|
Wal-Mart
Shakes Up Management: Advertising Age
By Reuters,
January 31st, 2007
[back to top]
CHICAGO (Reuters) - Wal-Mart Stores
Inc. is expected to move the chief executive of its U.S. namesake stores
to an international position and replace him with the head of its Sam's
Club warehouse club unit, Advertising Age reported on Tuesday, citing
people close to the company.
The latest round of recent or pending
management moves at the world's largest retailer is expected to involve
10 to 15 people, according to one person close to the company, the trade
publication said in a story on its Web site.
Eduardo Castro-Wright, CEO of the
Wal-Mart Stores Division in the United States, will move to an
international post, though the level of that post was not clear,
Advertising Age said.
Sam's Club's CEO Doug McMillon would
replace Castro-Wright, the publication said.
Advertising Age said that executives
were difficult to reach as they gathered in Kansas City, Missouri for an
annual year-end meeting with supplier executives.
Last week Wal-Mart, which is trying to
boost sales after a lackluster holiday season, named John Fleming as its
chief merchandising officer. Fleming had previously led Wal-Mart's
marketing division.
The Advertising Age report mentions an
internal memo that was distributed last week. A Wal-Mart spokeswoman
told Reuters that the company's internal communications concerned John
Fleming's position and some other related changes. Wal-Mart publicly
announced those changes on January 24.
When asked if the memo was related to
Eduardo Castro-Wright, the spokeswoman replied "Absolutely not."
She added that Wal-Mart's policy is
not to comment on rumors or speculation about personnel matters.
Castro-Wright joined Wal-Mart in 2001
as president and chief operating officer of Wal-Mart de Mexico, and then
went on to be CEO of Wal-Mart de Mexico before moving to the Wal-Mart
Stores division.
Meanwhile, WakeUpWalMart.com, a
union-funded group, issued an open letter to Wal-Mart managers on
Tuesday seeking to discuss various pay and benefit issues with them.
In the letter, the group suggests that
Wal-Mart's executives, led by Castro-Wright, have implemented "a series
of new anti-Associate policies."
"Sadly, these anti-family and
anti-Associate policies, concocted by Mr. Wright and a bunch of
consultants and accountants who have never run a store, have not only
hurt Wal-Mart Associates and their families, but have even negatively
impacted Wal-Mart's sales," the group wrote.
[back to top]
Worry
over Wal-Mart wooing tree huggers with organics
Carly Weeks
CanWest News Service
Wednesday, January 31, 2007
[back to top]
OTTAWA - Canada's new organic food
regulations won't come into effect for another two years, and even when
they do, the government may lack the teeth to enforce them or stand up
to corporate giants jumping on the organic bandwagon, critics are
warning.
''There probably is real cause for
concern in terms of the trend in the food industry to lower safety
standards in pursuit of profits,'' said Michael McBane, national co-ordinator
of the Canadian Health Coalition.
Organic food is becoming more popular
than ever and there is worry some companies looking to make money
without following the long-standing principles of the industry will push
their product on the Canadian market.
Large companies such as Wal-Mart,
Coca-Cola, Kraft Foods and General Mills have all entered the organic
market, raising questions about the implications of corporate domination
in what was once considered a fringe market reserved for tree-huggers
and hippies.
Although most organic producers follow
the traditional principles of the industry, some major players may try
to import food made from countries that don't follow Canada's organic
standards, said Cathleen Kneen, former editor of the BC Organic Grower
and active member of the organic community.
''Whether Canada will go head-to-head
with Wal-Mart for compliance here is a very interesting question,'' she
said.
The federal government passed
regulations in December which took about a decade to create.
The new rules, which take effect in
December 2008, set out a number of changes, which include:
* Anyone who wants to sell a product
as organic has to apply to a nationally recognized private-sector
certification body, which inspects and evaluates the products. Organic
certification remains in effect for one year.
* Certified organic products will have
a uniform label that says ''Canada Organic.'' Multi-ingredient products,
such as chips, have to be at least 95 per cent organic to have the
label. Products with ingredients that are between 70 and 95 per cent
organic must prominently display the percentage. Imported products with
the ''Canada Organic'' label must display the country of origin.
* The CFIA can suspend the
accreditation of an organic certification body if it doesn't comply with
the regulations.
It's unclear whether federal
inspectors will be able to do thorough checks to ensure organic food on
shelves is the real deal when the rules come into effect.
The new Canada Organic Office, which
is part of the Canadian Food Inspection Agency, will oversee the organic
industry. The office hasn't decided how it will operate, but one option
is to hire 12 inspectors to do market checks and look for organic fraud
at the retail level. Another option is to add that responsibility onto
the duties of the food agency's regular inspectors.
The office's Ottawa headquarters will
employ five or six people in administration and managerial roles.
The entry of some large companies have
created a pressing need for governments to enforce their organic rules
and be vigilant about ensuring products on the market with an
''organic'' label meet the national standards, said Mark Kastel, senior
farm policy analyst at the Cornucopia Institute, a research group based
in Wisconsin.
''There are companies that are now
doing the minimum to try to conform and to stretch every corner,
creating loopholes.''
Although the U.S. government passed
organic regulations several years ago, it hasn't stopped some rogue
companies from skirting the rules and refusing to live up to the
long-standing principles that define organic farming.
Some companies that sell products
labelled as organic actually run large factory farms, while others
pressure the government to allow them to use synthetic chemicals, he
said.
For instance, one major issue
surrounds the fact U.S. regulations state livestock must have ''access
to'' pasture. Since the rules don't explicitly state the duration or
amount of pasture, some companies crowd animals or limit the access
animals have to the outdoors, Kastel said.
That's why federal officials must be
vigilant about what it means to be called ''organic'', he said.
''It's just literally a handful of
mega-farms and they're corporate compliance certifiers that have caused
this problem and that's what has to be guarded on both sides of the
border so these things aren't exploited,'' he said.
While organic food has become a staple
of mainstream grocery stores across Canada, it will be two more years
before consumers can be assured what they're buying is the real thing.
That amount of time is needed to
ensure everyone, from farmers to retailers to certification bodies, have
time to make the transition to the new standard.
© CanWest News Service 2007
[back to top]
Wal-Mart denies
new scheduling cuts hours
Critics cite memo
saying employees could work less if they limit availability
The Associated Press
Jan 30, 2007
[back to top]
KANSAS CITY, Mo. - Wal-Mart’s
union-backed critics released a company memo Tuesday saying that a new
scheduling system could cut hours for individual workers, but Wal-Mart
said the document was outdated and the new system is working fine.
WakeUpWalMart.com obtained a 2006
briefing packet for store managers on plans for a new computerized
scheduling system aimed at better matching staff levels in Wal-Mart
stores to peak crowds of shoppers.
Unions and other critics have said the
centralized system, which analyzes an array of data to keep track of
customer demand and generates schedules based on that, requires too much
flexibility from Wal-Mart’s more than 1.3 million U.S. workers.
The briefing document, released by
WakeUpWalMart during an annual meeting of Wal-Mart store managers in
Kansas City, instructs managers to tell staff that workers who are
unwilling to be available at peak evening and weekend times could wind
up with fewer hours or drop to part time from full time.
Bentonville, Ark.-based Wal-Mart
Stores Inc. said the document was a briefing paper from a pilot phase of
the program last summer.
The new system has since been rolled
out to all cashiers and customer service personnel, and experience has
shown that employees are not losing hours, Wal-Mart spokeswoman Sarah
Clark said.
“Our full-time staff is working pretty
much the same days, the same approximate weekly hours, and within one to
two hours of the same times as before,” Clark said.
Clark said Wal-Mart employees had
shown support for the need to have more staff at peak times to take care
of customers.
The pilot phase ended with a decision
to allow local store managers to make last-minute changes in schedules
based on individual needs, something that was not initially planned,
Clark said.
“In fact, we’ve seen such significant
improvement in our customer’s perceptions of their checkout experience,
and such great acceptance by our associates (employees) to the
scheduling program enhancements that we’ve encouraged our managers to
continue to do modifications as needed to best meet the needs of their
associates and customers,” Clark said.
Chris Kofinis, spokesman for
WakeUpWalMart.com, said the briefing document contradicted Wal-Mart’s
public statements that the new system would not cut worker hours.
“Wal-Mart has lied to its own workers
and the American people because they didn’t want anybody to know the
truth about the terrible effect this policy will have on its workers and
their families,” Kofinis said.
The new scheduling system requires
employees to fill out a form with the hours and days they are willing to
work, as well their preferred hours within that range and any regular
exceptions such as classes or regular medical appointments.
The briefing packet includes that
form, which encourages workers to be as open as possible during peak
evening and weekend hours and adds, “Limiting your personal availability
may restrict the number of hours you are scheduled.”
In talking points for store managers
addressing employees, the document says, “If you have restricted your
personal availability to hours that don’t fall within peak customer
traffic periods, it is likely that you will see a decrease in your
number of scheduled hours on the draft schedules, and that could even
impact your Full-Time status.”
The talking points go on to say
managers will work with employees in an effort to fix the problem and
add that managers should remain involved in finding a solution, such as
moving the worker to a different job.
Wal-Mart tested the new scheduling
system at a number of stores last year before adopting it for cashiers
and customer service employees. It plans to adopt the system for all
remaining employees at its U.S. stores this year, Clark said.
© 2007 The Associated Press. All
rights reserved.
[back to top]
Walmart may sell energy to
Texans
United Press International
Earthtimes.org
2007-01-30
[back to top]
AUSTIN, Texas, Jan. 30 (UPI) U.S.
big-box store Wal-Mart announced plans to install solar panels and
windmills at some stores, as well as the creation of its own electricity
company.
The company's environmental goals also
include selling 100 million compact corkscrew fluorescent light bulbs
this year, the Dallas Morning News reported.
The electricity company, Texas Retail
Energy, will supply Wal-Mart's stores with cheap, wholesale power. About
$15 million will be saved by this endeavor annually, also giving the
company control over its utility bills.
The infrastructure of the energy
company has grown, so TRE can now sell electricity to Texas consumers.
High prices for power in Texas and an open market could lead TRE to be a
local competitor.
We have considered it. Whether or not
it will ever materialize, we don't know. It boils down to whether the
customers and suppliers want that, said Chris Hendrix, general manager
of Texas Retail Energy. Short-term, it's out of our scope. Longer-term,
anything's possible.Many retailers have begun installing software to
control store lights and temperature to help cut bills. While many
big-box stores have taken energy issues to the corporate level, Wal-Mart
is the first to buy energy wholesale.
Copyright 2007 by United Press
International
[back to top]
WakeUpWalMart.com Launches First National Outreach Effort Targeting
Wal-Mart Managers and Wal-Mart Associates
Group Releases
'Open Letter' to Wal-Mart Store Managers Attending National Conference
in Kansas CityGroup Announces 'Management/Worker' Outreach Program
Initially Targeting Over 350 Stores and 100,000 Employees
PRNewswire-USNewswire
[back to top]
KANSAS CITY, Mo., Jan. 30 /--
WakeUpWalMart.com, America's campaign to change Wal-Mart, held a press
conference today in Kansas City to announce a major new nationwide
effort to reach out and target Wal- Mart store managers and Wal-Mart
Associates in a coordinated program to recruit their support to change
Wal-Mart into a better employer.
The new campaign initiative from
WakeUpWalMart.com, titled "Working Together, We Can Change Wal-Mart,"
was officially launched in Kansas City -- the site of Wal-Mart's annual
7,000-person Store Managers Meeting. As of today, an estimated 2,000
Wal-Mart Store Managers had received the "open letter" from
WakeUpWalMart.com. The letter points out the "moral dilemma" Wal- Mart
store managers face in being forced to implement store policies they
know to be "unfair and hurt the very people who work so hard to make
Wal-Mart a success."
"By working together, we sincerely
believe that Wal-Mart Associates, Wal- Mart Managers, and
WakeUpWalMart.com can be an incredible force for change that will help
return Wal-Mart to Sam Walton's vision where people and country come
first," said Paul Blank, campaign director for WakeUpWalMart.com.
Beginning this week, as part of this
new initiative, WakeUpWalMart.com began a new outreach effort to reach
an estimated 100,000 Wal-Mart workers/managers at over 350 Wal-Mart
stores across the country. Managers and Associates will be invited to
join a nationwide conference call on February 8, 2007 to discuss the new
changes that will be implemented as a result of the Wal-Mart managers
meeting.
At the press conference in Kansas
City, local community and faith leaders, including Reverend Doctor
Ronald L. Faust, were joined by a current Wal-Mart worker, Kory Uselton,
and leaders of WakeUpWalMart.com to discuss the company's recent
adoption of a series of anti-family policies -- including salary caps, a
restrictive attendance policy, the elimination of low deductible health
care plans, and open availability scheduling -- that have negatively
impacted Wal-Mart workers and their families. The speakers at the press
conference implored the managers attending the Wal-Mart conference to
"not let a small misguided group of executives use you to implement
immoral and hurtful policies."
WakeUpWalMart.com is a nationwide
group with over 310,000 supporters which has garnered national press
coverage and political support from such leaders as Sen. Barack Obama
and Sen. John Edwards. The goal of the group is to change Wal-Mart into
a moral employer and return the company to Sam Walton's vision where
people and America come first.
A copy of the open letter to Wal-Mart
Managers is available by request. WakeUpWalMart.com
CONTACT: Chris Kofinis,
+1-202-486-6422, for WakeUpWalMart.com
[back to top]
Reliance promises to be ‘formidable’ rival to US giant Wal-Mart
AFP
1/30/2007
[back to top]
NEW DELHI India's top business group
Reliance promised yesterday to be a "formidable" competitor to US giant
Wal-Mart as both move into India's lucrative and massive retail sector.
Wal-Mart, the world's largest
retailer, teamed up late last year with India's Bharti Enterprises, the
nation's top private phone firm, to start a nationwide store chain
rivalling Reliance's huge home-grown supermarket bid. "We will be
formidable competition in India," said Raghu Pillai, Reliance Retail's
operations president, as the company opened nine western-style "Reliance
Fresh" supermarkets in India's capital region.
The new stores are part of a
cross-country retail rollout that began last November in southern India.
The retail foray comes as companies
seek to tap India's increasingly affluent middle class, estimated at 300
million at least in what commentators have dubbed the "great Indian
retail gold rush".
"Wal-Mart has the advantage of
creating a larger-than-lifesize track record (in the US) but I'm not
sure in other parts of the world that holds true," said Pillai, pointing
to its experience in South Korea and Germany.
"They didn't flatten any competitors,"
he said.
Last July, Wal-Mart Stores announced
it was getting out of Germany's cut-throat retail market and selling its
85 stores to a German retailer, incurring a loss of $1bn.
The move came two months after
Wal-Mart sold its South Korean stores in what was an unusual pullback by
the retailer from a breakneck global expansion spree.
In both countries, Wal-Mart did not
appeal enough to domestic tastes and faced fierce competition from
Korean retailers.
However, it is still faring well in
many other foreign nations, especially in Canada, Mexico, Brazil and
Britain.
Reliance, which has opened 49 stores
so far in different parts of India, has said it aims to have 4,000
stores by 2011, with an annual sales target of $25bn.
It plans to invest $5.5bn to $7bn on
its retail venture over the next few years.
Bharti Enterprises has said it will
invest about $7bn in its project by 2010 and set up 200 large stores and
hundreds of smaller ones. The government still bans foreign retail
chains from selling directly to consumers but they are using a backdoor
to enter the market by starting wholesale and sourcing firms which
supply a local retail partner.
India's 15-million dusty, chaotic
"mom-and-pop" corner stores are fearful that competition from the giant
retailers, with their air-conditioned stores and plastic-wrapped
produce, will drive them out of business.
But Pillai insisted that India's
$300bn retail market "is big enough" for them to survive in the light of
India's eight-to-nine percent economic growth, which he said was rapidly
expanding the consumer pie.
"The traditional and modern retailers
will co-exist very peacefully because the market is growing by an
explosive amount," he said.
Pillai added that Reliance's retail
plans will create "over 500,000" new jobs by 2010 and "two to three
times that number of indirect job opportunities" in India where chronic
unemployment is rife.
"The retail business in India is
currently at the point of inflection," said Arvind Singhal, the chairman
of retail consultancy Technopak Advisors.
Retail sales will more than double to
hit $637bn by 2015, of which the organised retail segment would get a
$65bn-to-$75bn share or 16 to 18 per cent of the total, up from three
percent now, he forecasts.
[back to top]
Ruling That Maryland Law Requiring Wal-Mart To Increase Health Benefits
Violates ERISA Could Affect California Proposal
Kaiser Daily Health Policy Report
30 Jan 2007
[back to top]
A federal appeals court ruling against
a Maryland law that would have required large employers to expand worker
health benefits could impede California Gov. Arnold Schwarzenegger's (R)
universal health proposal, the Los Angeles Times reports (Lifsher, Los
Angeles Times, 1/25). Schwarzenegger's proposal, announced earlier this
month, contains a provision that would require employers with 10 or more
employees to offer health insurance for workers or pay a fee of 4% of
payroll to a state pool that would help workers purchase coverage, with
the amount that they pay based on income (Kaiser Daily Health Policy
Report, 1/9). The Maryland law, enacted on Jan. 12, 2006, would have
required employers in Maryland with 10,000 or more employees to spend at
least 8% of payroll costs on health care or contribute to a state fund
for the uninsured. Wal-Mart was the only employer in Maryland that the
law would have affected (Kaiser Daily Health Policy Report, 1/18). In
its ruling, the appeals court cited the 1974 Employee Retirement Income
Security Act, which is intended to "help employers avoid a spate of
conflicting state laws -- with different levels and types of worker
benefits," the Times reports. Attorney Mark Johnson, a national expert
on ERISA, said he expects that Schwarzenegger's plan -- if it is
challenged in court -- would violate ERISA. Johnson said, "This would be
a direct attempt to manage a plan. I don't think it would pass muster."
However, the Schwarzenegger administration says its plan is different
from the Maryland law and it would not be overruled by federal law
because it would not be company-specific, nor would it mandate a
specific type of health benefit. Kim Belshé, secretary of the state
Health and Human Services Agency, said the governor's proposal is
different than the Maryland proposal because it is built on the
"principle of shared responsibility" spread among business, individuals
and government (Los Angeles Times, 1/25).
[back to top]
Wal-Mart
Japan unit sees wider net loss in 2006
Reuters
[back to top]
TOKYO - Wal-Mart Stores Inc.'s <WMT.N>
Japanese unit, Seiyu Ltd. <8268.T>, on Tuesday said it would fall deeper
into the red for 2006 than it first estimated, with the supermarket
chain struggling to boost sales in a tough market.
Seiyu will mark its fifth straight
year of losses despite investments of more than $1 billion by Wal-Mart,
the world's largest retailer, which owns 53 percent of Seiyu and sees it
as a key to expanding in the Japanese market.
"They still have yet to turn a profit,
and it's unclear when they will be able to do so," said Kazunori Tsuda,
senior retail analyst at the Daiwa Institute of Research.
"Mind you, it's a very tough market
and Seiyu has a very weak store portfolio," he said. Seiyu estimated its
group net loss at 55.8 billion yen ($459 million), wider than its
earlier projection of a 54.5 billion yen loss for the year ended
December but in line with analysts' forecasts.
Same-store sales rose 0.6 percent in
2006, the first annual rise in 15 years, but company spokesman Yasuhisa
Nezu said that was still below the company's target.
Seiyu also is mainly a supermarket
chain and unlike other Japanese retailers such as Aeon Co. Ltd. <8267.T>
it does not have finance or specialty store operations to offset
sluggish sales.
Wal-Mart Vice Chairman Michael Duke
told a Japanese business daily that the company might look for more
acquisition opportunities in Japan. But spokeswoman Amy Wyatt said on
Monday that Wal-Mart was more focused on expanding business at the Seiyu
chain.
Before the announcement, Seiyu shares
closed up 2.6 percent at 195 yen, outperforming a 0.11 percent rise in
the Nikkei average <.N225>.
Copyright 2007 Reuters News Service.
All rights reserved.
[back to top]
Critics, Wal-Mart
spar over leaked memo
By MARCUS KABEL
Associated Press
[back to top]
KANSAS CITY, Mo. Wal-Mart's
union-backed critics released a company memo Tuesday saying that a new
scheduling system could cut hours for individual workers, but Wal-Mart
said the document was outdated and the new system is working fine.
WakeUpWalMart.com obtained a 2006
briefing packet for store managers on plans for a new computerized
scheduling system aimed at better matching staff levels in Wal-Mart
stores to peak crowds of shoppers.
Unions and other critics have said the
centralized system, which analyzes an array of data to keep track of
customer demand and generates schedules based on that, requires too much
flexibility from Wal-Mart's more than 1.3 million U.S. workers.
The briefing document, released by
WakeUpWalMart during an annual meeting of Wal-Mart store managers in
Kansas City, instructs managers to tell staff that workers who are
unwilling to be available at peak evening and weekend times could wind
up with fewer hours or drop to part-time from full-time.
Bentonville, Ark.-based Wal-Mart
Stores Inc. said the document was a briefing paper from a pilot phase of
the program last summer.
The new system has since been rolled
out to all cashiers and customer service personnel and experience has
shown that employees are not losing hours, Wal-Mart spokeswoman Sarah
Clark said.
"Our full-time staff is working pretty
much the same days, the same approximate weekly hours and within one to
two hours of the same times as before," Clark said.
Clark said Wal-Mart employees had
shown support for the need to have more staff at peak times to take care
of customers.
The pilot phase ended with a decision
to allow local store managers to make last-minute changes in schedules
based on individual needs, something that was not initially planned,
Clark said.
"In fact, we've seen such significant
improvement in our customer's perceptions of their checkout experience,
and such great acceptance by our associates (employees) to the
scheduling program enhancements that we've encouraged our managers to
continue to do modifications as needed to best meet the needs of their
associates and customers," Clark said.
Chris Kofinis, spokesman for
WakeUpWalMart.com, said the briefing document contradicted Wal-Mart's
public statements that the new system would not cut worker hours.
"Wal-Mart has lied to its own workers
and the American people because they didn't want anybody to know the
truth about the terrible effect this policy will have on its workers and
their families," Kofinis said.
The new scheduling system requires
employees to fill out a form with the hours and days they are willing to
work, as well their preferred hours within that range and any regular
exceptions such as classes or regular medical appointments.
The briefing packet includes that
form, which encourages workers to be as open as possible during peak
evening and weekend hours and adds, "Limiting your personal availability
may restrict the number of hours you are scheduled."
In talking points for store managers
addressing employees, the document says, "If you have restricted your
personal availability to hours that don't fall within peak customer
traffic periods, it is likely that you will see a decrease in your
number of scheduled hours on the draft schedules, and that could even
impact your Full-Time status."
The talking points go on to say
managers will work with employees in an attempt to fix the problem and
add that managers should remain personally involved in finding a
solution, such as moving the worker to a different job.
Wal-Mart tested the new scheduling
system at a number of stores last year before adopting it for cashiers
and customer service employees. It plans to adopt the system for all
remaining employees at its U.S. stores this year, Clark said.
[back to top]
Wal-Mart's New Marketing Strategy Hides Dirty Practices
By Jim Hightower,
Hightower Lowdown
January 30, 2007
[back to top]
You know that our world has turned
totally topsy-turvy when Wal-Mart -- the low-price, bare-knuckle
retailing behemoth known far and wide as the Bully of Bentonville for
its ruthless corporate practices -- is suddenly putting on airs and
positioning itself as (dare I say it?) metrosexual.
Yes, the world's largest and meanest
merchandiser -- stung in the last few years by a grassroots rebellion of
employees, small businesses, unions, neighborhood groups,
environmentalists, and others that it has been so arrogantly stiffing --
is now straining to project a kinder and gentler image: urbane, upscale,
green, socially responsible … even sensitive, for goodness sake. The
image spiff-up comes as Wal-Mart executives have made a marketing
decision to move from their suburban/rural base into cities, reaching
out to a clientele that wants finer goods … and a more refined company.
But has the beast really changed?
Inside the stores, and you can see a Nouveau Wal-Martique emerging. To
appeal to more affluent customers (this advanced Wally-World calls them
"selective shoppers"), Wal-Mart is upgrading its merchandise to include
$500 bottles of wine, organic foods, $2,000 plasma TVs, 400-thread-count
sheets, imported balsamic vinegar, organic-cotton baby clothes,
microbrewed beers, and a new "Metro 7" line of designer fashions. Never
mind that the average Wal-Mart shopper lives in the suburbs, is female,
stands 5-foot-2, wears a size 14, and is looking for sensible skirts and
durable go-to-work clothing -- the reinvented retailing giant is
proffering skinny-legged, fur-trimmed jeans for the stylish set. It has
even run an 8-page fashion spread in Vogue magazine.
Last March, this high-toned
Wal-Martique opened a model store in the well-to-do corporate haven of
Plano, Texas. No downscale blue-and-gray, concrete-block facade for this
baby. It features two tone brick walls, wood floors, wide aisles,
uncluttered shelves with cherry finish, halogen lights, and discrete
fitting rooms for a hoity toity clientele. Also, forget the usual
in-store McDonald's. There's an espresso bar with free wi-fi and -- Holy
Sam Walton! -- a sushi bar to enhance what cosmopolitan retail
consultants call "the shopping experience."
In addition, you might note what's not
there. No more layaway plans, for example. No shotguns and hunting gear,
either. Also, far less in the way of automotive tools and supplies. As
the model store's project manager explains, "This customer is telling us
they're not doing it themselves. They don't change their own oil."
Eliza Doolittles
Naturally, an upwardly mobile Wal-Mart
cannot have its workers -- excuse me, "associates," as they are called
in Wal-Martspeak -- garbed in those dowdy blue vests with "How May I
Help You?" emblazoned on the back. Too, too tacky. When a corporate
fashion designer was brought in, he took one look at Sam Walton's
friendly vests and termed them "the lowest guppy in the pool" of retail
outfits.
So Wal-Mart is giving a makeover not
only to 1,800 stores, but also to clerks. A new dress code dictates a
positively preppy look of khaki pants and navy-blue polo shirts, giving
the place a feel described by the fashion designer as "much more
business casual than working class." Yes, but should workers tuck their
polos into their khakis for a sharp, snappy appearance, or leave the
shirts untucked as a sign of an easygoing, fun-loving workplace? Believe
it or not, the tucking question reached the top levels of HQ in
Bentonville. Finally, the word came down from on high: "If they want to
tuck it in they can. If not, they can leave it out."
And you thought there was no workplace
democracy at Wal-Mart!
Workers, however, are less than
charmed by the change in couture, for the company expects them to dig
into their own pockets to buy the preppy uniforms. Perhaps these
employees will find solace in the assertion by the fashion designer that
the new duds "will raise the status of the 1.3 million Americans" who
|