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Wal-Mart
Jump-Starts Discounts for Holidays
By MICHAEL BARBARO
New York Times
October 31, 2007
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In what is shaping up to be the
earliest holiday shopping season ever, Wal-Mart Stores says it will
offer door-buster discounts this Friday, three weeks before they are
traditionally unveiled on the day after Thanksgiving.
The giant discount chain is expected
to announce a plan today to sell five major products — like a $350
laptop — beginning at 8 a.m. on Friday in a bold effort to jump-start
holiday shopping two days after Halloween.
The move is likely to put growing
pressure on Wal-Mart’s competitors, like Best Buy and Toys “R” Us, to
begin marking down merchandise well ahead of Nov. 23, known as Black
Friday because it was historically the day stores turned a profit, or
went into the black.
The pre-Thanksgiving price-cutting
underscores how worried the retail industry is about consumer spending
this season. With the housing market in a slump and energy prices high,
industry analysts expect retail sales in November and December to grow
at the slowest rate in five years.
In the phenomenon of “creeping
Christmas,” stores like CompUSA and Gap have begun opening their doors
at midnight on Thanksgiving to drum up business, delighting some
bargainhunting consumers and irritating some others who bemoan the
earlier-than-ever start to the season.
But no retailer has ever tried to
single-handedly move Black Friday, considered the biggest shopping day
of the year.
Linda Blakley, a spokeswoman for
Wal-Mart, said that consumers “are feeling all kinds of pressure, but
because part of our DNA is to provide great prices on the gifts people
buy, we are starting to do that early.”
Four of the five products will remain
secret until Thursday morning, when they can be found — but not bought —
on the walmart.com Web site. Shoppers can begin buying them in stores at
8 a.m. on Friday, where the company expects the kind of long,
early-morning lines that are common on Black Friday.
By keeping the products secret until
the last minute, Wal-Mart will avoid the risk of newspaper circulars
leaking out onto the Internet weeks before the sale, as Black Friday ads
now regularly do, much to retailers’ chagrin.
Ms. Blakley said Wal-Mart would still
offer Black Friday deals on Nov. 23. “This,” she said, “is an early
Christmas gift to our customers.”
Copyright 2007 The New York Times
Company
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UPDATE 1-Wal-Mart starting big holiday deals this week
Reuters
Wed Oct 31, 2007
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NEW YORK, Oct 31 - Wal-Mart Stores Inc
(WMT.N: Quote, Profile, Research) said on Wednesday it will begin
offering this week the type of holiday discounts it typically reserves
for "Black Friday" -- the day after Thanksgiving that typically marks
the start of the ultra-competitive holiday shopping season.
The world's largest retailer said that
on Thursday it will list special deals on its Web site, like an Acer
Aspire laptop with a 14-inch LCD screen for $348.
Customers will then be able to buy the
products in its stores starting on Friday.
Wal-Mart has said it intends to be
aggressive this holiday season to boost sales at its U.S. stores.
It is trying to reassert itself as a
low-price retailer and appeal to shoppers who are being squeezed by high
energy and food costs, the unstable real estate market and a credit
crunch. Last year the company downplayed its discount roots in an effort
to attract more business from higher-income shoppers.
Wal-Mart began reducing prices on
popular toys in September, and earlier this month said it cut prices on
15,000 items, 20 percent more than at the same point a year before.
At its analyst meeting last week,
Wal-Mart said it was doing "very, very well" selling Halloween
merchandise and candy, and was confident in its Christmas plans.
"When it comes to Christmas, you're
going to see (a very different look) from Wal-Mart because you're going
to see an increased effort behind presentation," Eduardo Castro-Wright,
head of its U.S. operations, said at the meeting.
The retailer is opening Christmas
shops in its stores that will sell holiday decor and gifts, and offer
product demonstrations. (Reporting by Nicole Maestri)
© Reuters 2006. All rights reserved.
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No to another Wal-Mart in
Ceres
By LIONEL BARRAGAN,
The Modesto Bee
October 30th, 2007
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I work in Ceres and I would like to
respond to "Ceres certainly needs more retail, but not more Wal-Marts"
(Oct. 17, Page B-7). For me, Wal-Mart isn't the holy grail of shopping.
Wal-Mart almost sells all of what Ceres businesses had to offer before
Wal-Mart came to town. Ceres certainly doesn't need more of the same.
Especially distasteful to me is the
notion of Wal-Mart's new slogan "Save money, live better." Is saving
money the key to happiness? And who is living better — really? Certainly
not Wal-Mart employees.
The perception of the "live better"
slogan lies in grave contrast to the daily reports about how the
Wal-Mart corporation abuses its authority and excuses itself from
responsibility. As Americans, we never found it beneficial to allow
corporations or any city to suppress its people.
I applaud all Wal-mart employees,
vendors, and business partners, worldwide who have been courageous
coming forward with their stories. Their accounts of Wal-Mart's lack of
concern for people and the environment, interfere with my support of the
corporation. Nevertheless, I believe that many fine people shop and work
at Wal-mart.
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David versus Goliath: Austin residents take-on Wal-Mart
By Justin Finney
OpEdNews
October 30, 2007
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In November 2006, residents in Austin,
Texas who lived near a dying shopping mall called Northcross received
some big news in their morning paper: Wal-Mart was coming to
town—literally. This wasn’t going to be your typical super-center
situated off of an interstate, but a 219,000 sq. ft. Wal-Mart (the
largest in Austin) near a four-way intersection flanked by
neighborhoods. The biggest surprise to residents though was that the
site-plan had already been approved by city-council. Concerned about the
impact of a large 24 hr. Wal-Mart in their backyard, and frustrated that
their input hadn’t been sought, the residents formed RG4N (Responsible
Growth for Northcross) and the fight was on.
Early on in the fight, RG4N discovered
that Wal-Mart had fine-tuned its site application process from lessons
it’d learned during previous battles against other cities—over 280
cities have stopped Wal-Mart, according to the San Luis Obispo New
Times. In most cases, Wal-Mart purchases land that its stores will
occupy; this time it would only lease. Usually, residents get wind of a
new super-center because Wal-Mart “is purchasing property or has got to
change zoning,” said Lisa Waddell, vice-president of RG4N. “We think
that they were really sneaky here. They really kept it under wraps.”
As a mere tenant, Wal-Mart escaped the
direct line of fire, leaving RG4N to deal with the city and the Dallas
based developer Lincoln Properties. Residents’ frustration over
Wal-Mart’s hushed move-in was compounded by the city’s atypical approval
process of Wal-Mart’s site plan. By granting the developer an
“administrative” site permit instead of a “conditional use” permit—which
RG4N says is required by city law because of Wal-Mart’s outdoor garden
center—the city-council wasn’t required to hold a public hearing.
Undeterred, residents showed up in large numbers to voice their concerns
in front of city council. In response, the city-council claimed “because
it’s not an official public hearing, its hands were tied,” said Waddell.
In a surprising development during
conversations between city-council and RG4N, some council members
revealed that they’d be warned by city attorneys that they’d be
financially responsible for their own defense should any lawsuits ensue
from interference with Wal-Mart’s site plan—a claim that RG4N’s
attorneys say has no legal precedence. In addition to this revelation,
it was also revealed in the Austin Chronicle that the city manager, Toby
Futrell, had a husband who worked for Wal-Mart as a HVAC service
manager. Shortly after the conflict of interest was revealed, the city
manager recused herself from future dealings in the matter, but only
after the site-plan was a virtual done-deal.
Determined to fight on in light of
these depressing revelations, RG4N took up a number of tactics: from
drawing up a vertical mixed-use site plan with civil engineers as an
alternative to a Wal-Mart, weekly protests at the mall’s street
intersection (one protest brought out over 3500 people who formed a
human chain around the mall,) reaching out to the developer Lincoln
Properties, and the eventual lawsuit filed after Lincoln’s second
site-plan application was submitted.
The second site-plan, offered
ostensibly as a compromise from Wal-Mart, called for an extra turn-lane,
the reduction of the building in size from 219,000 sq. ft. to 192,000
sq. ft. (made possible by narrowing the aisles,) and a store opened for
22 hours a day instead of 24—except on holidays.
If Wal-Mart thought its compromise
offer had been generous, RG4N made it clear they thought otherwise with
the filing of a lawsuit against the city and Lincoln Properties in June
2007. If successful, the lawsuit will invalidate the site-plan. In its
lawsuit, RG4N alleges that the city broke four laws in granting the site
permit by using the wrong approval process, failing to enforce a plat
note that limits runoff (which would negatively impact a nearby creek,)
failure to enforce a protective tree ordinance, and failing to enforce
traffic and public-safety provisions.
RG4N’s own projections on traffic
impact indicated a discrepancy between what the developer presented to
the city and the city’s own traffic research. “The big numbers aggregate
from our estimates and the city’s study of the other super-centers is
25,000 cars a day. Lincoln’s estimate was 15,000 cars,” said Waddell. In
addition to these numbers, the city had already rated the nearby
intersection at near capacity. “The city rates streets on a scale from A
to E, with E being the point of failure and requiring some kind of
mitigation to the street because of its impact to public safety,” said
Waddell. “The intersection on Burnet and Anderson (intersection near
development) is already at a D minus with current traffic.” Such
traffic, besides causing pollution and turning once quiet neighborhood
streets into mini thoroughfares, also slows down emergency vehicles and
endangers the many residents who run, walk, and bike in the area.
Regarding the runoff from the
Wal-Mart, another allegation in the lawsuit and important concern of
residents, Waddell said that the nearby creek couldn’t handle the extra
inflow. “Shoal creek is a watershed area and a designated flood zone.”
In addition to the runoff’s flood hazard, there’s the usual pollutants
of oil and fertilizers resultant from the thousands of cars and outdoor
garden-center that will negatively impact the environment. “Runoff from
cement parking lots is different. If it’s not absorbing into the ground
than it’s in streams and puddles. It’s running down into rivers and
overflows.”
But residents' concerns over a
Wal-Mart super-center moving into their neighborhood aren’t confined to
the allegations listed in the lawsuit. Literature on the group’s website
cites a litany of reasons why Wal-Mart isn’t healthy for communities: a
national study of over 500 Wal-Marts reported a 400-1000 higher
percentage rate of police incidents compared to the nearest Target
super-centers, another report on three Iowa communities showed property
values are lowered when local businesses go under, and then there’s the
noise and light pollution that’s inevitable with a super center—some of
the homes in one Austin neighborhood are only 600 feet from the proposed
Wal-Mart.
In a show of support for RG4N, a
number of local businesses have stepped forward and donated money, in
addition to donations received from sympathetic Austin residents.
However, in spite of all the public resistance, Lincoln Properties has
boldly moved ahead and started partial demolition on the mall, accepting
the risk of losing in court, and in turn, it’s own construction profits.
In one immediate victory though, RG4N
has convinced the developer to halt the decimation of 26 mature trees on
the site. This small victory in the uphill battle against the world’s
largest private employer and sales chart-topper of the Fortune 500 was a
partial anodyne to the irony of Austin’s recent passage of the “big-box
ordinance,” shortly after the city’s approval of the Wal-Mart site plan.
Passage of the ordinance requires stores over 100,000 sq. ft. to be
processed with “conditional use” permits. The same kind of permit RG4N
says should have been used and would have allowed a public hearing. In
addition, a city ordinance creating incentive for “vertical-mixed-use”
developments, a type of building design that offers an alternative to
big-box super-centers, was also passed too late to have any effect on
the outcome of the Wal-Mart in RG4N’s neighborhood.
The final decision that will secure or
scuttle a victory for RG4N residents lies in the hands of a judge who
will hear arguments on the case on November 13. Should the residents be
successful in nullifying the site-plan, Lincoln Properties will have to
go back to the drawing board and be subject to all the new requirements
mandated by the big-box ordinance. It’s an outcome Lisa Waddell is
hopeful for, pointing out that other Wal-Marts that have already begun
construction were forced to be demolished after a judge’s order. But she
tempers her hope with the sobering reality of the situation.
“City-council authorized the city to pay them 250,000 dollars to fight
this case,” she said. “The city hired an attorney to fight the
citizens…but what else can we do but fight?”
Anyone interested in helping RG4N in
its fight against Wal-Mart can visit their website and contribute
donations: www.rg4n.org
Authors Bio: Justin Finney is a writer
and activist living in Austin Texas. When not mulling over the serious
political and ecological conumdrums of the day, he practices French,
jogs, and meditates—but not nearly often enough.
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Wal-Mart toy recall lacked some consumer information
Associated Press
October 30th, 2007
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The federal consumer product watchdog
agency said Tuesday that a unilateral recall of lead-tainted toy animals
by Wal-Mart Stores Inc. lacked some information that consumers need,
including how many toys were sold, when they were sold and at what other
retailers.
U.S. Consumer Product Safety
Commission spokeswoman Julie Vallese said the agency prefers that
companies work with it to produce comprehensive recall announcements
that give consumers all the information they need to react.
The largest U.S. toy seller announced
Oct. 19 that it was pulling sets of plastic toy animals made in China
and offering a refund to shoppers. It said its own safety testing,
stepped up after this year's string of toy recalls, found excessive lead
levels in the material the toys are made of.
Wal-Mart said Tuesday it always works
with the CPSC and did so in this case by notifying the agency of the
test results and decision to pull the product.
"Our testing revealed excessive levels
of lead in these toy sets. We informed the supplier and the CPSC and we
felt we had to let our customers know what we'd found," company
spokeswoman Linda Blakely said.
Wal-Mart's Oct. 19 recall announcement
did not say how many of the sets were sold, when they had been stocked
in Wal-Mart stores or name the manufacturer.
The retailer has declined to provide
those details when asked by The Associated Press. A spokeswoman said she
believed the toys were sold by other retailers but declined to provide
their names.
The CPSC's Vallese said she was not
criticizing Wal-Mart and said the agency has a good working relationship
with the retailer.
But the agency wants recall
announcement to contain all the information consumers need to respond,
including how many of a product were sold, when and where.
"All of this information is necessary
for consumers to respond to announced recalls," Vallese said.
"We are not big fans of when companies
handle recall announcements independently of the agency. It can cause
confusion and doesn't always provide consumers with the information they
need," Vallese said.
The CPSC's recall notices also specify
whether a product poses an imminent health hazard, like choking, or
because it violates a law, such as those against excessive lead levels.
"Wal-Mart took an action independent
of the agency, knowing that we prefer when the announcement (of a
recall) includes all the information that makes it more comprehensive
and less confusing," Vallese said.
She said Wal-Mart's information
prompted the agency to open an investigation of the toys, which were
sold in bagged sets of farm animals, jungle animals and dinosaurs
without a brand name.
The investigation includes testing by
the agency's own labs. Vallese could not say when those results would be
done but added that "to say a matter of months would be too long".
While the investigation is active,
Vallese said the agency is barred by law from disclosing details
including the number of toys sold or at which retailers.
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Wal-Mart
announces opening of 36 stores in October
M2 COMMUNICATIONS LTD
10/30/2007 [back to top]
Oct 30, 2007 (M2 EQUITYBITES via
COMTEX News Network) -- Wal-Mart Stores Inc (NYSE: WMT), the operator of
Wal-Mart Stores, Supercenters, Neighborhood Markets, and Sam's Club,
announced on Monday (29 October) that the company will complete the
opening of 36 new stores and clubs across the US during the month of
October 2007. The new stores will reportedly be providing jobs for
10,800 associates. Over 4,300 associates have been hired to fill new
positions at new, expanded and relocated stores. The company said that
it is opening stores in 22 states in October 2007 that will serve
diverse communities from cities to rural and suburban communities. The
final two October stores will open on 30 October 2007, including a new
Supercenter in Wasilla, Alaska. Since February Wal-Mart has reportedly
opened 205 stores and clubs across the US, including 163 supercenters,
19 Sam's Clubs, 16 Neighborhood Markets and 7 discount stores. 32,000
associates were hired to fill new positions, Wal-Mart said.
(C)2007 M2 COMMUNICATIONS LTD
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Market
Selling Expired Wal-Mart Food In Beijing
China Retail News
October 30, 2007 [back to top]
According to Sina.com, a supermarket
in Xiba Village of Beijing's Chaoyang District is selling expired food
with Wal-Mart tags.
A staff representative from the
Chinese market says in the report that it has been selling expired food,
including yogurt, meat and vegetables, for more than two years. Since
the price is cheaper than at Wal-Mart, it has reportedly done good
business.
Chinese media reports that the expired
food that the supermarket sells come from Wal-Mart Zhichun Road Store,
but Huang Li, a representative from Wal-Mart's public relations
department in China, says that Wal-Mart's store at Zhichun Road has
signed with and consigned a company called Beijing Chunqiu Storage and
Transportation Company to destroy its expired food. Therefore they say
they have never hear of their expired goods being sold by other
supermarkets.
Huang says that as a global company,
Wal-Mart has attached great importance to the disposal of its expired
food and they have never allowed their expired food to flow into other
markets. Huang says if it proves to be the cooperating company that has
given the goods to the illegal supermarket, they will severely punish
the company, and they will set up a special team to investigate
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Wal-Mart opposes
Movie Gallery auction
The Associated Press
October 29, 2007
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Wal-Mart Stores Inc. has joined a
group of landlords protesting Movie Gallery Inc.'s plan to close more
than 500 of its stores during its Chapter 11 bankruptcy case.
In papers filed Saturday with the U.S.
Bankruptcy Court in Richmond, Va., Wal-Mart joined landlords requesting
that the court rescind its approval of rules governing the auction of
leases on most of the 520 stores that Movie Gallery intends to shut
down.
The major discount retailer leases
space to Movie Gallery in several locations, including stores in
Kentucky, Tennessee, Florida and California. Most of the leased space is
located inside Wal-Mart stores.
Wal-Mart has signed on to the
objection of the Inland Real Estate Group of Companies Inc., which
states that the rules governing the lease auction "are deficient and not
reasonable" and that landlords were not given sufficient time to object
to the rules before the court gave its approval.
In court documents, Inland said the
bankruptcy court's quick approval of the auction procedures "without any
prior, meaningful notice to Inland or to the other landlords" threatens
to deny the landlords' due-process rights.
As for the auction rules, Inland said
they were deficient because they effectively give landlords only five
days to evaluate their prospective new tenants. Inland has asked for
seven business days.
Last week, two groups of landlords,
including Inland, filed objections to how Movie Gallery plans to conduct
going-out-of-business sales at the stores.
At issue is Movie Gallery's ability to
conduct business during whatever hours it deems appropriate, the lack of
a deadline for the completion of the sales and the display of
going-out-of-business signs. They fear the disruption of other
businesses at the shopping centers in which Movie Gallery rents space.
Movie Gallery, based in Dothan, Ala.,
filed for Chapter 11 protection on Oct. 16, listing $1.4 billion in
liabilities and $892 million in assets. The company aims to save about
$70 million in rent by closing the stores.
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New Wal-Mart Larger Than Life
By Kevin Cowherd,
Baltimore Sun
October 29th, 2007
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Let's face it: We like big things in
this country.
We like big cars, big houses, big
burgers we can stuff in our big mouths and Big Gulps to wash 'em down.
We like big TVs, big malls and big
sales. Who gets excited about a regular sale anymore? Now it has to be
"THE BIGGEST LABOR DAY SALE EVER! DON'T MISS THIS SPECTACULAR EVENT!"
Sometimes, even big won't do.
Sometimes we need bigger than big.
Super-sized, that's what we need. Like
a pizza the size of a manhole cover, with 27 toppings and 10 pounds of
cheese injected via cooking syringe into the crust, the biggest,
thickest, gooiest pizza in the whole world.
Anyway, if you're into all this
bigness, you need to drive up to Cockeysville and see the new Wal-Mart
Supercenter, which is the size of, I don't know, Montana.
Oh, this baby is huge.
It's a gleaming 240,000- square-foot
temple of rampant consumerism, aisle after aisle after aisle crammed
with every conceivable product you could ever want, all of it shimmering
under dazzling white lighting.
It has a Subway restaurant, a bank, a
place to get your nails done and a 200-bed surgical center where you can
have your gall bladder removed or a torn meniscus repaired between trips
to the bakery and photo center.
The store is so big, I had to take a
shuttle bus to get from electronics to pet supplies.
OK, that's not true.
Neither is that stuff about the
surgical center.
But the store does have a
drive-through lane in the garden center, where apparently you'll be able
to shop for garden supplies without getting out of your car.
(Because God forbid you actually burn
any calories before doing your yard work. I bet they hand out free
doughnuts at the garden center drive-through, too.)
Anyway, the new Wal-Mart is absolutely
cavernous, if you like that sort of thing. And apparently many people
do.
On the day I visited, first-time
shoppers seemed dazzled as they pushed around their carts. I saw quite a
few of them whip out cell phones and intone to the other person: "Oh ...
my ... God. You gotta see this place!"
Well, I did see the place.
In fact, I walked from one end to the
other on the faux-marble flooring until my fat feet hurt.
I marveled at the 200 - or whatever
the number was - LCD TVs on display, at the health and beauty section
that is bigger than most public libraries, at the hot-chicken counter
where you could stuff yourself with fried chicken, barbecued chicken,
Szechuan chicken, rotisserie chicken, sweet-and-sour chicken and
thermonuclear hot wings that looked as if they would melt off your lips.
I took in the immense sporting goods
section and all the clothing aisles, and the lamp aisles, and then I
stopped to roll a few frames at the 150-lane bowling alley and do some
bungee jumping off the atrium skywalk.
OK, I kid about the bowling and bungee
jumping, too.
But as I walked and marveled and
pounded all that shoe leather, I was struck by this thought: When does
big become too big?
When does a huge store become so
sprawling, with so many products - food and automotive, books and
boomboxes, furniture and bedding, and 27 aisles of pet supplies - that
it becomes overwhelming?
What if you don't want to go on a
quarter-mile hike to find a jar of pickles, as I did the other day?
What if you don't want to walk up and
down 10 aisles looking for a pack of athletic socks?
Yet the fact is that in a few years,
Wal-Mart will probably decide that a Supercenter isn't big enough for
all its customers.
Then they'll open a Megacenter, 110
acres with a lake stocked with bass in the middle of the store,
waterfalls cascading around the pharmacy and vision center, a food court
and the aisles crammed with 18 million products for sale.
But after a few years, that'll start
to feel small, too.
So then you'll be hearing about the
grand opening of the new Wal-Mart Enormocenter, shaped around 246
environmentally sensitive wooded acres, with an overhead monorail system
to take you from one end of the complex to the other, a 400-room
Marriott on the premises, a 12-screen multiplex cinema, 2,000 checkout
counters and every single product ever manufactured on the shelves.
I hope I can find the pickles.
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Wal-Mart rolls out
SAP in 14 countries
Rebecca Thomson
ComputerWeekly.com
29 Oct 2007
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Wal-Mart, the world's biggest
retailer, is to replace its in-house accounting systems with SAP's
enterprise resource planning Financials package in 7,100 stores in 14
countries. The first phase is due to finish in 2010.
A Wal-Mart spokesman said the
retailer, which is engaged in a £3bn international expansion programme,
will replace in-house accounting systems that are "too unwieldy for the
global, complex world the company is moving into".
He said, "The timing is right because
there are limits to what we can do in 14 countries with the legacy
systems. The SAP system is a superior tool for the future."
The accounting package will have to
work with existing systems in Wal-Mart, such as logistics and store
management.
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Meredith signs
licensing deal with Wal-Mart
By Lauren Bell
October 26th, 2007
[back to top]
Meredith Corp. has signed a multiyear
licensing agreement with Wal-Mart Stores Inc.
Products sold at Wal-Mart under the
agreement will be based on Meredith flagship magazine Better Homes and
Gardens. The exclusive line of home goods will be in Wal-Mart stores by
fall 2008.
“We believe Wal-Mart is an ideal
partner for the Better Homes and Gardens brand,” said Art Slusark, VP of
corporate communications and government relations for Meredith. “
Independent consumer research revealed that Better Homes and Gardens |