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Al Norman: Feds and Wal-Mart Team Up To Kill Small Grocers
HuffingtonPost.com
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As if Wal-Mart's impact on small
businesses were not devastating enough, now the giant retailer is
getting an assist from the Federal government.
Just before Christmas, The Family
Nutrition Store (FNS) in Topeka, Kansas, which is the only grocery store
in the area that solely serves people on the Women, Infant's and
Children's (WIC) program, shut its doors for good---a victim of Sam
Walton's store and Uncle Sam's bureaucracy.
Under the WIC program, the Federal
government provides grants to States for supplemental foods and
nutritional education for low-income women, and to infants and children
up to age five who are found to be at nutritional riskIn Kansas, the WIC
program is administered by the state Department of Health and
Environment. According to the Topeka Capital-Journal newspaper, The
Family Nutrition Store was killed off by the United States Department of
Agriculture (USDA), which adopted a regulation last year that cut
payments to certain stores participating in the WIC programSimilar
WIC-only stores in Kansas City, and Garden City, Kansas also shut down.
The Family Nutrition Store on
California Ave in Topeka, offered grocery items only to those
participating in the federal program. Wal-Mart supercenters, which
include a full-line grocery store, also sell WIC products---but they
sell to a much larger segment of the public as wellIn 2006, the USDA
changed the WIC rules governing payments to small, WIC-only grocery
stores ... Read the rest at HuffingtonPost.com
© 2007 HuffingtonPost.com, LLC
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Wal-Mart Abandons
Online Movie Downloads
By JON GAMBRELL
Associated Press
12.28.07
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LITTLE ROCK, Ark. - Wal-Mart Stores
Inc. has closed an online movie download service it launched less than a
year ago.
The retreat for Wal-Mart (nyse: WMT -
news - people ), which accounts for about 40 percent of all DVD sales,
follows the company's 2005 decision to abandoned efforts to build an
online DVD rental service. The world's largest retailer instead turned
its rental service over to Netflix Inc. (nasdaq: NFLX - news - people )
Wal-Mart still operates a music
download service and continues to sell CDs and DVDs at retail stores and
over the Internet for shipping by mail.
A message on Wal-Mart's video download
Web site said the store closed Dec. 21. The Web site said customers who
already have bought movies could continue to watch them.
In a statement, Wal-Mart spokeswoman
Amy Collella said the company closed the store after Hewlett-Packard Co.
(nyse: HPQ - news - people ), which provided the software running the
site, "made a business decision to discontinue its video download-only
merchant store service."
Wal-Mart did not say whether it would
attempt to start the service again using a different company's software.
Officials with HP did not immediately
return a request for comment Friday morning.
Launched in February, Wal-Mart's video
download service initially included 3,000 films and television episodes
for customers to buy and watch on their computers and in some cases a
portable device. However, the movies do not work on standard DVD players
or on the market-dominant iPod device from Apple Inc. (nasdaq: AAPL -
news - people )
Wal-Mart's departure leaves Apple's
iTunes store and Amazon.com Inc. (nasdaq: AMZN - news - people )'s Unbox
service among the options for movie downloads, which haven't garnered as
much consumer interest as online music sales. Last month, Time Warner (nyse:
TWX - news - people ) Inc.'s AOL also scrapped its pay-for-download
movie service.
Wal-Mart initially offered films from
$12.88 to $19.88 and individual TV episodes for $1.96 - 4 cents less
than the iTunes store. Wal-Mart's online store sold older titles
starting at $7.50, compared with the $9.99 charged by iTunes.
Many studios have resisted signing
deals with iTunes in part because of Apple's desire to sell movies at
one price. Studios prefer variable pricing such as Wal-Mart offered.
Copyright 2007 Associated Press. All
rights reserved.
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Wal-Mart Lobbies Above
Retail Value
By DIBYA SARKAR
Associated Press
12.26.07
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WASHINGTON - Wal-Mart's message to
America is "Save money. Live better." Its motto in Washington might best
be summed up another way: Spend more. Lobby harder.
The world's largest retailer spent
nearly $1.8 million in the first six months of 2007 and is on pace to
break the nearly $2.5 million it spent for all of 2006.
While overall spending on lobbying
appears to be slowing a bit, some industries, such as private equity,
and companies, such as Wal-Mart Stores Inc. (nyse: WMT - news - people
), are bucking the trend.
A relative newcomer to lobbying, the
Bentonville, Ark.-based company is making sure Capitol Hill knows it
doesn't take a discount approach to getting its message out about
everything from immigration to financial-services licensing.
Wal-Mart spent more than $4 million
lobbying in the past 18 months compared with the $6.6 million it
collectively spent in the prior seven years, according to federal
lobbying reports.
The retail sector as a whole isn't a
lobbying juggernaut in Washington, where defense, energy and
pharmaceutical industries write the big checks. For example, Target
Corp. (nyse: TGT - news - people ) spent $100,000 in lobbying expenses
in the first six months this year, Sears Holding Corp. spent about
$141,000, while defense contractor Lockheed Martin Corp. (nyse: LMT -
news - people ) spent $4.8 million in the same period.
Wal-Mart spokesman David Tovar would
not comment on specific legislation or issues. He said the company's
spending depends on the congressional agenda.
This year, that agenda included
immigration reform legislation that failed and a minimum wage-hike bill
that passed. The company has said higher wages will push up the cost of
goods for customers.
For their part, Wal-Mart lobbyists
pushed for tougher tactics against organized retail crime and for
legislation promoting electronic health records and other technology
aimed at reducing health-care costs.
But, Wal-Mart, long criticized for
having skimpy employee health-insurance benefits, also lobbied against
legislation that would allow employees to form, join or help labor
organizations. Its employees are not unionized.
In the financial services arena,
Wal-Mart dropped a bid for a bank license earlier this year after it was
strongly opposed by banks, unions and other critics. It continues to
push for the ability to offer other financial services, such as prepaid
Visa debit cards for millions of low-income shoppers who don't have bank
accounts.
Other issues listed on the disclosure
form included legislation tied to international trade matters, currency,
taxes and banking.
Brian Dodge, spokesman for the Retail
Industry Leaders Association, which counts Wal-Mart, Costco Wholesale
Corp. (nasdaq: COST - news - people ) and Target among its 60 retail
members, said in the last few years his group's lobbying efforts have
increased involving various issues, including product safety, the
environment, organized retail crime, health insurance and jobs.
While he couldn't speak specifically
about Wal-Mart, Dodge said the retail industry must deal with more
complex matters, such as imported products involving increased
government oversight by several agencies.
Wal-Mart, which established a
Washington shop about 10 years ago, spent just $140,000 in 1999. It
spent about a $1 million annually for the next several years, before
increasing its lobbying representation and funds in 2005 amid increased
criticism of labor practices and benefits.
"For a long time, Sam Walton really
didn't think that Wal-Mart should be involved in politics," said Lee
Drutman, a University of California at Berkeley doctoral student who is
writing his dissertation on lobbying. "That was part of his actual
belief so Wal-Mart was late to the game."
Copyright 2007 Associated Press. All
rights reserved.
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Ravaged Retailers
Weigh On Wall Street
Evelyn M. Rusli,
12.26.07
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Wall Street was stuck in the red on
Wednesday, as investors digested poor retail sales reports.
A last-minute surge by holiday
shoppers will not be enough to offset a weak a weak season. Mastercard’s
holiday spending index, which tracks sales from Thanksgiving to
Christmas, showed that spending ticked up 3.6%-- marking the smallest
increase in five years. Family Dollar Stores (nyse: FDO - news - people
) and department store Dillard's (nyse: DDS - news - people ) each
dropped more than 5%.
Meanwhile, the sector’s bellwether
stock, Wal-Mart (nyse: WMT - news - people ), shed 1.5%, or 72 cents, to
48.02.
But online retailer Amazon.com (nasdaq:
AMZN - news - people ) was up 3.0%, after the company said
better-than-expected Nintendo (other-otc: NTDOY - news - people ) Wii
and Harry Potter DVD sales, helped Amazon pull in the best holiday
season to date.
Wall Street is also following the
price of crude oil today. The price of a barrel jumped $2.18, to $96.31,
on rising tensions in the Middle East and expectations that Thursday’s
government report will show a decline in U.S. crude inventories. Energy
stocks were moving higher in late-morning trading. Exxon Mobil (nyse:
XOM - news - people ) was up 1.0%.
Leading solar energy issues were
advancing. Evergreen Solar (nasdaq: ESLR - news - people ) jumped 8.4%,
or $1.39, to $17.94, while LDK Solar (nyse: LDK - news - people ) surged
6.5%, or $3.17, to $51.85.
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RECALL
WALMART
Dear Friend,
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This year, Wal-Mart pulled millions of
recalled products off its shelves -- from toys to food to children's car
seats and cribs.
So what is Lee Scott, Wal-Mart's CEO,
doing to inform his customers about these recalls? He put a tiny link at
the very bottom of the Wal-Mart homepage. That's it.
Surely the biggest company in the
world can do better than that -- especially during the holiday season,
when Wal-Mart sells even more toys than Toys 'R' Us.
But since Mr. Scott won't be open
about Wal-Mart's product recalls, we are doing it for him.
Wal-Mart Watch has launched a new
site, Recall Wal-Mart, which is full of information about the recalled
products sold at Wal-Mart. It also has a tool that lets you send a
letter to Lee Scott about Wal-Mart's role in its customers' health.
Check out the site, and tell Mr. Scott
that when Wal-Mart has a recall, it should be the first thing on their
website, not the last:
http://www.RecallWalMart.com
Wal-Mart Watch believes there is a
reason Wal-Mart stocks so many recalled products and then buries the
news at the bottom of its website. Mr. Scott is putting the company's
interests ahead of its customers' safety.
Many of these recalls are the result
of the intense cost-cutting pressure Wal-Mart puts on its overseas
suppliers -- thousands of which are located in China, where safety
standards are much weaker.
Because of Wal-Mart's tremendous size
and influence, manufacturers are forced to meet its demands. When
Wal-Mart requires lower prices, that means sacrificing quality and using
cheaper materials, like lead paint.
To make matters worse, once the
dangers of these products came to light, Lee Scott failed to properly
inform Wal-Mart's customers about the recalls. That's just
irresponsible.
Visit Recall Wal-Mart and tell CEO Lee
Scott to put customers' safety first:
http://www.RecallWalMart.com
This isn't the first time Lee Scott
has put the corporation first instead of people.
For years, Wal-Mart has been skimping
on employee wages and benefits, so that less than half of its workforce
gets its health coverage from the company.
Wal-Mart also hurts local communities
and neighbors by forcing small businesses to shut down and spoiling the
local environment.
And Wal-Mart has continually tried to
bilk communities on the local tax bill, whether it is petitioning to
lower its property value or setting up dubious foreign arrangements to
take advantage of tax loopholes -- depriving communities of much-needed
revenue.
Wal-Mart Founder Sam Walton valued the
communities that supported his stores, and he valued honesty with his
customers. Wal-Mart has long since abandoned his original vision.
Again and again, Lee Scott has shown
that Wal-Mart's interests are more important than the people it serves
or the communities it calls home. Visit Recall Wal-Mart and tell the
retail giant you've had enough:
http://www.RecallWalMart.com
Sincerely,
David Nassar
Wal-Mart WatchPaid for by WalmartWatch.com,
a campaign of Five Stones and
The Center for Community and Corporate Ethics
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Dear JOHN,
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Please accept our thanks for making
this a year of positive change. Since you took action, the year ended
with a phenomenally successful 2007 Holiday Campaign.
This month, thousands of grassroots
supporters like you demanded a Senatorial investigation into Wal-Mart's
impact on America's product safety crisis. So many voices calling for
progress could not be ignored, and now we are beginning to see real
progress.
Though we continue to pressure the
Senate for substantive change, It's not enough that we demand action
from our elected officials. We must also hold Wal-Mart to its
responsibility to be a better company. Simply put, a company that makes
over $12 billion in profit every year has a moral obligation to be a
better employer and a better neighbor to us all.
This is the message we believe America
needs to hear before the Christmas holiday. So, we have featured it in a
brand new television spot we think you'll appreciate.
Watch the new TV ad, and forward it to
five friends
Wal-Mart rakes in over $21,000 in
profits every minute. Despite the enormous concentration of wealth in
Wal-Mart's hands, it continues to deny its employees affordable health
care, break child labor laws, and import 70% of its products from
communist China. That is, unless you continue to take action.
Join us as we teach Wal-Mart the true
meaning of giving, and of yuletide spirit. Wal-Mart must know that we
will not stand idly by while it fails to do right by the employees and
customers who gave the company its great wealth. Remember, there is
power in our message. When you spread the word, we gain the power to
make Wal-Mart give back to America.
View the new TV ad, and spread our
message to your family and friends
On behalf of everyone at of
WakeUpWalMart.com, please accept our thanks for another year of positive
change. You have our gratitude for everything you have done, and will
continue to do, to make Wal-Mart a better company.
And, of course, have a happy holiday
season!
The Team
WakeUpWalMart.com
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Senator Says Wal-Mart Sells Products From Sweatshops
By REUTERS
December 13, 2007
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WASHINGTON (Reuters) — A Democratic
senator said Wednesday that Christmas tree ornaments sold at Wal-Mart
Stores and other major retailers were made in a Chinese sweatshop
employing workers as young as 12 and others who work more than 100 hours
a week.
“There is virtually no enforcement
anywhere on these issues,” Senator Byron L. Dorgan of North Dakota said
at a news conference concerning the release of a study on Chinese
sweatshops that provide cheap goods for the American market. “Our
country needs to insist that our trading partners enforce their own
labor laws and respect international labor standards.”
The study was conducted by the
National Labor Committee, a human rights organization, and highlighted
conditions at the Guangzhou Huanya Gift company, an ornament maker in
China that employs 8,000 workers.
It found that some employees had been
paid as little as 26 cents an hour, half the legal minimum wage in
China, and that employees in the spray paint department had handled
potentially dangerous chemicals with little or no protection.
Efforts to reach Guangzhou Huanya for
comment were not successful.
Wal-Mart said it had started an
investigation immediately after receiving a copy of the report. “Through
our rigorous ethical standards program, Wal-Mart aggressively deals with
any allegations of improper conditions at our suppliers’ factories,” a
company spokesman said.
Mr. Dorgan said the report highlighted
a “serious trade problem” that has also been brought to the public’s
attention by recalls for millions of Chinese-made toys in recent months.
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Wal-Mart Raises
Stake in Seiyu to 95 Pct
By YURI KAGEYAMA
Associated Press
12.05.07
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TOKYO - Wal-Mart Stores has raised its
stake in money-losing Japanese retailer Seiyu to 95.1 percent, the
retailers said Wednesday, giving it managerial control of the chain and
solidifying its foothold in an intensely competitive market.
Wal-Mart Stores Inc. (nyse: WMT - news
- people ), the world's biggest retailer, already owned 50.9 percent in
Seiyu Ltd. It offered to buy outstanding shares to gain full ownership
in hopes of speeding management decisions for Seiyu's turnaround.
Since entering the Japanese market in
2002, Wal-Mart has been gradually raising its stake in Seiyu, the
fifth-biggest retailer here with about 400 stores nationwide.
But Wal-Mart has struggled to make
money in this market, where mall-style shopping is increasingly popular
although for everyday food and other needs, shoppers tend to go to
smaller neighborhood stores.
Still, the move puts to rest questions
about whether Wal-Mart may exit Japan after the retailer sold its
operations in Germany and South Korea last year.
"We are very pleased with the positive
response to this tender offer," Wal-Mart Vice Chairman Mike Duke said in
a statement.
"This successful result paves the way
to achieve our stated goal of full ownership of Seiyu, which will enable
Seiyu and Wal-Mart together to accelerate the delivery of long-term
benefits to our customers, the communities we serve, our associates and
our business partners," said Duke.
Under the 93 billion yen ($843.9
million) deal for more than 411 million shares, Wal-Mart paid 140 yen
($1.27) for each Seiyu share it didn't own. The offer ended Tuesday.
Wal-Mart said it aims to acquire all
remaining Seiyu shares, which will result in Seiyu's delisting from the
Tokyo Stock Exchange.
In Japan, Wal-Mart has stuck with the
Seiyu brand, familiar to Japanese, instead of using the Wal-Mart name.
But Seiyu has struggled amid intense
competition from smaller retail chains and major local companies that
are introducing Wal-Mart-style mega-stores and price-slashing. The chain
has continued to lose money since Wal-Mart struck the Japan partnership.
Seiyu has said it's expecting its sixth straight year of losses this
year.
Wal-Mart officials have introduced
large-scale distrubition centers that have proved successful in the U.S.
and have tried to adapt its global brands to the Japanese market.
But some analysts say Wal-Mart may
lack intimate knowledge of how the Japanese market works.
Jun Kawahara, analyst at Shinko
Securities Co. in Tokyo, says Japanese tend to frequent neighborhood
shops on their bicycles and engage in a great deal of
comparison-shopping at many stores - rather than the typical American
shopper who may drive to Wal-Mart for one-stop shopping.
"Japanese consumers are very
sophisticated. It's not enough that products are cheap," he said.
Wal-Mart also faces competition from
Japanese retail giants such as Aeon Co. that have adopted Wal-Mart-style
tactics, including in-house brands and supercheap prices, and have
succeeded in wooing suburban shoppers.
Seiyu's losses for the first nine
months of this year narrowed to 11.42 billion yen ($103.6 million) from
59.55 billion yen a year earlier, due to large asset write-down costs it
booked last year, according to Seiyu. Sales for that period slipped 0.7
percent to 700.93 billion yen ($6.36 billion).
Wal-Mart has about 3,000 stores
outside the United States. The Bentonville, Arkansas-based company has
more than 4,000 U.S. stores, serving more than 176 million customers
weekly.
Wal-Mart's growth has been helped by
aggressive overseas expansion in recent years, buying companies or
expanding its stake in partners in China, Brazil and Central America. It
signed a joint venture in India earlier this year.
Wal-Mart's third-quarter profit rose 8
percent on better-than-expected revenue of $91.95 billion, up nearly 9
percent on year.
Seiyu shares rose 3 percent in Tokyo
Wednesday to close at 137 yen ($1.24).
Copyright 2007 Associated Press. All
rights reserved.
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Bharti-Wal-Mart stores to focus on F&B first
Anandita Singh Mankotia
Tuesday , December 04, 2007
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New Delhi, Dec 3The first Bharti-Wal-Mart
convenience store is slated to open in Ludhiana in April 2008 and would
be modelled on the lines of French retailer Carrefour’s stores rather
than the international Wal-Mart format.
Following the Carrefour format, the
store would focus on food & beverage (F&B) rather than non-food
segments, as is the case with Wal-Mart stores globally. The moves mark a
strategic shift from Wal-Mart’s conventional strategy of building
loyalty for non-food items.
Wal-Mart believes in focussing on
non-food items, which have higher margins and yield higher billing than
F&B items, sources told FE. However, an internal study by the Wal-Mart
team revealed that a Carrefour approach is better suited to the Indian
market, where all sections would be distinctly segregated.
Bharti Retail, which will be operating
the stores, plans to roll them out only in Punjab, Haryana and NCR for
the first two years. The Bharti-Wal-Mart alliance is structured in a
manner whereby the two are in 50:50 joint venture for back-end cash &
carry wholesale stores, while front-end retail stores would be entirely
Bharti Retail owned. Wal-Mart, through its wholly owned subsidiary,
would provide the expertise to Bharti Retail for a fixed fee.
Though Wal-Mart will provide the
expertise on how to run and manage small stores, internationally the
company doesn’t even operate in this segment. The small stores will have
an area of 1,800-3,000 sq ft. Bharti Retail, which will be operating
three formats—convenience store, supermarket and hypermarket—will source
its merchandise from the separate Bharti-Wal-Mart joint venture.
In India, Wal-Mart is hoping that
Bharti Retail stores would register a growth of as much as 15% in the
first two years. In China, where Wal-Mart operates around 200 stores,
records the highest growth of 20%. Sources said Wal-Mart has suggested a
cautious strategy to Bharti, wherein the first two years focuses on
strengthening the back-end before ramping up the store count.
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Amazon
and Wal-Mart unwittingly team up against DRM
By David Chartier
ars
December 02, 2007
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As if DRM needed more of a hint to get
its coat and leave, Amazon is set to announce a promotional giveaway of
one billion MP3s during next year's Super Bowl. Billboard was first to
note that this announcement signals an all-out offensive on DRM, which
is made even more powerful by parallel pressures brought by Wal-Mart. In
a bid for more of the digital download space, the brick-and-mortar
retailer heavyweight has reportedly given an ultimatum to some of the
largest record labels, including Warner Music Group and Sony BMG Music
Entertainment, to provide more of their respective music catalogs in MP3
format (that is, without DRM) next year.
Related StoriesBring it on, iTunes:
Amazon readying DRM-free music service While the timing of these
consumer-focused drives from two separate retail giants is probably
nothing more than a coincidence, the market forces that prompted them
are a beacon for consumers who demand the choice they deserve. Wal-Mart
has actually sold digital music for years, though it's always been
wrapped in Microsoft's PlaysForSure DRM which doesn't work on an iPod or
even, ironically, Microsoft's own Zune. Things picked up a little when
Wal-Mart's online music store ditched DRM in August for rich 256KB MP3
files, though like Amazon's MP3 store, EMI and Universal have been the
only two labels with the foresight to give customers what they want. And
Universal is only testing the waters.
Like Wal-Mart, Amazon's MP3 store
launched in September with DRM-free tracks only from EMI and Universal,
but with 20,000 indie labels along for the ride as well. Disney-owned
Hollywood Records has also provided MP3s of about 40 of its artists,
including Queen, Indigo Girls and Hilary Duff, to these two retailers,
making it the latest in major labels to have made the leap to DRM-free
pastures.
As far as Amazon's 1 Billion MP3
Giveaway next year is concerned, participation will be pretty standard,
if not tedious and slightly more expensive than similar promotions in
the past. Each bottle of Pepsi and some of its other brands will contain
a coupon code under the bottle cap. Customers can then redeem five codes
for one free download from the Amazon MP3 store. Considering that
Apple's industry-leading iTunes Store has only gone as far as 100
million tracks during its own Pepsi + Super Bowl promotions, Amazon is
certainly wearing an ambitious hat for its first foray into giving music
away for free to promote its digital music download service. Of course,
by way of quick calculation, users will have to submit a total 5 billion
cap codes to get at those songs, and frankly, that's a load of codes.
That's somewhere in the neighborhood of 18 codes per US citizen.
With Amazon spreading the word next
year in a big way for DRM-free media and Wal-Mart trying to knock some
sense into more major labels, 2008 is already looking to be a strong
year for the fight against DRM.
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Big boxes of
scorn heaped on Duluth Wal-Mart
By EILEEN DRENNEN,
MICHAEL PEARSON,
Atlanta Journal-Constitution
December 2nd, 2007
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It may be one of the most routine
experiences in American life: heading to Wal-Mart to buy groceries, some
clothes or a bike.
It's so common that the world's
largest retailer expects to open a new U.S. store, on average, every
other day this year.
Neighbors of a Wal-Mart proposed for
Peachtree Industrial Boulevard in Duluth showed up in force in August
for a meeting at City Hall of the Zoning Board of Appeals.
Most open with little fanfare. Yet in
some places — such as Duluth — word that the giant is coming will shake
the community like little else can.
People flood City Hall. They shout.
They question the chain's impact on everything from local businesses to
the environment to its own employees.
In Duluth, controversy has raged since
Wal-Mart unveiled plans to build a 176,305-square-foot Supercenter on
Peachtree Industrial Boulevard.
People have packed meetings, carried
protest signs, collected signatures and fired off angry e-mails. The
City Council imposed a six-month moratorium on large-scale developments
to study their impact. The man who wants to sell 27 acres to Wal-Mart,
Jack Bandy, has sued Duluth and the city's Zoning Board of Appeals.
To Wal-Mart spokesman Glen Wilkins,
the company's commitment to Duluth is an example of its strategy of
building near customers.
To critics, the debate is tied up in a
larger conversation about issues such as "quality of life" and
"community." Underpinning it all is a frustration with Gwinnett County's
years of seemingly unstoppable development.
"Fatigue is a big part of it," said
Mark Williams, chairman of the Gwinnett Place Community Improvement
District, a group of businesses that tax themselves to pay for community
improvements. "We've had a lot of willy-nilly development, and people
are just tired of it."
Big, ugly crime magnets?
Debates about Wal-Mart seem to involve
mostly local issues. Foes say the stores are big and ugly, cause
traffic, threaten mom and pop stores and attract crime — all of which
Wal-Mart disputes.
In almost every case, argues Charles
Fishman, author of "The Wal-Mart Effect," a current of discontent with
the brand itself runs just beneath the surface.
As the most dominant retailer on the
planet, Wal-Mart has changed the way the world shops and given rise to
watchdog groups.
It's hardly the only retailer accused
of paying low wages or using questionable business tactics — charges
Wal-Mart denies — but it attracts a level of scorn rarely directed at
big-box retailers such as Target or Best Buy.
Why? Its size, Fishman said.
About $10 of every $100 spent at U.S.
businesses is spent at Wal-Mart. About 127 million Americans shop there
every week.
"They sell more toys than Toys 'R' Us.
More jeans than Levi Strauss. More groceries than anyone in the world.
More guns. More cigarettes. More eyeliner," Fishman said. "Whatever
business you're in, you wake up thinking about Wal-Mart."
Opponents get organized
You won't hear much talk about the
global economy from members of Smart Growth Gwinnett, a group that is
fighting the proposed Wal-Mart.
Their concerns are local. Many of them
live near the proposed store, about five miles from an existing Wal-Mart
on Pleasant Hill Road.
"We realized ... that we needed to put
some organization behind us," said Len Boyer, the group's vice chairman.
"We said, 'We can't just be a bunch of people yelling 'No Wal-Mart!' We
wanted to see what people out there had done similarly."
They learned about grass-roots
strategies and started collecting signatures and raising money. Soon
people in red T-shirts picketed City Hall and packed meetings about the
project.
They told anyone who would listen that
Peachtree Industrial Boulevard isn't industrial at all. In fact, they
counted about 1,000 upscale homes within three miles of the site.
"This isn't about Wal-Mart per se,"
Boyer said. "This is about big-box development. ... We're a proponent of
smart growth that's consistent with the look and feel of Duluth."
The site of the proposed Wal-Mart is
zoned for such a commercial development, so opponents have focused on
otherwise mundane issues.
In August, for example, a city planner
agreed to Wal-Mart's request to deviate from building codes related to
the pitch of the store's roof, material for exterior walls and
landscaping. Smart Growth Gwinnett appealed the decision to the Duluth
Zoning Board of Appeals — and won.
Yet others in Duluth expect a store on
the land.
"It may as well be something that I
shop at," said Ed Livingston, who lives nearby. "If it's not going to be
Wal-Mart, it will be something else."
Store has supporters
Controversy doesn't always dog
Wal-Mart.
"If I could, I would have it in my
backyard," said Joyce Price, who drives a county school bus and shops
weekly at the Wal-Mart on Pleasant Hill Road.
Supporters tend not to crowd into
public meetings, company spokesman Wilkins said, but many have told him
they would welcome a new Wal-Mart in Duluth.
In Dacula, the City Council approved
plans for a Supercenter with little fanfare. What's different there?
"Personally, I think it is a class
issue," said Tim Sullivan, a Buford real estate agent who tracks
land-use issues in northeastern Gwinnett. "There are more higher-priced
homes in Duluth than in Dacula. I believe most folks assume the Wal-Mart
customer is a bargain hunter because they are poor."
Issues of class often surface in the
Wal-Mart debate.
A University of California at Berkeley
study found that California Wal-Mart workers used more public assistance
than employees of other large retailers. A University of Missouri study
found that the company's presence cost jobs at nearby retail and
wholesale companies.
Wilkins said his company is unfairly
singled out for all kinds of misdeeds and is seldom lauded for all it
gives back to communities. He's particularly irked by the complaint that
Wal-Mart drives mom and pop stores out of business.
"Show me where a business has failed
because of Wal-Mart," Wilkins said. "If there's so many of them, it
shouldn't be so hard for people to come up with them. I see new
businesses
popping up next to Wal-Mart, not
closing."
Landowner's lawsuits
At the moment, the proposed store is
in limbo.
Bandy, the landowner, has sued
Duluth's mayor and City Council as well as its Zoning Board of Appeals.
The first suit seeks to invalidate the moratorium on large-scale
buildings. The second argues that the appeals board erred in siding
against Wal-Mart in three decisions related to building-design issues.
In the end, author Fishman predicted,
the store "will do what it has to do" to open. But he noted that
citizens' groups elsewhere have in-
fluenced store designs by working with
Wal-Mart.
"If I had people from Smart Growth
Gwinnett ask me to sit down and discuss this project again, and ensure
we would have a dialogue," Wilkins said, "I would do it in a minute."
[back to top]
A Wal-Mart Christmas Toy Story: Shopper Jailed For Removing Dangerous
Baby Toy
By Al Norman,
Hufington Post
December 2nd, 2007
[back to top]
DES ARC, AR - Every year a
Massachusetts-based non-profit corporation called W.A.T.C.H. (World
Against toys Causing Harm) publishes during the Christmas shopping
season, its annual "10 Worst Toys" list. On the 2007 "10 Worst Toys"
List is a product called "The Dora Explorer Lamp," made in China. It
looks more like a plastic cartoon character than a lamp. It retails for
just under $13 in the baby department at Wal-Mart, and comes with the
following manufacturer's warning in small print: "This is an electric
lamp, not a toy! To avoid risk of fire, burns, personal injury and
electric shock, it should not be played with or placed where small
children can reach it. HAZARD: Potential for Electric Shock and Burn
Injuries!" According to W.A.T.C.H., "This colorful lamp, based upon the
popular Nickelodeon 'Nick Jr.' character, is in the form of a smiling
plastic figurine. The packaging encourages children to 'light-up your
room with Dora!' Incredibly, children are further instructed to 'unplug
the product when leaving the house, when retiring for the night, or if
left unattended.' The manufacturer's proclamation that the Dora cartoon
character is not a toy has little meaning to small children, who may be
attracted to the figurine and thus be exposed to the potential electric
hazard." The consumer group says it lists toys "with the potential to
cause childhood injuries, or even death." According to W.A.T.C.H., their
efforts "have fearlessly exposed potentially dangerous toys to the
general public. As a result, children's lives have been saved." Buddy
Childress, a 72-year old termite control contractor, did not enter the
Wal-Mart Supercenter in Searcy, Arkansas thinking about saving a child's
life. Childress lives in the small community of Des Arc, Arkansas, with
his wife, Ann. He has owned his small business there for more than four
decades. On Thursday, November 30, Childress drove to Searcy, Arkansas
to do some shopping at Wal-Mart. When he went into the store, he says he
noticed the toy section and decided to have a look at it, "thinking I
might see some things our young grandchildren would like. Our
three-year-old granddaughter loves Dora the Explorer, a little
Nickelodeon cartoon character, so I looked over a shelf full of Dora
items." Childress' visit to the Wal-Mart toy section went south from
there. He narrates what happened next: "When I saw a little lamp made in
the form of a seated figure of Dora, I remembered that about a week
earlier, my wife and I had seen this item mentioned on CNN as being on
the 10 Most Hazardous Toys for 2007 list, issued by the organization,
W.A.T.C.H. I picked up the box and looked the lamp over. In very small
print on the bottom of the packaging was a warning: 'This is an electric
lamp, not a toy. To avoid risk of fires, burns, personal injury or
electric shock, it should not be played with or placed where small
children can reach it.' But it looked like a toy, and it was for sale in
the toy department." Childress called his wife and asked her to get on
the internet to make sure that the item he was looking at was identical
to the one he has seen listed on CNN. "Ann called me back in a few
minutes," Childress recalls, "and told me that she had read several
articles, some including photos of the lamp. She told me she'd learned
that inside the packaging were instructions to 'unplug the product when
leaving the house, when retiring for the night, or if left unattended.'
There was no doubt that the item on the Most Dangerous Toys list was the
same one for sale at Wal-Mart." Childress watched as a woman with two
small children picked up the lamp and started to put it in her shopping
cart. "When I told her what I'd just learned she thanked me and put the
item back on the shelf," Childress explains. "I then picked it up and
went to show it to the store manager, thinking he would be glad to learn
how dangerous it was and would remove it from the toy shelves." Instead,
the manager told Childress, "Well, you can hear anything on CNN, and
just because something's on the internet doesn't mean it's true."
Childress asked the manager to check out the internet information for
himself, but he refused. The manager said that it wouldn't make any
difference -- he could only pull items off the shelves if they were on a
list issued by Wal-Mart's corporate headquarters. Childress then
purchased one of the two Dora lamps on the toy shelf, left the store,
and started home. "I thought maybe I could show it to some newspaper
editors in nearby towns," Childress reasoned, "hoping they might write
something to warn people away from buying it." But as he drove home,
Childress kept thinking about the dangerous lamp that was still sitting
on that Wal-Mart shelf in Searcy. "I was picturing the family who'd
almost bought one when I was there," he confesses. "I also decided I
should tell the manager that if Wal-Mart was going to keep selling this
obviously hazardous toy -- which wasn't a toy, but was for sale in the
toy department -- I felt I'd have to pursue other means of getting the
word out about it. Maybe then he would do something." Childress turned
his car around, drove back to Wal-Mart, and approached the manager
again. "He said he'd called Wal-Mart's headquarters after I'd left, and
they'd told him there was nothing they would do. Then I told him I felt
this was willful child endangerment, and I'd have to go to -- and write
to -- area newspapers. He said, "Well, if you do that, you'd better be
sure all your T's are crossed and your I's are dotted, because you will
be facing legal action." Buddy Childress then circled back to the toy
department to see if the Dora Lamp had been sold. It had not. "But a
little girl was reaching for it," Childress recalls, "and telling her
mother she wanted it. I warned them also -- and they didn't buy the
lamp." Having thwarted two sales, Childress considered buying the second
lamp himself -- but he knew Wal-Mart would just bring out more from
their stockroom. "I couldn't keep people from buying the lamp from the
Searcy Wal-Mart -- let alone from all the other Wal-Marts in Arkansas
and all across the country," Childress figured. "I felt I had to do
something that would make a statement and focus attention on this
extremely dangerous toy." Childress dialed 911 on his cell phone, and
was connected with the Searcy Police Department. He told the officer who
answered the phone where he was, what had happened in the toy
department, and that he intended to take the lamp outside the store and
destroy it. "He tried to get me not to do it," Childress admits, "but I
told him I was going to, and that I'd be waiting outside the store for
the police to arrive. I expected to be arrested there, and taken to the
police station." Childress says he took The Dora Explorer Lamp outside
the store to the sidewalk. "I destroyed it," he says, "I stomped on it,
and then waited for the police to arrive." Before the cops arrived, five
or six Wal-Mart employees came out of the store and surrounded
Childress. They ordered him to accompany them back inside the store to
an office in the back. "I told them I would go, but I would rather wait
until the police got there. Their reply was, "You're coming with us
now." Back inside Wal-Mart, employees took Childress' cell phone away
from him, and refused to let him make any calls. "They put some papers
in front of me and instructed me to sign them," Childress says, "but I
refused." A Searcy policeman came in, and the Wal-Mart people said they
were charging Childress with shoplifting. "The officer was very
courteous and professional, and told me procedure required him to put me
in handcuffs." Childress says he then had to take one of the most
humiliating walks of his life from the back of the store, out through
the front door, handcuffed and escorted by the police. In retelling the
moments of his arrest, Childress' voice is unsteady, and choked with
emotion. At the White County Detention Center, Childress was
fingerprinted, and a 'mug shot' was taken ("A very unattractive one, but
maybe that was unavoidable"). He was searched and questioned, and given
a ticket with SHOPLIFTING written in large print. The policeman who had
arrested him offered to take Childress back to his car, which was still
parked at Wal-Mart, but by the time he was free to go, the cop had to
leave. "By the time I got home," Childress sighs, "I had begun to
realize the possible repercussions of people who knew me reading in the
newspaper that I'd been arrested for shoplifting. They wouldn't have any
way of knowing that my motive in taking something out of the store had
been to alert parents about a toy which could hurt their children or
cause a house fire. Without an explanation, it would sound like I was
stealing." "I have lived in Des Arc most of my life," Childress
explains, "as has my family for many generations. My children and
grandchildren live nearby. I have friends and customers all over the
state. I went to college in Searcy, and many of my old friends and
former classmates live there. My wife and my sons understand what
happened and have been totally supportive. So far, I haven't told anyone
else. But I know that the story of my arrest for shoplifting from
Wal-Mart will be in the Searcy, Des Arc, and other area newspapers
within the next few days." Childress says he took Dora Explorer out of
Wal-Mart for two simple reasons: "First, and most importantly, I hope it
will act as a deterrent to shoppers everywhere this story appears, to
not buy this item from Wal-Mart, or any other retailer. Wal-Mart is
continuing to sell this item despite the many warnings about it. You
have to wonder how many other items on store shelves fall into this
category? Secondly, I want to tell people who know me exactly what I did
and why I did it. I hope I can do some damage-control regarding my
business and my reputation. It isn't my nature to be a 'protestor.'" The
case of Wal-Mart Stores v Buddy Childress will be heard in an Arkansas
court on December 13th. It is a special Wal-Mart Christmas "Toy Story"
from the retailer's home state that you won't see on any of their
holiday ads. "I have never before committed an act of civil
disobedience," Buddy the Toy-Destroyer says. "But I have thought a lot
about all this, and regardless of the consequences -- if I had it to do
over -- I would still do what I did."
[back to top]
Wal-Mart
Protesters Picket Mexico City Store
By Adriana Arai ,
Bloomberg News
December 2nd, 2007
[back to top]
Protesters picketed a Wal-Mart store
in Mexico City to show support for employees who are trying to form a
union at the company, the nation's largest employer.
The protesters, who included labor
activists and union members from other industries, urged shoppers to
boycott Wal- Mart for the day. Wal-Mart de Mexico SAB, two-thirds owned
by Bentonville, Arkansas-based Wal-Mart Stores Inc., has about 160,000
workers in the country.
``Wal-Mart in Mexico is no different
from Wal-Mart in the U.S.,'' said Maria Pantoja, a Mexico City
representative of Global Exchange, a San Francisco-based group that is
helping local workers organize. She said the company pays low wages and
drives small shops out of business with its low prices.
``They're missing the point, said
Antonio Ocaranza, communications director for Wal-Mart de Mexico, as he
looked at the protesters handing out pamphlets at Plaza Universidad, in
southern Mexico City. ``We create jobs, we pay taxes, we compensate our
workers better than average.
In the U.S., Wal-Mart faces more than
70 suits in which it is accused of wage-law violations. Politicians
including presidential candidate Barack Obama, as well as religious,
environmental and labor groups have criticized the company over its
wages, benefits and expansion plans.
Wal-Mart de Mexico issued two written
statements in response to today's demonstration, including a nine-point
fact sheet with salary information, number of jobs created, number of
female employees and investment in training. It said its lowest salary
is at least 18 percent higher than the minimum wage.
Criticism of Calderon
Protesters gathered at the Plaza
Universidad Supercenter, Sam's Club and other Wal-Mart stores today with
political messages that included criticism of President Felipe
Calderon's free-trade policies.
Ernesto Palestino, 52, wheeled his
cart out of the Supercenter along with his wife and son as protesters
gathered around the store exit.
``They have good jobs and pay
benefits, he said. ``I have nothing against the store. He reserved his
criticism for the government, saying it ``sells our oil and lets foreign
companies send all their profits overseas.'' Wal-Mart de Mexico's
salaries, benefits and work conditions are similar to those of other
retail chains in Mexico, which take advantage of labor laws that favor
employers, said Alfonso Bouzas, who has researched labor laws for 33
years for Mexico's National Autonomous University.
[back to top]
VIDEOS
[back to top]
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)
[back to top]
[back to top]
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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