, defective, recalled or overstocked. The goods are then sent back to suppliers, recycled or donated.

One of six such facilities in the country, the Macon center serves Wal-Mart stores throughout the Southeast. But there is more work than the center can handle, Fogleman said.

“The building can’t operate at the capacity that we need it to, to serve the Southeast.”

The work will go to “a third party” contractor in Spartanburg, S.C.

Laid-off workers will have a chance to look for jobs elsewhere in the company, Fogleman said. Georgia has 134 Wal-Mart stores, 22 Sam’s Clubs and six district centers.

The company employs 54,280 people in Georgia.

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Wal-Mart names Gearhart top counsel

Associated Press,
02.13.09                                  
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Wal-Mart Stores Inc. has promoted Jeff Gearhart to general counsel and named former counsel Tom Mars as chief administrative officer.

The world's largest retailer said Friday that Gearhart will oversee all legal matters for the company's domestic and international divisions.

Mars will serve in a new position to oversee compliance, and aspects of the company's human resources department, including diversity, compensation, talent development and employment practices and policies.

Mars had served as personal counsel to Mike Huckabee for part of Huckabee's tenure as Arkansas governor. Huckabee appointed Mars to run the Arkansas State Police from 1998 through 2001.

Mars and Gearhart will each also carry the title of executive vice president.

Copyright 2008 Associated Press. All rights reserved

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Wal-Mart Stores promotes Tom Mars to CAO position

Associated Press,
02.13.09                             
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Wal-Mart Stores Inc., the world's largest retailer, said Friday that Tom Mars will move into the newly created role of executive vice president and chief administrative officer of Wal-Mart U.S.

Mars, 51, will handle human resources operations for the division as well as oversee the compliance department.

Mars, previously general counsel of Wal-Mart Stores (nyse: WMT - news - people ), will be succeeded in that role by Jeff Gearhart, who also will become an executive vice president.

Gearhart, 44, will lead the department that handles all legal matters affecting Wal-Mart's domestic and international markets. He previously served as vice president and general counsel of the company's corporate unit and most recently served as senior vice president and deputy general counsel for Wal-Mart Stores.

Wal-Mart said this week that it will cut 700 to 800 jobs at its northwestern Arkansas headquarters as it builds fewer new stores this year and makes other operational changes. The company plans to add jobs at its New York apparel office and expects "to add thousands of jobs" at Wal-Mart stores and Sam's Club warehouses this year - including hires at new stores.

In July 2001, the company laid off 100 workers at its headquarters and kept 300 positions unfilled, which Wal-Mart attributed to economic conditions after a review of its home office operations. Last year, it cut positions in the apparel office.

In recent weeks, retailers and manufacturers including Macy's Inc. (nyse: M - news - people ), Bon-Ton Inc. and Liz Claiborne Inc. (nyse: LIZ - news - people ) have announced job cuts and other cost-cutting measures as they aim to preserve cash in the wake of a sharp pullback in consumer spending.

Comment On This Story

Wal-Mart was one of only a handful of merchants reporting a sales gain in January, while most suffered deep declines. The overall industry sales decline marked the fourth consecutive drop in sales from one month to the next since October.

Copyright 2008 Associated Press. All rights reserved

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Police identify man killed in Wal-Mart shopping cart stabbing

By Mary Manning,
Las Vegas Sun
February 12th, 2009                      
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Authorities today identified a man who died from stabbing wounds he received during a dispute with another man about a shopping cart striking a vehicle Wednesday afternoon in a Walmart parking lot.

Oscar Hernandez, 24, Henderson, was taken to Sunrise Hospital and Medical Center's Trauma Unit, where he was pronounced dead a short time later, Metro police said. Officers said Hernandez had been stabbed several times and was laying in the entrance to the store when officers arrived about 6:44 p.m. Wednesday at the parking lot at 5198 Boulder Highway near Nellis Boulevard.

Officers caught the suspect in this case a short distance away with the assistance of witnesses, police said. He has been identified as 56-year-old Jose Torres-Rodriguez of Las Vegas, police said. Torres-Rodriguez was taken to the Clark County Detention Center where he was booked for one count of murder with use of a deadly weapon, police said.

Police say that Torres-Rodriguez tried to hit Hernandez with his vehicle and then stabbed him in an arm and a leg after Hernandez bumped Torres-Rodriguez's vehicle with a shopping cart.

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Could missing Wal-Mart signs wind up as dirty bomb?

By Muriel Kane,
The Raw Story
February 15th, 2009                    
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A little over a year ago, a routine audit at Wal-Mart reported a few missing exit signs at the company's stores and warehouses. As the audit continued, more and more signs turned up missing, and a month ago, Wal-Mart revealed that as many as 20% of the 70,000 signs at its 4500 facilities cannot be accounted for, a stunning total of 15,800 signs in all.

This would be of no particular concern -- except that the signs are radioactive. They contain tritium gas, a form of hydrogen which is used for emergency exit signs because of its ability to glow in the dark when the power goes out.

Tritium is not radioactive enough to be considered dangerous on casual contact. But if eaten or inhaled it can become absorbed into the body and may lead to cancer or reproductive abnormalities. Sean-Patrick Stensil of Greenpeace Canada told the Toronto Star, "The problem is that because it's hydrogen it can actually become part of your body. The radiation doesn't emit far, but when it actually becomes part of your cell it's right next to your DNA. So for a pregnant woman, for example, it can be really dangerous."

There are more than 2 million such signs in North America, and their use and disposal is supposed to be monitored by the U.S. Nuclear Regulatory Commission. Despite this, broken signs are often simply thrown away and wind up leaching their tritium into landfills. In February 2006, the Pennsylvania Department of Environmental Protection found that more than half of its water measurements downstream from landfills showed tritium levels that violated EPA guidelines for drinking water.

The NRC, whose records reveal a long series of event notification reports concerning Wal-Mart, has been seriously shaken up by the oversight failure. On January 16, it sent out a request for "61 organizations to check tritium exit signs in their possession against their records and to report any lost or missing signs to the agency."

The list includes such heavy users of the signs as AMC Theaters, Boeing, Brigham Young University, the Department of Veterans Affairs, Hilton Hotels, Home Depot, the Smithsonian Institution, and the U.S. Postal Service.

Although there is no indication that the Wal-Mart case involves anything worse than sloppy disposal methods, the greatest fear is that similar signs could be mixed with explosives and used to create a dirty bomb. "Most experts think the main purpose of a dirty bomb is to cause panic, disruption and expensive cleanup rather than lots of dead bodies," Norm Rubin, the director of nuclear research at a Toronto firm, told the Star. "A bunch of tritium, especially if oxidized in an explosion, would probably do that job fine."

Canada is one of the world's major producers of tritium, which is an abundant by-product of the particular design used in its nuclear reactors, and two Canadian firms are the leading North American suppliers of the signs. Compared to the U.S., Canada has been relatively lax when it comes to standards for tritium devices and does not require licensing or close record-keeping.

In 2007, Greenpeace warned that "releases of radioactive tritium from Canadian nuclear power plants are so elevated that children under 4 and pregnant women shouldn't live within 10 kilometres of an atomic generating station, and those living within five kilometres shouldn't eat food grown in their gardens."

In response, the Canadian Nuclear Safety Commission issued a report (pdf) in January 2008, asserting that there was no threat to health because "current tritium levels in drinking water are orders of magnitude less than the GL of 7,000 Bq/L near nuclear facilities, and similarly well below the European Union’s GL of 100 Bq/L."

Ontario Hydro also stated that it would cost $1 billion to lower tritium emissions to the level recommended by Ontario’s Advisory Committee on Environmental Standards, and in the end, no official action was taken. Now Canadian environmental activists appear to be hoping that the Wal-Mart incident will raise public awareness of the potential risks of tritium.

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Walmart snake bite victim files suit

Sun-Sentinel
February 15th, 2009                           
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PEMBROKE PINES, FL -- Hollywood resident Jay Richitelli filed suit against the mega retailer because a venomous pygmy rattlesnake bit him Just 6 last year in the lawn and garden section of the Wal-Mart Supercenter in Pembroke Pines, according to the Sun-Sentinel.

The 42-year-old accuses the store of negligence for failing to inspect the garden section of the store on Southwest 184th Avenue for snakes. According to the Sun-Sentinel, Richitelli is seeking an unspecified amount in monetary damages in the Broward Circuit Court case. His attorneys said his medical bills could top $100,000.

Richitelli still suffers from from respiratory problems because of the bite and his hand is scarred. Officials say Pygmy Rattlesnake bites are painful, but rarely fatal.

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Wal-Mart hails court ruling on discrimination suit

Reuters
February 14th, 2009                             
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NEW YORK (Reuters) - Wal-Mart Stores Inc praised a U.S. appeals court decision to rehear a ruling that would have allowed a sex discrimination claim against the retail giant to proceed as a class-action lawsuit.

Wal-Mart had been seeking a reversal of an earlier court decision to approve class-action status for plaintiffs who claimed, in the Dukes v. Wal-Mart case, that the world's largest retailer was biased in pay and promotions.

A U.S. appeals court in San Francisco said on Friday it would rehear the decision.

Jeff Gearhart, a Wal-Mart executive vice president and general counsel, called the decision a "positive step."

"It is important to note that the merits of this case have not been considered by the courts, and we believe the experiences alleged by the six individuals who brought this suit are not representative of the experiences of our female associates," Gearhart said in a statement late on Friday.

He said the retailer "is a good place for women to work and fosters female leadership among our associates and in the larger business world."

The Wall Street Journal reported that a reversal of the class-action status could help contain legal liabilities for Wal-Mart as plaintiffs would need to proceed individually.

The legal exposure for Wal-Mart is in the billions of dollars, the Journal said, citing some of the attorneys involved.

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Microsoft to open own retail stores

By JESSICA MINTZ ,
Associated Press
02.12.09                                  
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Microsoft Corp. on Thursday announced plans to open its own stores despite the economic downturn that has left many retailers struggling.

The company hired David Porter, a 25-year veteran of Wal-Mart Stores Inc. (nyse: WMT - news - people ), as its corporate vice president of retail stores. Porter was head of worldwide product distribution at DreamWorks Animation SKG (nyse: DWA - news - people ) Inc. since 2007.

Porter, who is set to start work on Tuesday, is charged with improving the PC-buying experience. The company said his first task will be to set the timing, locations and design of Microsoft (nasdaq: MSFT - news - people )-branded retail stores, which will sell computers installed with Microsoft software as well as other company products.

Microsoft has been working to revive the image of its ubiquitous Windows operating system, starting with a $300 million advertising campaign that began last fall. Vista, the most recent version of the software, was widely criticized for being slow, requiring new and pricer hardware, and not working with devices like printers and scanners. Vista has also been the subject of a series of snarky television ads from Apple Inc. (nasdaq: AAPL - news - people )

At the same time it launched upbeat new TV ads last fall, some of which struck right back at Apple, Microsoft posted 144 of its own employees in electronics chain stores around the world to talk with shoppers about Windows.

The "Gurus" seemed to be Microsoft's answer to Apple's in-store "Genius Bar." With its newly announced retail store intentions, the Redmond-based software maker is taking yet another page from Apple's play book. Apple credits its stores, concentrated mostly in the U.S., for helping boost its profile and draw new customers.

But Microsoft's timing may be off. The U.S. recession has socked the retail sector, and purveyors of electronics have been hit hard. Circuit City Inc. (nyse: CC - news - people ) filed for Chapter 11 bankruptcy protection in November and said in January it would liquidate its 567 U.S. stores, cutting more than 34,000 jobs. Best Buy (nyse: BBY - news - people ) Inc. laid off thousands of corporate employees in December and reported same-store sales - a key measure of retail health - sank 6.5 percent.

Even Apple, whose iPods, iMacs and iPhones draw brand-conscious customers willing to spend more for design, was hit in the holiday quarter by the recession as average sales per store dropped to $7 million from $8.5 million in 2007.

Microsoft had no comment on the plight of Apple and the big-box stores, but said its own retail stores can help shoppers make smarter decisions about spending money on technology.

The company had set up a concept store at its headquarters with displays of Windows computers, Xbox 360 consoles and games and other items. But the company said it's meant to help stores like Best Buy see new merchandising ideas in action, and is not a prototype for stand-alone retail stores.

Copyright 2008 Associated Press. All rights reserved.

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Wal-Mart Shifts Apparel Buying to New York

By Matthew Boyle,
Business Week
February 11th, 2009               
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Wal-Mart Stores' (WMT) decision to consolidate its apparel buying operations in New York could leave big vendors like Hanesbrands and VF in the lurch. That's because those apparel vendors, like most of Wal-Mart's suppliers, maintain sizable operations near the retail giant's headquarters in Bentonville, Ark. Hanesbrands (HBI), for example, opened its office in August 2007 to support its growing business with Wal-Mart, its top customer. VF (VFC), whose brands include Nautica, The North Face, and Wrangler, also sells more merchandise to Wal-Mart than to any other customer, and houses employees in Bentonville.

Sales to Wal-Mart equaled 12% of VF's total revenue of $7.2 billion in 2007, and 13% in 2006. Hanes is even more dependent on sales to Wal-Mart, accounting for 27% of its 2007 sales of $4.5 billion. Target (TGT) came next, with 14% of its total. "Most apparel suppliers with offices in Bentonville do a large business with Wal-Mart or they couldn't afford to staff a team here," says a retail operations consultant. Layoffs at Headquarters

The Bentonville-based source says there are approximately 100 apparel vendor offices there, most with fewer than 10 employees. A few are larger: Hanes, whose office is in the Bentonville Plaza, has space for up to 200 employees. There are rarely that many staff in Bentonville at one time, though, as most employees rotate in and out.

Wal-Mart disclosed plans on Feb. 10 to terminate 700 to 800 workers at its corporate headquarters. The cuts in merchandising, marketing, and real estate positions reflect the retailer's plans for fewer new stores and more remodels of existing outlets. As part of the restructuring, Wal-Mart said it plans to add an undisclosed number of jobs at its apparel office in New York. The retailer started moving apparel buyers to New York last year. "That is intelligent—and frankly, very late," says retail consultant and investor Howard Davidowitz in New York, who recalls leading Wal-Mart founder Sam Walton around Manhattan to meet with fashion designers. "Can you imagine having a fashion operation in Bentonville? It never made any sense whatsoever."

However, the impact on Hanes and others could be muted, Davidowitz says, since much of the work done by apparel suppliers in Bentonville has more to do with supply-chain issues—in other words, keeping the store shelves full. "It's not all working with the buyers," says Davidowitz. "A big piece of it is distribution and replenishment." Socks and Underwear Stay in Arkansas

"It is likely that the buying structure will not change for nonfashion items such as socks, underwear, and other basics," adds Sandy Skrovan, senior vice-president at retail consultancy TNS Retail Forward.

According to a Feb. 10 internal Wal-Mart document obtained by BusinessWeek, the only apparel functions that will remain in Bentonvillle are "in-season planning, replenishment, pricing, and modular development," which is industry jargon for store shelving. All the rest will move to New York, including design and development, marketing, buying, preseason planning, and brand merchandising.

Wal-Mart's buying decisions regarding fashion trends are largely made in showrooms in New York, Davidowitz says, with orders immediately sent to factories in Asia. "The people in the fashion business are not residents of Bentonville," he says.

Still, the Bentonville-based consultant, an expert in retail supply chains and logistics, says the need for replenishment staff "will be minimal and may not warrant keeping an office." The vendor could choose to outsource such work, or have those employees work from home, he says.

Spokespeople for Wal-Mart, Hanes, and VF could not be reached for comment.

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Walmex 4Q profit climbs 4.5 pct on bargain sales

By OLGA R. RODRIGUEZ ,
Associated Press
02.11.09                                         
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Wal-Mart de Mexico SA said net income rose 4.5 percent in the fourth quarter as the company cut prices to increase sales amid Mexico's economic slowdown.

Profit at the Mexican unit of Wal-Mart Stores Inc. (nyse: WMT - news - people ) climbed to 4.9 billion pesos (US$359 million) from 4.7 billion pesos in the fourth quarter of 2007, the company said in an earnings report.

Sales rose 8 percent to a record 72.4 billion pesos (US$5.3 billion) as the Mexico City-based retailer slashed prices to draw shoppers, who are seeking bigger bargains as the economy slows and unemployment rises.

Mexico has been battered by the recession in the United States, which buys 80 percent of the goods it sells abroad. Growth slowed to 1.5 percent in 2008 from 3.3 percent the year before, as consumer credit tightened and money sent home by migrants fell 3.6 percent to its lowest level on record.

To combat the downturn, Walmex, as Mexico's largest retailer is known, froze prices on 500 items and gave discounts on clothing and appliances in December, its strongest month for sales, Walmex President and Chief Executive Officer told investors in a conference call.

Real-Time Quotes 02/12/2009 4:00PM ET WMT$48.13-0.21%Get Quote BATS Real-Time Market Data by XigniteIt also opened 102 new stores in the fourth quarter, compared to 63 in the same period last year, increasing its reach to 1,205 units in Mexico.

As a result, customer traffic increased 12 percent last year and sales were the highest in the history of the company, said Chief Financial Officer Rafael Matute.

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"Our financial strength combined with our discipline in expenses and our constant search for efficiency allowed us to heavily invest on prices to drive store traffic and increase customers loyalty," Matute told a conference call with investors.

Walmex shares fell .9 percent to close at 29.2 pesos on Mexico's stock exchange before earnings were announced on Wednesday.

(This version CORRECTS that profit was 4.5 percent sted 9 percent.)

Copyright 2008 Associated Press. All rights reserved.

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Wal-Mart Cuts Jobs

By Lana F. Flowers,
The Morning News
February 10th, 2009                            
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BENTONVILLE -- Hundreds of Wal-Mart and Sam's Club corporate office workers lost their jobs Tuesday as the world's largest retailer restructures to cut costs in a dismal economy.

"We expect the changes to impact approximately 700-800 Home Office positions including merchandising, real estate, marketing and support divisions in Wal-Mart U.S., Sam's Club merchandising and some corporate functions," said Mike Duke, Wal-Mart president and CEO, in a memo distributed to employees and the media early Tuesday afternoon.

Those who lost their jobs included marketers and buyers in the pharmacy, optical and medical clinics division, which are consolidating into one division of health and wellness, said Wal-Mart spokesman David Tovar. The health and wellness consolidation is resulting in job losses that are included in the overall total, though Tovar did not provide specific numbers or wage ranges.

Wal-Mart is also moving its apparel positions to New York City, Tovar said. Living expenses will be higher in the Big Apple, so those workers will earn more than if the positions stayed in Northwest Arkansas, he said. But, having employees at the center of the garment district -- close to designers, suppliers and trend watchers -- will make Wal-Mart's apparel division more efficient, he said.

Wal-Mart is opening fewer U.S. stores -- about 125 to 140 this year compared with 191 two years ago, Tovar said. That means the company needs fewer real estate employees to find store sites and negotiate land purchases and leases, he said.

However, Wal-Mart expects to add jobs in its store planning division responsible for remodeling stores, Tovar said. He did not provide a specific number. *

Analysts React

There are "at least 1,000 companies" that would like to trade places with Wal-Mart from a financial health standpoint, said Scott Alaniz, portfolio manager with Boston Mountain Money Management in Fayetteville.

"Wal-Mart is being very proactive as these cuts early in the fiscal year tell me the company is seeing some serious economic trends out there, prompting them to go leaner," Alaniz said.

He believes Wal-Mart's footprint will be larger in five years, but in the meantime it must muddle through a weak trough as there "is no place to hide."

As a Wal-Mart shareholder, Alaniz said he applauds the company's efforts to stay profitable and uphold its fiduciary responsibility. But as a resident of the area, Alaniz said he fears the 5 percent employment reduction will be a major blow to consumer confidence and likely will hinder the region's economic recovery from happening in 2009.

The economy definitely is suffering when a global discounter such as Wal-Mart lays off employees, said Scott Krugman, spokesman for the National Retail Federation, a trade association.

"Consumers right now are not spending and when they are it is on necessity purchases. Everyone is taking a hold-their-breath approach on the next stimulus package, the banking bailout package," Krugman said.

He doesn't expect any changes until the third quarter and anticipates retailers will continue cutting costs to keep stores open.

Uncertain Future

Former Wal-Mart workers will get paid for 60 additional days and receive health coverage for that time, Tovar said. Those eligible will be given severance pay, based on their tenures.

Author Michael Bergdahl, a former Wal-Mart human resources executive, said if he were a Wal-Mart supplier, he would find out who the former employees are.

"I would snap up some of these people who know the culture," Bergdahl said. Many Wal-Mart suppliers have local offices.

Tovar confirmed Wal-Mart has prohibited former employees from working for suppliers for at least one year after leaving. However, that waiting period -- along with the prohibition of working for a vendor in a specific category -- has been waived so former employees can immediately apply for vendor jobs, Tovar said.

Not every former Wal-Mart employee is suited to a vendor job.

"Vendors can have specific requirements," said Cameron Smith, who owns an eponymous recruiting firm. Those specific skills could be as precise as finding someone who is a marketing expert for Latina cosmetics.

Smith said his firm has been hired by five other companies in the past two weeks to provide "job triage" services, such as resume writing and job search tips, to laid-off employees.

Kathy Deck, director of the Center for Business and Economic Research at the Sam M. Walton College of Business at the University of Arkansas, doesn't think those laid off are likely to be absorbed quickly into the local economy.

Allowing displaced workers to apply at vendors won't have a significant impact on job availability, Deck said. The type of jobs offered locally by vendors are more customer-relations oriented and don't match the skill-sets of those laid off by Wal-Mart, she added. There aren't enough marketing, merchandising and real estate positions in the region to absorb 700 to 800 new hires in the near future, Deck said.

Time Of Change

Duke succeeded Lee Scott as president and chief executive officer on Feb. 1 after Scott retired. Doug McMillon, former Sam's Club CEO and president, succeeded Duke as president and CEO of Wal-Mart International.

Wal-Mart as of Monday had not named a new Sam's Club president and CEO to take McMillon's place. Tovar said the company plans to name a Sam's Club president but did not give a specific date or a short list of job candidates.

Duke said Wal-Mart expects more restructuring.

"Starting today, and over the next few weeks, you will be hearing from your leaders about some important changes designed to align our staffing and organizational structure to increase operational efficiencies, support our strategic growth plans and help reduce our overall costs," Duke's memo stated.

However, the restructuring won't impact stores, Duke said.

"As part of our overall store plan, we will continue to add thousands of jobs in our stores and clubs this year," he said.

'It Is Bad Out There'

Wal-Mart reported same-store sales at its U.S. stores increased 2.1 percent in January, a time when other retailers reported sales decreases.

However, Wal-Mart operates on a thin margin of about 3 cents on the dollar.

The layoffs from a retailer where consumers buy basics, from milk to bread to diapers to automotive oil, shows how bad the economy is, Deck said.

"It is bad out there. I don't think it's hard to overstate right now just how bad it is," she said.

Though Wal-Mart is performing well among retailers, the company still must think strategically about its costs and work force, Deck said.

Increased purchases of consumables and declining gasoline prices likely affected Sam's Club sales and earnings, which caused Wal-Mart executives to scrutinize the bottom line, said Richard Hastings, a Charlotte, N.C.-based consumer strategist with Global Hunter Securities.

Hastings does not make stock recommendations or set target stock prices, but Global Hunter Securities does.

Wal-Mart employees also are suffering from "technological undertow," Hastings said, meaning technology from computers to databases such as Retail Link make it easier to do more work with fewer people.

"You can have more people that are working on things on a project basis or who can do things on a long-term contract basis. The appeal to have a lot of full-time committed, benefited staff is not as urgent as it was and there are a lot of alternatives today," Hastings said.

Bergdahl said Wal-Mart holds store managers to strict payroll budgets and if sales decrease, so must the hours employees work. The same thing likely is happening at the corporate office, Bergdahl said, as the company attempts to streamline payroll and become more cost-efficient.

"It's a sign of the times and Wal-Mart is being fiducially responsible to its shareholders," Bergdahl said.

He noted Wal-Mart is investing more money in international stores, with the recent opening of an office in Moscow; the acquisition of 58.2 percent of Santiago, Chile-based Distribucion y Servicio D&S S.A., Chile's largest food retailer; and the BestPrice Modern Wholesale joint venture with Bharti Enterprises in India. The first BestPrice store will open in Punjab, India, later this year.

"Wal-Mart is only in 14 countries and yet there are 200 countries in the world," Bergdahl said.

Shares of Wal-Mart (NYSE: WMT) closed Tuesday at $47.72, down $1.56. The share price ranged from a $63.85 high to a $46.25 low, set Feb. 2, in the past 52 weeks.

The Morning News' Kim Souza contributed to this report.

Text of the memo Wal-Mart Stores Inc. president and CEO Mike Duke distributed to Wal-Mart employees and the media on Tuesday afternoon:

Corporate Announcement

To: All Home Office associates

From: Mike Duke, president and CEO, Wal-Mart Stores, Inc.

Date: February 10, 2009

RE: Organizational Changes

Dear Home Office associates:

As the new fiscal year begins, we find ourselves living in unprecedented times, and I am reminded every day of how our company is uniquely positioned to help Americans weather the economic storm. We know that millions of working men and women are relying on our low prices more than ever before, and we must continue to be an advocate for them.

Starting today, and over the next few weeks, you will be hearing from your leaders about some important changes designed to align our staffing and organizational structure to increase operational efficiencies, support our strategic growth plans and help reduce our overall costs. Some of these changes will involve reductions in Home Office positions while others will create additional management jobs elsewhere. And, as part of our overall store growth plan, we will continue to add thousands of jobs in our stores and clubs this year.

We expect the changes to impact approximately 700-800 Home Office positions including merchandising, real estate, marketing and support divisions in Walmart U.S., Sam's Club merchandising and some corporate functions. The restructuring will not impact store and club operations.

We do not make these decisions lightly, and every individual decision was carefully considered. We recognize this is a difficult development for the members of our Wal-Mart family who will be leaving the company. While the number of associates that will be impacted by the restructuring is very small compared to the 2.2 million associates we have worldwide, I can assure you that we will treat them with care and dignity and help support them during their transition, consistent with our basic beliefs and respect for the individual.

If there is one constant in our organization, it is change. We are committed to our purpose of helping people save money so they can live better and we will continue to take appropriate steps to further align our support structure with our business plans. We must also challenge costs in every corner of the company in order to keep our business strong today and well into the future.

We care about our associates, especially during times like these. Thank you for everything you have done and will do to serve our customers and help make our company better.

Mike

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Hard Times May Soften Opposition to Wal-Mart

By George Anderson
Retail Wire
02/10/09                                               
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Wal-Mart is hoping that current economic conditions will make it easier for the chain to gain entry into Chicago. The chain, which operates one store in the city at the moment, has faced fierce opposition from organized labor and other groups in past attempts to build new locations.

Working to its advantage is that new Wal-Mart stores will bring construction and retail jobs, added tax revenues, plus savings for consumers in the area where it builds. According to reports, the retailer is looking at about a dozen sites in the city with plans to open as many as five new stores.

John Bisio, a spokesman for the chain, told the Chicago Tribune, "The West Side store set an example as a good employer, a good merchant... a real economic engine... This is nonsense that we don't have more Wal-Mart stores in Chicago."??

Chicago alderman Howard Brookins said Wal-Mart would be building a store on the city's 21st Ward on the South Side.

"In an economy where retailers are laying off people, it makes more sense than ever to pull the trigger," Mr. Brookins told the Trib. "This would mean hundreds of millions of dollars in construction revenue."??

Labor intends to fight any move by Wal-Mart to open new stores within Chicago's city limits.

"It's clear they are trying to take advantage of the economic crisis that's out there and use that for political leverage," said Jerry Morrison, executive director of the Illinois State Council of the Service Employees International Union (SEIU). "In an economic crisis, you cannot go on giving people non-subsistence wages and having the state subsidize their health care."

Discussion Questions: Will current economic conditions get Wal-Mart fast-track approval to build multiple new stores in Chicago? Do Wal-Mart and other retailers have added leverage to gain concessions from local and state governments when it comes to new construction at the present time? How much of a factor is this in deciding to build?

Wal-Mart to renew effort to add stores in Chicago - Chicago Tribune

Comments

Wal-Mart still wants to dominate retail. Struggling Main Street retailers will voice their opposition more strongly than ever since they do not have a seat at the bailout table. Bob Phibbs, President/CEO, The Retail Doctor & Associates - Braintrust Panelist

The weak economy has given Wal-Mart leverage, not only in opening new stores but with suppliers as well. So this is a no-brainer. When the economy was good, more power was put in the hands of local governments and the anti-Wal-Mart fanatics. The decision to build has already been made. The next step for Wal-Mart is to continue to squeeze as many dollars as they can from local governments to help finance their ventures. The fact that Wal-Mart has decided to slow its growth has given them more leverage. Kind of a coincidence the economy tanked about the same time Wal-Mart was scaling back its growth. David Livingston, Principal, DJL Research - Braintrust Panelist

Most any city or town is more likely to grant concessions to builders in this economy. There will be those who will argue that Wal-Mart will create jobs on the one hand and put smaller competitors out of business on the other. Wal-Mart has rehabilitated its image a great deal, but this will still not be a slam dunk. They'll go through more scrutiny than others might, and the unions will certainly stir the pot and make life more difficult than it has to be. So it'll be costly, time consuming and difficult, but it'll happen. Warren Thayer, Editor, Refrigerated & Frozen Foods Retailer, BNP Media - Braintrust Panelist

Last month almost 600,000 jobs were lost in the U.S. Over the last 3 to 4 months 1,500,000 people lost jobs. One wonders how many members of the SEIU lost theirs. It seems that Mr. Morrison would rather have people out of work than working and making some kind of money. Perhaps, Mr. Morrison believes that anyone who doesn't belong to his union doesn't deserve a job. I hope the Wal-Mart plans get fast tracked in Chicago. We have to stop the bleeding in this economy and this is certainly is a step in the right direction. I can assure a very, very near sighted Mr. Morrison that if these Wal-Mart stores are completed and opened, in spite of that that the number of employed retail workers in Chicago will be less than today and the number of empty retail buildings will continue to grow.

The risk of expanding a retail business in today's environment is extraordinary. From a retailer's point of view, if the risk of opening a new store is lessened to the point that they can make a positive decision to enter a market, then whatever institutions can, should provide concessions to lessen that risk.

Gene Detroyer, Entrepreneur, Advisor, Consultant, Counselor, Independent - Braintrust Panelist

This is Chicago we are talking about here, folks. The key question is not whether the unions will get shushed in this economy. They will--provided that Wal-Mart has finally connected with the developers who are connected. Ben Ball, Senior Vice President, Dechert-Hampe - Braintrust Panelist

Every city, county, state, and federal taxing authority is saying invest dollars, bring jobs and we will support you. Why should Chicago be any different? Mel Kleiman, President, Humetrics - Braintrust Panelist

Wal-Mart is the world's leading retailer. It provides a lot of savings to the families that need it most. Get over it Chicago!!! Just don't roll over. Make sure that you are not providing city services and concessions that are inappropriate to Wal-Mart's contribution. Too many neighborhoods have been destroyed when Wal-Mart wipes out the mom and pops only to move across town after a few years. If Wal-Mart wants to invest in Chicago's future, make them stay as a good neighbor for generations, just like the mom and pops have. Bill Robinson, Senior Executive, QuantiSense - Braintrust Panelist

While it may improve their odds, I sure hope the greater wisdom is evident--that they destroy the fabric of community, disrupt lives, and drive a new economy we can live without. The question is, can Americans be disciplined to live with a little less convenience, and can independent locally-owned retailers step it up enough to satisfy the reasonable expectations of consumers? Many of them have created their own problem by crying the blues when they have laid down and expected someone to "do something about it," rather than stepping it up and meeting the demands of their customers. Sid Raisch, President, Horticultural Advantage

You'd hope Chicago would welcome them with open arms. Why let unions dictate what customers want, anyway? That's a bad idea from the start. Besides, Walmart is by no means the "evil" company many portrayed it to be a mere decade ago (Macy's destroyed Marshall Field's, what has Walmart done?) They've made tremendous strides on all fronts, including labor. Let's move on, get retail moving, going in Chicago. Lee Peterson, Vice President, Creative Services, WD Partners - Braintrust Panelist

Has anyone ever been to South Side or West Chicago? There's not much there besides check cashing centers, projects, liquor stores and store-front churches. If Walmart wants to invest in these areas and give people who have few prospects some honest work, why not? I seriously doubt Michigan Avenue or Oak Street has anything to worry about. 'jameseastbay'

This is a tough one. Currently most consumers living in these areas shop with local convenience stores and pay crazy prices in relationship to their incomes. Otherwise, they head downtown and manage parcels on the CTA for the trip home. In the end, the residents will benefit from prices that will stretch already lean household budgets.

The local retailers (aka voters/campaign donors), like local retailers all over Main Street USA, will be forced out.

Like all of the BIG city employers, how will Wal-Mart contribute to Chicago?

This is a tough one with plenty of GOLDEN opportunities. But as we all know, "retail ain't for sissies." 'IMRetail'

With "card check" on the political horizon, Wal-Mart is picking the wrong time to expand into this perpetually difficult labor market. Robert Craycraft, Vice President, Industry Relations, American Resort Development Assn. (ARDA)

The economic environment would seem to indicate a wider opening for Wal-Mart. But a look at the bigger picture shows that a few specific factors could dilute any urgency for opening new Wal-Mart stores. The City Council is heavily entrenched in winning a bid for the 2016 Olympics, and having a labor-friendly local resident in the White House doesn't help the retailer's cause either. While there will be challenges, Wal-Mart clearly has a strong track record of working with disparate parties to resolve similar situations. Mark Baum, Partner, Diamond Management & Technology Consultants - Braintrust Panelist

This should open up opportunities in a lot of communities that have been hostile to Wal-Mart. There aren't going to be too many local politicians right now who aren't going to embrace Wal-Mart bringing in new jobs, regardless of the longer-term implications. Ted Hurlbut, Principal, Hurlbut & Associates - Braintrust Panelist

If I was running Wal-Mart marketing right now, I would be excited by the opportunity for the company to reinvent itself in the eyes of its detractors. I'd be going back to every community they desired to enter but were stopped, and putting out a hand of cooperation and assistance in helping the area out. We have seen sales grow with the chain due to its pricing and so therefore in these times, the customer is voting with their pocketbook. Wal-Mart should come to the table with a new image of support for America. Now they have a opportunity to build a new platform, similar to how they started. Jerry Gelsomino, Principal, FutureBest - Braintrust Panelist

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Wal-Mart drives for more Mass. grocery business

By Jenn Abelson,
Boston Globe
February 10, 2009                        
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Wal-Mart Stores Inc., the nation's largest grocer, is making an aggressive push across Massachusetts to double its supermarket business over the next year.

The effort to woo more bargain-conscious Bay Staters includes the construction of a new supercenter in Worcester and the addition of markets to stores in Halifax, Hudson, Oxford, Salem, Springfield, and Swansea. A grocery addition already under construction at Wal-Mart's North Attleborough location is expected to be completed this fall.

At a time of massive layoffs and store closings across the Commonwealth, cities, towns, and residents once dedicated to derailing anything Wal-Mart are rolling out the red carpet for the discounter. Wal-Mart says its efforts will create 700 jobs at Massachusetts stores, and it is actively seeking additional store opportunities in New England, one of the last frontiers for the Bentonville, Ark., company to conquer.

"Some of the towns have joked that we're providing the economic stimulus they need," said Christopher N. Buchanan, a Wal-Mart senior manager of public affairs and government relations. "There's still a great deal of growth opportunities here."

Across the nation, Wal-Mart has pushed to convert discount stores into larger supercenters with full-service groceries. The merchant has faced opposition in other areas of the country, and New England has been a particularly tough market to crack because of limited real estate and local resistance. But Wal-Mart says it is facing fewer obstacles here these days as consumers increasingly hunt for bargains and communities look to attract businesses and jobs during these tough economic times.

In just five years, Wal-Mart has taken away about 3 percent of retail food sales in New England - or about $1 billion - from traditional stores, according to the Griffin Report of Food Marketing, a trade publication in Duxbury. Wal-Mart currently is the sixth largest grocery chain in New England with $1.5 billion in sales at its 37 supercenter stores. And analysts predict the discounter will gain market share at an accelerated pace over the next five years as it opens more supercenters across the region.

Each of Wal-Mart's new supercenters will house traditional general merchandise, such as clothes and toys, in addition to a full-service market with fresh produce, a delicatessen, bakery, dry and frozen goods, and meat and dairy departments. Retail analysts, who estimate the grocery items are often priced anywhere from 10 to 20 percent lower than at competitors, expect the supercenters to help drive down prices at rival chains and permanently alter the supermarket landscape in New England.

"The timing is right for the Wal-Mart expansion because consumers are looking for a bargain," said Kevin Griffin of the Griffin Report of Food Marketing. "It's safe to say that the top traditional grocers, the Stop & Shops, the Shaw's, are scared. Wal-Mart is a major threat because they price so competitively. And this is a business that runs on small margins anyway."

So far, rival chains with a big presence in New England have declined to comment specifically on Wal-Mart's grocery plans.

"Stop & Shop continues to offer customers great values and great food when they shop in our stores," said spokeswoman Faith Weiner a spokeswoman for New England's top grocer with about 244 stores and about $7.4 billion in sales in 2008. "We focus each day on serving customers through a great shopping experience. We don't focus on the competition, only on continuing to improve and be responsive to our customers."

Judy Chong, a spokeswoman for Shaw's, the second-largest chain in New England with roughly 200 stores and $5.1 billion in sales, said the company continuously evaluates consumer research "to ensure that we are best meeting consumer shopping needs by providing them with great overall value."

Wal-Mart's movement to add groceries will hurt existing supermarkets because of lower prices, said Al Norman, who takes credit for stopping Wal-Mart from locating in his hometown of Greenfield in the early 1990s. He said Wal-Mart will ultimately force competitors to close. He says the opposition to the company is as fierce as ever, with residents still concerned about sprawl, negative impact on local businesses, and traffic congestion.

"New England has been very hostile to Wal-Mart," said Norman, who founded Sprawl-Busters Alert, which helps community coalitions fight megastores like Wal-Mart and other large-scale developments.

But Wal-Mart, which is in the beginning of the approval and permitting process for most of the expansions, thinks New England communities are ready to embrace its supercenters.

"We're not facing the same level of opposition that we once did, given the economy, and the job we've done as a company to better explain ourselves to the community," Buchanan said.

Timothy McGourthy, Worcester's director of economic development, said the developer of the Wal-Mart project spent many months working with the neighbors and environmental groups and addressing the city's concerns. "This project was approved because it was a good project," he said.

In recent years, Wal-Mart also has worked closely with locals to organize support, including the creation of the New England Customer Action Network, which has 60,000 customers who have volunteered to help the company get out the positive word for new stores and expansion projects.

Wal-Mart shopper Edward Hamel, 78, has already agreed to show up at the next hearing for the Swansea expansion.

"I've lived in town for 50 years and I've seen the good, the bad, and the ugly," said Hamel, who has already written letters in support of the expansion. "This town needs Wal-Mart. They have a lot of good things for people who don't have a lot of money."

© Copyright 2009 The New York Times Company

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Grocer Price War Threaten Margins

Melinda Peer,
Market Scan
02.10.09                           
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An analyst downgrades Kroger and Safeway on expectations that lower prices will hurt the bottom line. Kroger Co. 02/12/2009 4:02PM ET$21.40-$0.13-0.60%

Supermarkets have declared war, aggressively slashing prices to win over cost-conscious consumers. However, this is imperiling their margins, one analyst said Tuesday.

Citing expectations for a "modern-day price war," Citi analyst Deborah Weinswig downgraded Kroger (nyse: KR - news - people ) to "hold" from "buy" and Safeway (nyse: SWY - news - people ) to "sell" from "hold." She also reduced earnings estimates on both grocers in addition to Supervalu (nyse: SVU - news - people ) and Wal-Mart Stores (nyse: WMT - news - people ).

Shares of supermarket operators closed Tuesday broadly lower. Supervalu fell 8.3%, or $1.62, to $17.93, Kroger lost 6.4%, or $1.47, to $21.44, and Safeway shed 6.4%, or $1.41, to $20.50. Great Atlantic & Pacific Tea, which operates A&P, Pathmark and Food Emporium stores, closed down 7.6%, or 55 cents, at $6.65 and Whole Foods Market dropped 5.3%, or 59 cents, to $10.48.

The sector has been one of the few to benefit from the global economic slowdown since deteriorating home values and staggering job losses have prompted Americans to save money by preparing more meals at home. (See "Grocers Cash In As Americans Eat Cheap.") As economic conditions continue to deteriorate, shoppers are increasingly seeking out the lowest prices--especially on company-branded products--raising the stakes for stores wanting to be seen as offering the best value for the buck. (See "Food Markets.")

"While we expect the 'trade in' from the restaurants and 'trade over' to private label to benefit the supermarkets, we do not believe it will be enough to offset pricing pressure from competitors," Weinswig said, pointing to price-slashing at regional grocers and promotions for lower prices in the future.

Furthermore, Weinswig expects Wal-Mart to boost its private-label offerings. The retailer's private-label offerings currently account for 16.0% of products compared to 27.0% at Kroger and 25.0% at Safeway.

The retailer, which is already known for its competitive prices, is planning on relaunching its Great Value brand this year as a way to appeal to budget-minded shoppers.

Comment On This Story

"We believe that Wal-Mart would likely invest the margin gains from private label back into price to gain market share. These actions could dampen topline sales and gross margin in 2009," Weinswig said. On Tuesday, she lowered the company's price target to $60 a share, from $65, previously.

Wal-Mart's stock closed Tuesday down $1.56, or 3.2%, at $47.72.

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Wal-Mart cutting 700-800 jobs at headquarters

By CHUCK BARTELS ,
02.10.09                                        
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Wal-Mart Stores Inc. will cut 700 to 800 jobs at its northwestern Arkansas headquarters as it builds fewer new stores this year and makes other operational changes, the world's largest retailer announced Tuesday.

The cuts are in Wal-Mart (nyse: WMT - news - people )'s real estate, apparel and health and wellness departments, spokesman David Tovar said. Wal-Mart would not say how many jobs will be cut in each segment.

Tovar said employees will be told of the cuts in the next couple of weeks and there was no immediate plan to make other positions within Wal-Mart available to them.

But he said the company also plans to add jobs at its New York apparel office and expects "to add thousands of jobs" at Wal-Mart stores and Sam's Club warehouses this year - a figure that includes hires at new stores.

Last year, Wal-Mart opened 166 new stores, but this year that number will be between 125 and 140 - leading to the cuts in the real estate unit.

Obviously, we don't need as many people to do the work to site a new store, to build a new store," Tovar said. But since Wal-Mart is expanding its program to renovate and expand stores, it will hire more workers in that area, he said.

Tovar said Wal-Mart added 33,800 jobs last year from new stores. "We expect growth in the tens of thousands this year as well," he said. Worldwide, it has more than 2 million employees, and 14,000 work at the headquarters.

Comment On This Story

The company is moving positions in its apparel buying and planning group from Bentonville to New York.

Related Stories Unemployment Surges; Pleasant Surprises In Retail Wal-Mart Registers Disappointment February 2009 Layoffs Wal-Mart Rolls Back Earnings Outlook Retail Woeful; Street Subdued Related Videos Coca-Cola Beats Rio Tinto In The Spotlight JA Solar Gets Burned Street Sees Stimulus, Earnings Murder, She Wrote StoriesVideos "New York City is the fashion hub and we needed to have more people located there," Tovar said.

In health, Wal-Mart is consolidating three areas into one. Pharmacy, optical and in-store health clinics have operated as separate units. Combining them will result in job cuts.

Workers whose jobs are cut would be paid for 60 additional days and will receive health coverage for that time, he said. Those eligible will be given severance pay, based on their tenure. He said the company would waive its policy of not letting employees immediately take jobs with vendors, and outplacement services would be available.

Wal-Mart shares fell $1.61, or 3.3 percent, to $47.67 in an overall lower market Tuesday.

In July 2001, the company laid off 100 workers at its headquarters and kept 300 position unfilled, which Wal-Mart attributed to economic conditions after a review of its home office operations. Last year the company cut some positions in the apparel office.

In recent weeks, major retailers and manufacturers including Macy's Inc. (nyse: M - news - people ), Bon-Ton Inc. and Liz Claiborne Inc. (nyse: LIZ - news - people ) have announced massive job cuts and other cost-cutting measures as they aim to preserve cash in the wake of an unprecedented pullback in consumer spending.

Wal-Mart was one of only a handful of merchants that reported a sales gain in January, while most others suffered deep declines. The overall industry sales decline marked the fourth consecutive sales drop since October.

Sam's Club rival Costco Wholesale Corp. (nasdaq: COST - news - people ) has said its profit for the quarter ending in February will "substantially" miss Wall Street estimates due to poor sales and margins.

Copyright 2008 Associated Press. All rights reserved

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Lawyer: Wal-Mart stampede witnesses get grand jury call

By ANN GIVENS ,
Newsday
February 6th, 2009                  
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Witnesses to a shopper stampede that killed a man at a Valley Stream Wal-Mart on Black Friday last year have been called to testify before a special grand jury investigating what happened that day, their lawyer said.

Robert Steinberg of Garden City, who represents two people who were hurt in the melee, said one of his clients has already testified to the grand jury. He said the other has been subpoenaed. He declined to identify them.

If a grand jury has been empaneled to look into the case, it could mean that the district attorney is exploring criminal charges against Wal-Mart, experts said.

The district attorney's office has previously acknowledged investigating how Wal-Mart prepared for the flood of shoppers the day after Thanksgiving. The chain has said it hired additional security personnel, staffed the store with more employees and erected barricades at the Green Acres Mall location in anticipation of a crowd.

Eric Phillips, a spokesman for Nassau District Attorney Kathleen Rice, would not confirm that a grand jury has been empaneled because he said there is an ongoing investigation into what happened.

Wal-Mart spokeswoman Daphne Moore also would not confirm that a grand jury is meeting, and would not speculate on the possibility that the superstore could be charged with a crime.

Seasonal security worker Jdimytai Damour, 34, of Jamaica, Queens, was trampled when some 2,000 frenzied shoppers broke through a glass door in a rush to get to special Christmas sale items.

Damour's family, as well as several people who were caught up in the melee, have filed lawsuits against Wal-Mart.

Damour's "family supports any effort to investigate this terrible tragedy, and ensure that justice is served," said Andrew Libo, a Manhattan lawyer representing Damour's relatives.

The grand jury could indict Wal-Mart on a charge of criminally negligent homicide - the charge experts said would be most likely. If so, prosecutors would have to prove that the company failed to perceive that it was taking a substantial risk in the way it handled the Black Friday event, said Eugene O'Donnell, a law and police science professor at John Jay College of Criminal Justice in Manhattan.

Prosecutors would likely focus on how much warning the store had that such a large crowd might turn up and how it trained employees and security personnel, among other things, O'Donnell said.

If Wal-Mart were found guilty, it could be punished with a fine - up to $5,000 for a misdemeanor or up to $10,000 for a felony. It could also receive a "conditional discharge" with stipulations that could include providing restitution to people hurt in the crush or their families, O'Donnell said.

James Acker, a criminal law professor at Albany Law School, said even though $10,000 is a pittance to a huge company like Wal-Mart, it can make a strong symbolic statement.

"It's an attention-getting device that shows the community that this is serious," he said

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US retail sales fall; Wal-Mart scraps monthly view

By Karen Jacobs,
Reuters
February 5th, 2009                      
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ATLANTA, Feb 5 (Reuters) - Most U.S. retailers reported lower monthly sales for January, although discounter Wal-Mart Stores bucked the trend with a stronger-than-expected increase as shoppers stocked up on necessities such as food.

Retailers as a whole delivered a 1.8 percent same-store sales decline in January. That's the second-weakest monthly drop since Thomson Reuters began tracking the data in 2000, behind a 2.1 percent fall in November 2008.

Apparel stocks posted some of the biggest share price gains, and Christine Chen, an analyst with Needham & Co, said the sector could be approaching a bottom.

Most retailers maintained or slightly raised their guidance, Chen noted, adding, "That sends a message to investors that maybe numbers are finally low enough and expectations are finally low enough."

Wal-Mart's (WMT.N) U.S. sales at stores open at least a year rose 2.1 percent, excluding gasoline, better than Wall Street estimates of a 1.1 percent rise.

Excluding Wal-Mart, the decline was 5.7 percent, with apparel chains like Gap (GPS.N) and department store operators like Saks Inc (SKS.N) posting the sharpest drops.

Wal-Mart shares rose 4.3 percent, while the Standard & Poor's Retail Index .RLX advanced 2.8 percent.

The International Council of Shopping Centers forecast that U.S. same-store sales will drop 1 to 2 percent in February. The group said it expects sales to stay "sluggish" for six months, but sees the rate of decline moderating later this year.

For a table of same-store sales results, see [ID:nBNG143462].

WAL-MART SCRAPS MONTHLY FORECASTS

Wal-Mart also said it would no longer issue monthly sales forecasts because of volatile consumer habits, in a further sign of concern over the economy. Instead, the world's largest retailer will give forecasts on a 13-week basis, four times a year.

Two other chains, Pacific Sunwear of California (PSUN.O) and Chico's FAS (CHS.N), also said they would stop reporting monthly same-store sales.

"Wal-Mart follows a long line of companies deciding not to provide guidance," said retail analyst Todd Slater of Lazard Capital Markets. "It suggests a significant lack of visibility."

Wall Street estimates for January were already depressed following December sales that reflected the weakest holiday shopping season in nearly 40 years.

While deep discounting attracted some shoppers, cooler temperatures slowed traffic in parts of the United States. A drop in gift-card use during January, typically a month driven by clearance sales, also contributed to the weakness.

Industry leaders are braced for more pain as jobless numbers continue to rise and access to credit remains tight.

"We don't expect nor do we plan for improvement in customer traffic in 2009," J.C. Penney (JCP.N) Chief Executive Myron Ullman told analysts. "We believe that the current environment is not of short duration."

On Thursday, the National Retail Federation trade group repeated its call for a series of temporary sales-tax holidays, saying the current U.S. economic stimulus legislation might not do enough to spur consumer spending and economic growth. [ID:nN05509470]

CLOTHING CHAINS STAND OUT

Still, quite a few retailers such as Gap Inc, Macy's (M.N), Aeropostale (ARO.N), Ross Stores (ROST.O) and TJX Cos (TJX.N) raised their profit forecasts. For briefs, see [ID:nWNAB8748] [ID:nWNAB8750] [ID:nWNAB8790] [ID:nWNAB8874] [ID:nWNAB8840].

Among clothing chains, standouts included Aeropostale's 11 percent, same-store sales rise and American Apparel (APP.A), which managed a 2 percent sales gain for January on top of a year-earlier 40 percent rise.

Aeropostale shares were up 7.7 percent, Gap gained 6 percent and TJX advanced 10.7 percent. Macy's rose 5.4 percent.

The worst performers included Children's Place (PLCE.O), with same-store sales down 11 percent, and American Eagle Outfitters (AEO.N), which posted a 22 percent drop. Department stores continued to ring up declines as mall traffic and demand for luxury goods suffered.

Talbots (TLB.N), which has struggled with declining sales as women over 35 pull back on purchases, announced that it will close stores and cut corporate jobs. The retailer also said it got a $200 million loan from a majority shareholder that it will use to pay off debt.

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Enterprise and Wal-Mart Boost Their Alternative Fuel Vehicle Fleets

GreenBiz.com
February 4th, 2009                          
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ST. LOUIS, Mo. -- Enterprise Rent-a-Car is betting big on hybrid cars with the addition of thousands to its nationwide fleet, as well as special "hybrid branches" that will make it easier to rent one at 80 locations throughout the U.S.

The company said Tuesday it added about 5,000 hybrids to its fleet, including the Toyota Prius, Nissan Altima, Ford Escape and Toyota Camry. Now the company has more than 7,000 hybrids, in addition to another 2,000 of the gas-electric vehicles at its sister companies National and Alamo.

Enterprise has also designated 80 rental locations in 24 markets as "hybrid branches," which will have a greater proportion of hybrids that can be reserved online or by telephone. The hybrid branches are located in Los Angeles, San Francisco, Sacramento, Fresno, Calif., Orlando, Tampa, Albany, Ithaca, New York City, Rochester, Eugene, Ore., Portland, Ore., Austin, Dallas, Houston, Atlanta, Boston, Detroit, Minneapolis, Philadelphia, St. Louis, Seattle, and Washington, D.C.

The company had previously created eight E85/FlexFuel branches, which offer a higher concentration of flex-fuel vehicles in locations near E85 fueling stations.

The addition of the new hybrids propelled Enterprise to the top of the list of large U.S. alternative fuel vehicle fleets included in GreenBiz.com's just-released State of Green Business report.

Meanwhile, Wal-Mart added 26 new trucks to its fleet that use alternative fuels or hybrid technologies. The new vehicles include: a full-propulsion, duel mode diesel-electric Arvin Meritor; 15 trucks at its Buckeye, Ariz., distribution center that will be converted to run on reclaimed grease, while remaining trucks will run on 80/20 biodiesel; five trucks working out of a Southern California distribution center will operate on liquid natural gas; and five heavy-duty diesel-electric hybrids developed by Eaton and PACCAR will be deployed throughout the country.

Wal-Mart has improved the efficiency of its fleet by 25 percent between 2005 and 2008. It now plans to double fleet efficiency by 2015.

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Lawyer alleges price fix in Wal-Mart-Netflix deal

By KELLY P. KISSEL ,
Associated Press
02.04.09                                   
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A series of lawsuits filed across the country allege that Wal-Mart and Netflix benefited illegally when the world's largest retailer exited the online DVD rental business in 2005.

Lawyer Daniel Becnel of Reserve, La., complained in a lawsuit filed Monday in Baton Rouge that Wal-Mart (nyse: WMT - news - people ) and Netflix (nasdaq: NFLX - news - people ) improperly negotiated Wal-Mart's departure from the online video market that previously had only two major competitors, Netflix and Blockbuster (nyse: BBI - news - people ).

According to Becnel, Wal-Mart's presence drove down prices and Netflix suffered reduced profits. Wal-Mart would have suffered, too, if Netflix began selling DVDs, so the companies entered an improper agreement, Becnel says in the lawsuit, which alleges antitrust violations.

When Wal-Mart quit the online DVD rental business, it converted its customers' accounts to Netflix accounts. Netflix then began promoting Wal-Mart and Walmart.com as places to buy DVDs.

"Don't conspire to artificially raise the price to the consumer," Becnel said. The lawsuit says Netflix customers are paying artificially high prices and are entitled to refunds with interest.

Real-Time Quotes 02/10/2009 1:59PM ET WMT$47.64-3.33%NFLX$36.960.05%BBI$1.34-1.47%Get Quote BATS Real-Time Market Data by XigniteA Netflix spokesman said the the company does not comment on pending litigation. Wal-Mart said there was nothing wrong with its decision to stop renting DVDs.

"We made our own independent decision to exit the DVD rental business and our subsequent agreement with Netflix is entirely proper," Wal-Mart spokeswoman Michelle Bradford said in a statement. "We intend to defend vigorously our decisions regarding the products and services offered to our customers."

When it started renting DVDs online in 2003, Wal-Mart charged between $15.54 and $21.94 monthly, depending on how many videos were out at once. Netflix prices ranged between $13.95 and $39.95.

By May 19, 2005, when Wal-Mart left the online DVD rental business, most Wal-Mart customers were paying $12.97 monthly for the right to have two movies at a time while most Netflix customers were paying $17.99 per month for up to three titles.

Netflix currently charges $16.99 monthly for up to three titles - a dollar less than in 2005. Blockbuster charges $19.99 for three rentals at a time in a program that allows exchanges at local stores.

Becnel said the current rates are higher than they would have been if Wal-Mart had remained in the online DVD business.

"Defendants would not have entered into their Market Division Agreement absent an illegal, anticompetitive agreement not to compete," Becnel's lawsuit says.

Other similar lawsuits were filed in other jurisdictions, Becnel and Wal-Mart said Wednesday.

Copyright 2008 Associated Press. All rights reserved.

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Walmart Suspects Charged

By Jay Sorgi,
TMJ4
February 4th, 2009              
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GERMANTOWN - Prosecutors have now filed charges against two 17-year-olds accused of releasing a pepper spray-like substance in the Walmart on Appleton Avenue in Germantown.

Taylor Eppler and Anthony Carr are making their first court appearance this afternoon.

Police say they took the two into custody after the teenagers admitted to releasing pepper spray in the Walmart on Appleton Avenue, making 47 people sick.

"They talked about being in the store that day, and confirmed that they had a pepper spray type product that they released in the store," said Germantown Police Chief Peter Hoell said a press conference.

What they don't have is the reason why they did it.

"As far as motive, I'm not real sure," admitted Hoell.

"It certainly was no accident. It was definitely a criminal act."

Hoell remarked about how what the two boys admitted to doing affect dozens of people directly, and hundreds more indirectly.

"It had a pretty dramatic impact on a lot of people," said Hoell.

"It had an impact, not only on law enforcement, but a huge impact on police and fire. They were taken away from their communities to help us out, so their actions had a huge impact on a lot of agencies and a lot of people and families."

FBI officials joined Germantown Police and fire in the investigation of the incident.

The boys could be given a felony charge of recklessly endangering safety, along with a misdemeanor of disorderly conduct.

"It's troubling," remarked Hoell.

"It was a senseless act. There was no reason why they should have committed such an act on so many people.

"I can't speak for them, what their motivation was, but I don't know if they realize how many people they impacted, how many agencies they impacted, how many lives they impacted, especially the victims.

"We're going on three weeks since the incident, so you're talking about a fairly long period of time of people feeling that anxiety over some of the answers. We simply weren't able to provide them."

Hoell explained that it took surveillance video to find the boys.

"The surveillance video showed numerous people, especially in areas where we noticed people being affected," said Hoell.

"Eventually, we came across these two 17-year-olds who were obviously interviewed yesterday, and as a result of that interview, were taken into custody."

The process of finding the boys, and them admitting what they used, explains why it took so long to get an answer on what the substance was that they used.

"This was such a large-scale event," Hoell explained.

"We had multiple people feeling health effects of various degrees, some as severe as passing out and vomiting. It was a huge playing field as far as our investigation goes.

"One of the concerns we had was that they were getting sores in their mouths and their noses, and flu-like symptoms for a lengthy period of time.

"I'm sure it was troubling that we didn't' know what the substance was or what was released, so they're going day after day not knowing if their health conditions would improve, or (whether) it would get worse."

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Another Shoplifter Death at Wal-Mart

By Al Norman,
The Huffington Post
February 4th, 2009

Oh no, not again.                       [back to top]

The media in Missouri reported Tuesday that a 38 year old caucasian man, identified as Russell S. Palmer, died Monday night, February 2nd while struggling with two Wal-Mart security guards as the result of an alleged shoplifting incident.

The fatality was a repetition of a similar death-by-shoplifting scene that took place less than two months ago in North Myrtle Beach, South Carolina, when 53 year old Patrick Donovan died while being wrestled to the pavement by Wal-Mart employees. The retailer alleges that Donovan had stolen $393 worth of merchandise. Wal-Mart workers and one bystander held Donovan down, while one leaned on his back and another held down his arms and head. The police report says they told Donovan to stop fighting, and asked witnesses to call 911. By the time Donovan had stopped struggling, he had died.

A similar harrowing incident took place in August of 2005, when 30 year old Stacy Driver, of Cleveland, Ohio, a master carpenter and the father of a two year old son, died on from a heart attack while lying in a Wal-Mart parking lot. Driver was pinned down on the burning hot pavement by several Wal-Mart workers who accused him of shoplifting a package of diapers, a pair of sunglasses, a BB gun, and a package of BBs. After Driver was handcuffed, one eyewitness said a Wal-Mart employee had his knee on the man's neck and others were putting pressure on his back. "Finally the guy stopped moving and the employees got off him," the eyewitness told police. "They wouldn't call an ambulance. I looked at him and said, 'Hey, he's not breathing,' but one guy told me (Driver) was just on drugs."

The Kansas City Star described this latest death as the result of a 'scuffle,' which took place at Wal-Mart supercenter #234 on North Church Avenue in Kansas City, Missouri. Palmer reportedly "went limp and abruptly stopped fighting," while being subdued by Wal-Mart employees. The guards attempted to conduct CPR on Palmer, but he died later in the hospital.

The Kansas City police said that according to the suspected shoplifter's girlfriend, Palmer took drugs for an unspecified medical condition. One TV station claimed that Palmer was a crack cocaine user, with a prior arrest record for stealing.

Wal-Mart issued a statement extending its "deepest sympathies to the family."

According to one Wal-Mart employee handbook, workers are told: "Great caution must be used in any shoplifting situation. If you suspect someone is shoplifting, maintain eye contact with the suspected shoplifter and notify a member of management. DO NOT, in any circumstance, accuse or try to apprehend a shoplifting suspect on your own. You may assist in the apprehension if directed to do so by a member of management or Loss Prevention." Wal-Mart also tells its employees, "Wal-Mart takes a very stern view of shoplifting and will prosecute, to the fullest extent of the law, anyone caught shoplifting."

This is not a 'hands off' policy. It clearly suggests that Wal-Mart employees can "assist in apprehension," instead of leaving it to the police to handle. Wal-Mart likes to tell its workers to practice "aggressive hospitality," but it looks once again like Wal-Mart's workers have been a tad bit too aggressive.

These parking lot deaths would stop if Wal-Mart spent the time and money necessary to train its workers how to collect the information they need to help authorities make an apprehension. Deadly force is not appropriate, or needed, in these cases.

Regardless of whether you think every shoplifter is a drug dealer with a long rap sheet -- their life is worth more than a cheap pair of underwear, and they don't deserve to die face down in a Wal-Mart parking lot. Wal-Mart's "deepest sympathies" appear to be with loss prevention, over loss of life.

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Saint Martinville Walmart Now Property of the City

KLFY TV 10
February 3rd, 2009                      
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The old, vacant Walmart building in Saint Martinville is now one step closer to being revitalized. The building that has been vacant since October of last year is officially property of the city.

Mondays donation ceremony marked the title transfer with the city's Mayor and council members on hand.

Mayor Thomas Nelson, says it's a fair trade for the negative affects the store had on the city when it was open.

"We took a whipping. Our mom and pop stores weren't happy and it ended up running a lot of them out of business. They really took over the market" says Nelson.

The future of the building is still up in the air however, Mayor Nelson says the 44000 square foot building will most likely be divided up and transformed into a strip mall.

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Wal-Mart says its trucks 25 pct more efficient

Associated Press,
02.02.09                                               
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Wal-Mart Stores Inc. has increased the efficiency of its trucking fleet more than 25 percent since beginning a companywide environmental campaign in 2005, the giant retailer announced Monday.

The company said in a news release that it cut its trucks' energy use by using new technologies, improving its delivery routes and loading its trailers more efficiently.

Bentonville-based Wal-Mart (nyse: WMT - news - people ) said it will test new technologies and fuels for its trucks this year to improve on those advances and to reach the company's goal of doubling the fleet's efficiency by 2015.

The company said it has engaged Arvin Meritor, Peterbilt, Eaton Corporation (nyse: ETN - news - people ), International and others to develop new technologies.

This year, the company said, it plans to test several vehicles: diesel-electric hybrids from Arvin Meritor and Peterbilt, Peterbilt trucks that run on liquefied natural gas and trucks that will run on waste cooking grease from Wal-Mart stores or a biofuel blend.

Copyright 2008 Associated Press. All rights reserved.

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Second Suit Filed Against Netflix and Wal-Mart

By Chris Tribbey
Hme Media Magazine
Posted: 02 Feb 2009                 
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A second lawsuit has been filed against Wal-Mart and Netflix, alleging their 2005 agreement in which Wal-Mart turned over its online DVD rental business to Netflix was a “conspiracy” that aimed to build a monopoly for online DVD rentals.

Filed Jan. 26 in United States District Court in the Western District of Arkansas, on behalf of Chicago resident Marci Badgerow, the suit is nearly identical to one filed Jan. 2 against the two companies.

Both suits point to a January 2005 dinner between Netflix CEO Reed Hastings and John Fleming, then-CEO of Walmart.com, in which they allegedly discussed the DVD rental business. The suit goes on to say that when Wal-Mart agreed to shutter its online DVD rental service and give Netflix its customers, and Netflix agreed to promote Wal-Mart as the place to buy DVDs, the businesses created an unfair monopoly, and allowed Netflix to charge more than it would have for its rental service.

“Defendants’ illegal acts and practices have caused anticompetitive effects in the online DVD rental market,” the suit reads. “The subscription fees charged by Netflix to plaintiff, as well as the other members of the class, were maintained at artificially high and supracompetitive levels.”

The suit seeks class-action status, and seeks an unspecified amount of damages for Netflix subscribers since May 2005.

Netflix declined to comment on the suit. Michelle Bradford, a Wal-Mart spokeswoman said, “We made our own independent decision to exit the DVD rental business and our subsequent agreement with Netflix is entirely proper. We intend to defend vigorously our decisions regarding the products and services offered to our customers.”

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$21 Million Federal Suit Filed In Shoving Of Wal-Mart Greeter

The Chatanoogan
February 2nd, 2009
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A $21 million federal lawsuit has been filed against the city of Chattanooga and two city police officers in connection with a Christmas Eve incident in which a 71-year-old greeter was shoved to the floor at the Collegedale Wal-Mart.

Attorney Robin Flores asked $1 million compensatory damages in behalf of William Walker and $20 million in punitive damages against officers Kenneth Freeman and Edwin McPherson.

The suit charges that Detective Freeman used excessive force against the greeter and a customer who came to his aid. It says Lt. McPherson stood by and did not stop Det. Freeman.

It says Mr. Walker, who is 5'4" and wears a hearing aid, was required to check receipts of customers leaving the store if the security device sounded an alarm. It says the two officers were leaving with bags in their hands.

The complaint says the greeter asked the officers for their receipts. It says Lt. McPherson complied, but Det. Freeman walked around the greeter and continued toward the door. It says the greeter asked Det. Freeman to produce the receipt and he ignored him.

It says when the greeter touched him on the shoulder, he "suddenly and without any warning to plaintiff" turned on him and pushed him to the concrete floor.

Mr. Walker "struck the floor with the length of his body about five to six feet from the point of Freeman's push," it was stated.

It says Freeman stood over the greeter as he struck the floor.

The suit says as a result of the "physical assault" that Mr. Walker lost consciousness for a moment and defecated in his pants. It says his supervisor later allowed him to change clothing and get a clean pair of underwear.

The complaint says many members of the public came to the greeter's aid, including one "Good Samaritan" who "attempted to come between Freeman and the downed plaintiff, but Freeman pushed this person with such force as to drive him through the glass doors of the store."

Members of the public, including a security guard, then called police.

The suit says Lt. McPherson did not call for police help, did not render aid to the greeter and did not help the customer who was shoved.

The complaint says the city police department in the past has "shown favoritism toward certain officers who commit misconduct, but not others."

The suit says, "No reasonable officer or person would have acted in such a manner toward the diminutive and elderly plaintiff, to have stood over plaintiff once he was downed or have ignored his helplessness under the circumstances."

Attorney Flores said Det. Freeman "has a history of violence" against members of the public, claiming that "the most recent assault" was against attorney Lloyd Levitt.

The suit claims the city did not properly train the officers on handling such situations and says the city police department "has a history of failure to discipline or otherwise prosecute its officers who exhibit a lengthy history of complaints from the public."

It says:

Gary Davis was fired for misconduct and then rehired and promoted to sergeant before being arrested by federal authorities.

Steve Campbell was fired for his conduct in a beating and tasering of two men after a high-speed chase, then was re-instated.

Jeannie Snyder, "a former assistant police chief, her conduct in a Marion County wood, and a Georgia shopping mall led the city to take extraordinary measures to retrieve her from the wood and mall, and all comments about her conduct were attributed by the city and department as protected by HIPPA."

Jamie Riddle "was injured in an off-duty vehicle accident. The department disseminated her condition and did not give her the same privacy concerns as those of Snyder."

Senior members of the department "held a mandatory shift change meeting in 2004 wherein they directed their officers to use whatever means was at their disposal; to be 'warriors,' and if the officers made a mistake, that they 'had their backs.'

Officer Glen Lemley remains an officer "though he testified to a long history of prescription pain killer use for chronic back pain, testified that the city did not require him to undergo a second mental evaluation for his fitness as a police officer when the city hired him a second time, even though he put on his initial background application that he took medications for a nervous or psychological condition, testified that he was once arrested in Georgia for terrorist threats against a former wife, and he was found in contempt of court for harassing, harming or abusing a former wife.

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Bharti-Wal-Mart to start operations from Punjab

Tribune News,
February 2                     
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Bharti Wal-Mart Pvt Ltd (Bharti Wal-Mart), the joint venture between Bharti Enterprises and Wal-Mart Stores Inc, today announced that its wholesale stores would be called ''BestPrice Modern Wholesale'' and will start operations from Punjab this year.

The company, in a release here, said membership drive for its wholesale, business-to-business, cash-and-carry and back-end supply chain management operations in India had already begun. It expected that nearly 65,000 business owners would benefit from the membership.

Offering the advantage of best fixed and fair prices with unmatched convenience, choice, quality and hygiene, the stores will be open exclusively to business owners, not end-consumers, the release said.

The ''BestPrice Modern Wholesale'' store will be a one-stop shop that meets the day-to-day needs of traders, restaurant owners, hoteliers, caterers, fruit and vegetable sellers, general stores, other retail store owners, offices and institutions. — UNI

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Wal-Mart settles lawsuit in Md. death

By Associated Press
Monday, February 2, 2009                             
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Business & Markets ELKTON, Md. — An attorney representing the family of a Cecil County man says Wal-Mart has settled a lawsuit filed after the man received the wrong prescriptions from a Wal-Mart pharmacist and subsequently died.

Attorney Harry Barnes says it is "a favorable settlement," but says the details were sealed by a federal judge in Baltimore.

Sixty-six-year-old George Smith of North East died in March 2007. He became ill eight days after receiving prescriptions intended for someone else and died at Union Hospital in Elkton. Smith’s two adult children sued Wal-Mart last year for $3 million, citing their severe emotional suffering.

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Mass. court to weigh Wal-Mart discrimination case

Associated Press
February 1st, 2009                        
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BOSTON — The state’s highest court is set to hear arguments this week in the case of a former Wal-Mart pharmacist who claimed she was fired after asking to be paid the same as her male colleagues.

Cynthia Haddad filed the gender discrimination lawsuit after she fired in April 2004 after 10 years at the Pittsfield Wal-Mart.

In 2007, a Berkshire Superior Court awarded Haddad nearly $1 million in compensatory damages and $1 million in punitive damages. The company appealed.

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Wal-Mart to Open 60 New Stores in Chile, Peru in 2009

MVI
01 Feb 2009                             
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On January 31, two days after completing the purchase of D&S in Chile, Wal-Mart officially announced it would begin opening stores in Peru—along with close to 60 stores in the Chilean market.

Enrique Ostalé, the general manager of D&S, confirmed that the company will open 60 stores in Chile this year and begin entering markets in Peru. “We’ve begun a process, which has various stages, to enter that country. We will go step by step,” said Ostalé, explaining the company’s intention was to learn from Peru’s market and adapt to it. At least three Bodega A Cuenta stores will be opened in Peru this year. Cencosud has about 70% of the organized trade in Peru, and Interbank's Supermercados Peruanos has the remainder. Cencosud is Wal-Mart's main competitor in Chile.

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VIDEOS

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Fighting Wal-Martization 25min. (2005)

A new video by The Labor Video Project 25 min. (2005)

Wal-Mart is now the largest private employer in the United States and has the same impact that General Motors had nearly 50 years ago. This 26-minute video shows why working people and trade unionists are fighting back and what Wal-Mart has in store for the communities it is seeking to build stores in. "Fighting Wal-Martization" is a hard hitting documentary that looks at how the constant price cutting not only drives local small businesses out of the community but how this ends up driving down the living conditions of the very people who shop at Wal-Mart. The video also looks at the healthcare crisis and how Wal-Mart increases its profits by sending it¹s employees to public hospitals to get treatment thereby shifting costs back onto the taxpayer. This video can be used at union meetings, community meetings and on cable TV to get the message out about the Wal-Martization of America and what it means to every working person.

Please mail your check of $20.00 and order form to

Labor Video Project
P. O. Box 720027,
San Francisco, CA 94172

For more info: lvpsf@labornet.org, (415) 282-1908

Wal-Mart: The High Cost of Low Prices (www.walmartmovie.com)

Independent America: The Two Lane Search for Mom & Pop (www.independentamerica.net)

Big Box Mart (www.jibjab.com)

Garth Brooks Parody (www.walmartworkersrights.org)

"Is Wal-Mart Good for America?" Frontline, PBS Video, (www.pbs.org)
 

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BOOKS

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NON-FICTION

The Case Against Wal-Mart By Al Norman Raphel Marketing ruth@raphael.com

Wal-Mart: The Face Of Twenty-First Century Capitalism
Edited By Nelson Lichtenstein The New Press www.thenewpress.com

The Great Risk Shift: The Assault on American Jobs, Families, Health Care and Retirement
By Jacob S. Hacker Oxford University Press www.oup.com

War On The Middle Class: How the Government, Big Business, and Special Interest Groups Are Waging War on the American Dream and How to Fight Back
By Lou Dobbs Viking, a member of Penguin Group www.penguin.com

Momentum: Igniting Social Change in the Connected Age
By Allison H. Fine Jossey-Bass www.joseybass.com

Big-Box Swindle: The True Cost of Mega-Retailers and the Fight for America's Independent Businesses,
By Stacy Mitchell, www.beacon.org www.newrules.org

Wal-Mart: The Face Of the Twenty-First-Century Capitalism, Edited by Nelson Lichtenstein, Published by The New Press www.thenewpress.com

 The Bully Of Bentonville - How the high cost of Wal-Mart's Everyday Low Prices is Hurting America, By Anthony Bianco, Published by Doubleday
Email: specialmarkets@randomhouse.com

 How Wal-Mart is Destroying America (and the world), By Bill Quinn, Published By Ten Speed Press, Box 7123, Berkeley, CA 94707, www.tenspeed.com (pp. 163)

Slam Dunking Wal-Mart, By Al Norman, Published By Raphel Marketing, 12 S. Virginia Avenue, Atlantic City, New Jersey 08410, www.sprawl-busters.com (pp. 237)

The Great American JobsScam, By Greg LeRoy, Published By Barrett-Koehler Publishers, Inc., 235 Montgomery Street, Suite 650, San Francisco, CA 94104-2916, www.bkconnection.com (pp. 257)

Nickel and Dimed, By Barbara Ehrenreich, Published By Henry Holt and Company, LLC, 115 West 18th Street, New York, NY 10011, www.henryholt.com (pp.221)

United States of Wal-Mart, By John Dicker, Published By Jeremy P. Tarcher (Penguin Group usa), www.us.penguingroup.com (pp.257)

The Wal-Mart Effect, By Charles Fishman www.penguin.com

Megamall On The Hudson, By David Porter and Chester L. Mirsky www.trafford.com

FICTION

Death By Discount, By Mary Vermillion, Published By Alyson Publications, P.O. Box 4371, Los Angeles, CA 90078-4371, www.maryvermillion.com (pp. 275)

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