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    <title>Wal-Mart Watch</title>
    <link>http://walmartwatch.com</link>
    <description />
    <dc:language>en</dc:language>
    <dc:creator>Wal-Mart Watch</dc:creator>
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      <title>Walmart Appealing Dukes to SCOTUS</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/eU-zK--_gg8/</link>      <description>Walmart would like a legal system that only works for the big guys.</description>
      <dc:subject>Wages</dc:subject>
            <content:encoded><![CDATA[<p>Walmart is <a href="http://online.wsj.com/article/BT-CO-20100825-713699.html">appealing to the Supreme Court</a> the 9th Circuit Court of Appeals&#8217; ruling that the Dukes v. Walmart case can move forward as a class action lawsuit. 
</p>
<p>
Dukes v. Walmart is the largest gender discrimination lawsuit in history, alleging that women who worked at Walmart were systematically given less pay and less chance at promotion due to gender.&nbsp; We&#8217;ve spoken a lot about it in the <a href="http://walmartwatch.com/blog/archives/learn_more_about_dukes/">past</a> <a href="http://walmartwatch.com/research/documents/dukes_v_wal_mart_class_action_certification/">on this</a> website.&nbsp;  
</p>
<p>
<a href="http://caselaw.findlaw.com/us-9th-circuit/1519911.html">According to the 9th Circuit</a>:
</p>
<blockquote><p>Plaintiffs contend that Wal-Mart&#8217;s strong, centralized structure fosters or facilitates gender stereotyping and discrimination, that the policies and practices underlying this discriminatory treatment are consistent throughout Wal-Mart stores, and that this discrimination is common to all women who work or have worked in Wal-Mart stores.</p></blockquote>
<p>
Walmart even <a href="http://www.nytimes.com/2010/06/04/business/04lawsuit.html">knew they were wide open</a> for such a lawsuit but did nothing to change their practices.&nbsp;  Now Walmart is asking the Supreme Court to say that its one million plus female employees can&#8217;t make this claim as a class action.
</p>
<p>
So maybe if Walmart had only discriminated against half a million women it wouldn&#8217;t be appealing?&nbsp; 
</p>
<p>
From what we can tell, the reason that Walmart is asking the Supreme Court to take on this case is that they do not want to be exposed to the damages might result from such a large class, up to and possible more than 1 million women. Walmart would like to have each woman bring suit individually, rather than trying to defend themselves against the allegation that there was an overall culture of discrimination.
</p>
<p>
Dukes v. Walmart is the perfect example of why we have class action lawsuits in this country: no lawyer would be able to take any one of these cases individually because the damages would be too small to devote the time needed to prove discrimination. 
</p>
<p>
Walmart would like a legal system that only works for the big guys.
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/eU-zK--_gg8" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-08-27T17:12:07Z</dc:date>
    <feedburner:origLink>http://walmartwatch.com/blog/archives/walmart_appealing_dukes_to_scotus/</feedburner:origLink></item>

    <item>
      <title>Walmart’s Second Quarter Earnings Report: Bad News for Associates and Investors</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/vO4L2-lXbzQ/</link>      <description>Walmart’s second quarter earnings report this morning shows that U.S. same store sales continue to slide. And Walmart Associates are paying the price.</description>
      <dc:subject>Sales/Stock</dc:subject>
            <content:encoded><![CDATA[<p>Walmart&#8217;s <a href="http://investors.walmartstores.com/phoenix.zhtml?c=112761&amp;p=irol-newsArticle&amp;ID=1460455&amp;highlight=">second quarter earnings</a> report this morning show that U.S. <a href="http://online.wsj.com/article/BT-CO-20100817-707895.html">same store sales continue to slide</a>. While profits were boosted by international sales, Walmart reported lower than expected <a href="http://money.cnn.com/2010/08/17/news/companies/Walmart_earnings/">sales growth</a>. The company continues to have trouble expanding its customer base, while at the same time Walmart&#8217;s core customers are hurting. The effect of this slowing of sales has been poor returns for shareholders.
<br />
 
<br />
Meanwhile Walmart managers are increasingly using cost-cutting measures in an attempt to maintain profits, and Walmart Associates are paying the price. Walmart Associates have told us that they are <a href="http://walmartspeakout.com/speak-out/story/the_last_couple_of_years_have_been_an_increasing_struggle">short staffed</a> and department inventories are a mess. Full-time associates have been seeing their hours cut to part-time levels and a rise in part-time staff in the company as a whole. Earlier this year executives at Walmart&#8217;s home office increased premiums for Associates&#8217; health care plans, which already have <a href="http://wakeupwalmart.com/facts/healthcare.html">very high deductibles</a>. This results in the transfer of even more costs to Associates.
<br />
 
<br />
This rate of return is also a poor bargain for shareholders. Walmart&#8217;s goal is to be a <a href="http://seekingalpha.com/article/219501-why-an-investment-in-wal-mart-is-dead-money">perpetual growth stock</a>, but this downward spiral will only lead to more sluggish sales and poorer share price performance. Over the last 12 months Walmart&#8217;s stock has underperformed the stocks of unionized grocers including <a href="http://www.google.com/finance?client=ob&amp;q=NYSE:SWY">Safeway</a> and <a href="http://www.google.com/finance?client=ob&amp;q=NYSE:KR">Kroger</a>, demonstrating that unionization isn&#8217;t a problem for companies that have a healthy business model.
</p>
<p>
<img alt="WMTKRSWY.jpg" src="http://blog.wakeupwalmart.com/WMTKRSWY.jpg" width="503" height="271" class="mt-image-center" style="text-align: center; display: block; margin: 0 auto 20px;" />
<br />
The Walmart model of low wages, poor benefits, and no job security continues to trip up the company and these missteps are seen in this quarter&#8217;s returns. Walmart Associates don&#8217;t have the resources needed to build positive financial growth in their own lives, and Walmart, as the nation&#8217;s largest employer, puts downward pressure on wages throughout the entire economy. These practices stand in the way of a meaningful recovery both for Walmart Associates and the economy as a whole.
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/vO4L2-lXbzQ" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-08-17T17:41:33Z</dc:date>
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      <title>Garment Worker Leaders Under Attack from Walmart Supplier</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/MJ5kCuPfprY/</link>      <description>Join us in calling on Walmart to demand a stop to attacks on garment worker leaders in Bangladesh.</description>
      <dc:subject>bangladesh</dc:subject>
            <content:encoded><![CDATA[<p><a href="http://letters.wakeupwalmart.com/p/dia/action/public/?action_KEY=2266">Join us in calling on Walmart to demand a stop to attacks on garment worker leaders in Bangladesh.</a>
</p>
<p>
<a href="http://walmartwatch.com/blog/archives/bengali_poverty_how_those_jeans_cost_only_8/">Recently we wrote</a> about the conditions under which garment workers in Bangladesh struggled, often making as little as 11.5 cents per hour.&nbsp; Last week these workers began to protest when the wage increases they were seeking fell short of their demands.
<br />
 
<br />
The government of Bangladesh, under pressure from manufacturers, has begun systematically attacking worker rights groups, especially targeting the <a href="http://www.laborrights.org/creating-a-sweatfree-world/sweatshops/partner-spotlight-bangladesh-center-for-workers-solidarity">Bangladesh Center for Worker Solidarity</a> (BCWS).&nbsp; BCWS&#8217;s assets have been frozen by the government, and one of their leaders was detained and beaten by authorities.&nbsp; 
<br />
 
<br />
BCWS leaders in Bangladesh are reporting persecution from manufacturers and the government.&nbsp; One manufacturer in particular, Nassa Global Wear, has filed suit against BCWS.&nbsp; The owners of Nassa, who are former high-ranking military officers, may have used their political power to pressure the government to arrest BCWS leaders.&nbsp; Walmart is Nassa&#8217;s largest customer, purchasing an estimated 80% of the  production of the company. As the largest retailer in the world, Walmart has enormous bargaining power and influence over the way their suppliers do business.
<br />
 
<br />
Walmart has written a letter to the Ambassador of Bangladesh to the United States, asking him to investigate the worker crackdown, but they could use their influence much more powerfully than by just writing a letter. One phone call from Walmart--either to Nassa officials or to Bangladeshi government officials--could make these human rights abuses stop.
<br />
 
<br />
<a href="http://letters.wakeupwalmart.com/p/dia/action/public/?action_KEY=2266">Please join us in calling on Walmart to use the full weight of their influence to push Nassa Global Wear to stop its assualt on workers&#8217; rights.&nbsp; </a>
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/MJ5kCuPfprY" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-08-11T12:33:23Z</dc:date>
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    <item>
      <title>Bengali Poverty - How Those Jeans Cost Only $8 (UPDATE)</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/IKrOfxcjfWs/</link>      <description>Young women garment workers in Bangladesh are expected to make 10 pairs of Faded Glories an hour, being paid about 1.2¢ a pair.</description>
      <dc:subject>Ethics, Culture, Legal Issues</dc:subject>
            <content:encoded><![CDATA[<p><img alt="Walmart Jeans.jpg" src="http://blog.wakeupwalmart.com/Walmart%20Jeans.jpg" width="216" height="224" class="mt-image-right" style="float: right; margin: 0 0 20px 20px;" /><strong>UPDATE</strong>: <a href="http://letters.wakeupwalmart.com/p/dia/action/public/?action_KEY=2237">Take our Online Action in support of Bengali garment workers.</a>: 
</p>
<p>
Ever wonder how Walmart can sell jeans for <a href="http://www.walmart.com/ip/Faded-Glory-Women-s-Organic-Cotton-Relaxed-Fit-Flared-Jeans/12519587">$8 a pair</a>?&nbsp; The <a href="http://www.nlcnet.org/">National Labor Committee</a> found out by going to the source: young women garment workers in Bangladesh.&nbsp; 
</p>
<p>
The Faded Glory - Women&#8217;s Organic Cotton Relaxed-Fit Flared Jean is sewn in Anowara Apparels factory in Chittagong, which sells almost 100% of its production to Walmart.&nbsp; According to an <a href="http://www.nlcnet.org/alerts?id=0176">action alert from NLC</a> issued on July 28, 2010 and available at nlcnet.org.
</p>
<p>
These workers make the equivalent of 11½¢ an hour.&nbsp; They are expected to make 10 pairs of Faded Glories an hour, working out to about 1.2¢ a pair.&nbsp; Compare that to workers who engaged in the <a href="http://en.wikipedia.org/wiki/1912_Lawrence_Textile_Strike">Bread and Roses Strike</a> here in the US.&nbsp; They were making about 15¢ per hour.&nbsp; <em>In 1912.</em>
</p>
<p>
In June we <a href="http://blog.wakeupwalmart.com/ufcw/2010/06/tell-walmart-to.html"> encouraged Wake Up Walmart supporters</a> to join the National Labor Committee and called on Walmart CEO Mike Duke to support a minimum wage for garment workers in Bangladesh.&nbsp; The letter to Duke is <a href="http://salsa.democracyinaction.org/o/677/p/dia/action/public/?action_KEY=4035">still available</a>, and more than two thousand people have already signed on.
</p>
<p>
Walmart isn&#8217;t willing to pay a cent or two more per pair of jeans to lift these women and thousands like them out of abject poverty.&nbsp; 
</p>
<blockquote><p>&#8220;The wage the workers are paid, I will say, is not only insufficient, but also inhumane.&nbsp; It is simply impossible for [the garment workers] to even live from hand to mouth in the capital with the peanuts they get in wages.&#8221; - Prime Minister Sheikh Hasina</p></blockquote>
<p>
Please join us and NLC in telling Wal-Mart to support the modest 35-cent-an-hour minimum wage demand of Bangladesh&#8217;s garment workers, not one cent less.
</p>
<p>
Wal-Mart Stores, Inc.
<br />
702 SW 8th Street
<br />
Bentonville, AK 72716
</p>
<p>
Phone: 479-273-4000
<br />
Fax: 479-273-4329
<br />
Email: Mr. Rajan Kamalanathan, Vice President of Ethical Sourcing - Rajan.Kamalanathan @wal-mart.com
</p>
<p>
Let Walmart know that under no known branch of moral philosophy is this considered to be ethical:
</p>
<blockquote><p>&#8220;A few years back, I told Wal-Mart, &#8216;Give me one cents more a piece, one cents. I will use that money for these poor people.&#8217; He says, &#8216;No, give us two cents less.&#8217;&#8221; - Bangladeshi Factory Owner</p></blockquote><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/IKrOfxcjfWs" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-07-29T12:27:01Z</dc:date>
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      <title>Walmart “Supporters” Paid Untraceable $100</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/zP1XpEHYPto/</link>      <description>Pro-Walmart “supporters” in Chicago were paid $100 to come and protest on behalf of the retail giant</description>
      <dc:subject>illinois</dc:subject>
            <content:encoded><![CDATA[<p><img alt="100dollarsupport.jpg" src="http://blog.wakeupwalmart.com/100dollarsupport.jpg" width="250" height="176" class="mt-image-right" style="float: right; margin: 0 0 20px 20px;" />A story in today&#8217;s <a href="http://www.chicagoreader.com/chicago/walmart-pullman-paid-demonstrators/Content?oid=2099358">Chicago Reader</a><sup>1</sup> reveals that at least one hundred pro-Walmart &#8220;supporters&#8221; in Chicago were paid $100 to come and protest on behalf of the retail giant building in their neighborhood in front of Chicago&#8217;s City Council on Thursday, June 24.
</p>
<p>
In the run up to the City Council vote in Chicago over the proposed zoning, Walmart was involved in a lot of footwork in the South Side community. For example, they did <a href="http://chicagoist.com/2009/07/29/is_wal-mart_push_polling_chicago.php">push polling</a><sup>2</sup>, they pushed a lot of <a href="http://www.chicagobusiness.com/cgi-bin/blogs/hinz.pl?plckController=Blog&amp;plckScript=blogScript&amp;plckElementId=blogDest&amp;plckBlogPage=BlogViewPost&amp;plckPostId=Blog:1daca073-2eab-468e-9f19-ec177090a35cPost:f1f4f0b3-f8fe-4075-b8b8-574c262e2259&amp;plckCommentSortOrder=TimeStampAscending&amp;sid=sitelife.chicagobusiness.com">money at charities</a><sup>3</sup>, and they created a <a href="http://chicagoist.com/2010/01/26/wal-mart_using_fake_community_group.php">fake community group</a><sup>4</sup> (along with Walmart-paid comment spammers). 
</p>
<p>
The <a href="http://online.wsj.com/article/SB10001424052748704293604575343213367759640.html">Wall Street Journal</a><sup>5</sup> said that even Obama could learn something from Walmart about community organizing. 
</p>
<p>
But if Walmart or some other group was paying these South Side residents a C-note each to &#8220;protest,&#8221; it demonstrates that this visible and media-friendly support for Walmart was manufactured.
</p>
<p>
Community groups and labor were able to extract some <a href="http://wakeupwalmart.com/press/article.html?article=2877">concessions</a><sup>6</sup> from Walmart in the run up to the City Council vote, though Walmart said it was be <a href="http://blogs.bnet.com/business-news/?p=2974">reneging</a><sup>7</sup> on those agreements. 
</p>
<p>
Walmart continually claims that people want the company in their communities. When the agreement was reached and the City Council was about to vote, how many of those <a href="http://www.nytimes.com/2010/06/25/business/25walmart.html?src=busln">folks with signs</a><sup>8</sup> that read things like &#8220;Benefits from Walmart better than AFDC [Aid to Families with Dependent Children]&#8221; and &#8220;Walmart is better than welfare 4 me&#8221; came out because they supported Walmart and how many came because there was a crisp hundred dollar bill in it for them.
</p>
<p>
<small>Notes:<ol>
<li><a href="http://www.chicagoreader.com/chicago/walmart-pullman-paid-demonstrators/Content?oid=2099358">Brooks, Max. &#8220;You Can Buy Love&#8221; Chicago Reader. 15 July 2010. Web.</a></li>
<li><a href="http://chicagoist.com/2009/07/29/is_wal-mart_push_polling_chicago.php">Robinson, Kevin.&nbsp; &#8220;Wal-Mart Push Polls Chicago, Claims 74% Support New Store - Chicagoist.&#8221; Chicagoist: Chicago News, Food, Arts &amp; Events. 29 July 2009. Web.</a></li>
<li><a href="http://www.chicagobusiness.com/cgi-bin/blogs/hinz.pl?plckController=Blog&amp;plckScript=blogScript&amp;plckElementId=blogDest&amp;plckBlogPage=BlogViewPost&amp;plckPostId=Blog:1daca073-2eab-468e-9f19-ec177090a35cPost:f1f4f0b3-f8fe-4075-b8b8-574c262e2259&amp;plckCommentSortOrder=TimeStampAscending&amp;sid=sitelife.chicagobusiness.com">Hinz, Greg. &#8220;Wal-Mart Reaches Deal for &#8216;dozens&#8217; of New Chicago Stores.&#8221; Crain&#8217;s Chicago Business. 21 June 2010. Web.</a></li>
<li><a href="http://chicagoist.com/2010/01/26/wal-mart_using_fake_community_group.php">Robinson, Kevin. &#8220;Wal-Mart Using Fake Community Group to Manufacture Support.&#8221; Chicagoist. 26 Jan. 2010. Web.</a></li>
<li><a href="http://online.wsj.com/article/SB10001424052748704293604575343213367759640.html">Mcgurn, William. &#8220;McGurn: Wal-Mart Does Saul Alinsky - WSJ.com.&#8221; Business News &amp; Financial News - The Wall Street Journal - WSJ.com. 6 July 2010. Web.</a> </li>
<li><a href="http://wakeupwalmart.com/press/article.html?article=2877">Statement from the Wake Up Walmart Campaign of the United Food and Commercial Workers International Union on the Agreement Between Worker Organizations and Walmart in Chicago.</a></li>
<li><a href="http://blogs.bnet.com/business-news/?p=2974">Tice, Carol. &#8220;Walmart Gets Its Chicago Store, and Immediately Reneges on Its Wage Deal.&#8221; Business Blogs BNET. 25 June 2010. Web.</a></li>
<li><a href="http://www.nytimes.com/2010/06/25/business/25walmart.html?_r=1&amp;src=busln">Clifford, Stephanie. &#8220;Wal-Mart Gains in Its Wooing of Chicago.&#8221; The New York Times. 24 June 2010. Web.</a></li>
</ol></small>
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/zP1XpEHYPto" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-07-15T17:26:34Z</dc:date>
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      <title>Walmart Spending Millions to Avoid $7K Fine</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/ltZcg275_Kc/</link>      <description>Walmart is trying to drown OSHA in paperwork and spend millions of dollars in order to avoid paying a $7,000 fine.&amp;nbsp; This is like hiring Johnnie Cochran to get out of a speeding ticket.</description>
      <dc:subject>Legal Issues</dc:subject>
            <content:encoded><![CDATA[<p>Why is Walmart spending millions to fight a $7,000 fine?&nbsp; 
</p>
<p>
The fine comes from the <a href="http://blog.wakeupwalmart.com/ufcw/2009/11/remembering_bla.html">2008 trampling death</a> Jdimytai Damour, who had been working at the Walmart in Long Island.&nbsp; On Black Friday, the day after Thanksgiving, of that year a crowd of 2,000 people had been lined up for hours near a hand-written sign that read &#8220;Blitz Line Starts Here.&#8221;  Shoppers busted through the line shortly before the store was scheduled to open, crushing Damour as he tried to protect a pregnant woman from being trampled.&nbsp; 
</p>
<p>
We have called on Walmart have higher <a href="http://www.wakeupwalmart.com/feature/store_safety/index.html">safety standards</a>, now it seems that the company doesn&#8217;t want to even recognize that it did anything wrong.
</p>
<p>
According to <a href="http://www.nytimes.com/2010/07/07/business/07walmart.html?src=busln">The New York Times</a>, Walmart is fighting a $7,000 fine from <a href="http://osha.gov/">OSHA</a>.&nbsp; But it is difficult to understand why Walmart is doing so.&nbsp; They reached an agreement with the Nassau County NY district attorney to create a $400,000 fund for victims of the stampede, they&#8217;ve spread around $1.5 million to charities and community groups in the community around the Walmart store in question, and they have announced &#8220;crowd policy&#8221; changes, though how effective they are is open to interpretation, based upon <a href="http://blog.wakeupwalmart.com/ufcw/2009/11/a_new_and_impro.html">five articles</a> from this season.
</p>
<p>
From the Times: 
</p>
<blockquote><p>In May 2009, OSHA accused Wal-Mart of failing to provide a place of employment that was &#8220;free from recognized hazards.&#8221; Specifically, the agency said the company violated its &#8220;general duty&#8221; to employees by failing to take adequate steps to protect them from a situation that was &#8220;likely to cause death or serious physical harm&#8221; because of &#8220;crowd surge or crowd trampling.&#8221; 
</p>
<p>
Wal-Mart, the world&#8217;s largest retailer, says that regulators are trying to enforce a vague standard of protection when there was no previous OSHA or retail industry guidance on how to prevent what it views as an &#8220;unforeseeable incident.&#8221; </p></blockquote>
<p>
Walmart is essentially trying to drown OSHA in paperwork and spend millions of dollars in order to avoid paying a $7,000 fine, taking up almost a fifth of the time of lawyers at OSHA&#8217;s New York office.&nbsp; This is like hiring <a href="http://en.wikipedia.org/wiki/Johnnie_Cochran">Johnnie Cochran</a> to get out of a speeding ticket.&nbsp; 
</p>
<p>
Walmart admitted no liability when it settled with the Nassau D.A.&nbsp; But if it paid the OSHA fine, it would in a sense be admitting that it had committed some wrongdoing in not preventing the trampling death.&nbsp; If they admitted wrongdoing, they might be held accountable to government.
</p>
<p>
And Walmart refuses to be held accountable by anyone but themselves.&nbsp;
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/ltZcg275_Kc" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-07-07T16:37:08Z</dc:date>
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      <title>Live Blogging The Walmart Shareholder Meeting</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/s6CqAeWC2UU/</link>      <description>Over at Wake Up Walmart, they are live-blogging the 2010 Walmart Shareholder Meeting.</description>
      <dc:subject>News</dc:subject>
            <content:encoded><![CDATA[<p>Over at Wake Up Walmart, they are <a href="http://blog.wakeupwalmart.com/ufcw/2010/06/live-blogging-t.html" title="live-blogging">live-blogging</a> the 2010 Walmart Shareholder Meeting.&nbsp; Head on over and check it out.
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/s6CqAeWC2UU" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-06-04T13:55:58Z</dc:date>
    <feedburner:origLink>http://walmartwatch.com/blog/archives/live/</feedburner:origLink></item>

    <item>
      <title>Walmart Had Clear Knowledge of Discrimination</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/84kUl1mieRg/</link>      <description>It is clear that Walmart had every reason to know that it was practicing gender discrimination at the time the Dukes v. Wal-Mart class action lawsuit was filed</description>
      <dc:subject>Women</dc:subject>
            <content:encoded><![CDATA[<p>It is clear as day that Walmart had every reason to know that it was practicing gender discrimination at the time the <a href="http://www.wakeupwalmart.com/press/article.html?article=2809">Dukes v. Wal-Mart</a> class action lawsuit was filed, according to an <a href="http://www.nytimes.com/2010/06/04/business/04lawsuit.html?hp">article just released by The New York Times</a>.
</p>
<p>
In 1995 Walmart hired the law firm of Akin Gump Strauss Hauer &amp; Feld to do an audit and see if the company was at risk of just such a suit.&nbsp; No surprise to us, the firm found that 
</p>
<blockquote><p>men were five and a half times as likely as women to be promoted into salaried, management positions.</p></blockquote>
<p>
In a <a href="http://www.wakeupwalmart.com/press/article.html?article=2875">press statement</a> released this evening, Wake Up Walmart said
</p>
<blockquote><p>Today&#8217;s news is a smoking gun that Walmart leadership was aware of the financial risk facing the company for six years before women took legal action against its policies that systematically paid female workers less than their male counterparts and prevented women from winning promotions. </p></blockquote>
<p>
According to <a href="http://www.nytimes.com/2010/06/04/business/04lawsuit.html?hp">The New York Times article</a>, Walmart had criticized the report that they themselves commissioned by saying that the analysis in it was modeled on the kind of analysis that lawyers filing a class action lawsuit would use.&nbsp; 
</p>
<p>
And then the largest class action lawsuit in the history of the United States was filed against them.
</p>
<p>
That is why we are calling on you to join us in calling for an end to such discrimination.&nbsp; <a href="http://letters.wakeupwalmart.com/p/dia/action/public/?action_KEY=1857">Send a letter to Walmart&#8217;s Board of Directors</a> telling them that Walmart executives should not be getting massive bonuses until they prove that gender discrimination is no longer part of how Walmart does business!&nbsp; 
</p>
<p>
Activists will be gathering across the country on Friday carrying just that message.&nbsp; <a href="http://www.wakeupwalmart.com/feature/shareholder/local.html">See if there is an event near you</a> and join us in calling for an end to these horrible business practices.
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/84kUl1mieRg" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-06-04T01:13:39Z</dc:date>
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    <item>
      <title>Consumer Reports Trashes Wal-Mart</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/30ZnDT2XL2c/</link>      <description>Wal-Mart ‘best symbolizes’ what corporate excess has done to America.&amp;nbsp;</description>
      <dc:subject>Battle-Mart</dc:subject>
            <content:encoded><![CDATA[<p>Last November, Vanity Fair and 60 Minutes published a telephone poll which surveyed a random sample of 1,097 Americans. When given a choice of 5 companies, and asked to pick which company “best symbolizes America today,” 48% chose Wal-Mart---more than 3 times those who selected Google. (Microsoft, the N.F.L. and Goldman Sachs were the other also-rans.)
</p>
<p>
The results of that survey could be construed to mean that post-bailout America is truly ‘best symbolized’ by a power-sotted corporation that exploits its workers, drains our manufacturing base, hammers our trade deficit, and floods our markets with cheap sweatshop products from China. Yes, Wal-Mart ‘best symbolizes’ what corporate excess has done to America. 
</p>
<p>
This week we have another survey—this one from Consumer Reports magazine---which surveyed 30,666 of its readers over a year’s time, asking them to rank experiences and products at 11 retailers, including Wal-Mart. Consumer Reports issued this brief disclaimer: “Results might not reflect experiences of the U.S. population.”
<br />
Wal-Mart will not be reprinting the Consumer Report survey on its website. The results are not very flattering—and they’re not very different from a similar survey the magazine published eight years ago. 
</p>
<p>
For openers: “Last year shoppers spent $405 billion at Wal-Mart, the world&#8217;s largest retailer. But according to a new study by the Consumer Reports National Research Center, they might be better off if they switch stores.” 
</p>
<p>
Consumers shop at Wal-Mart for one reason only: presumed low prices. But CR readers said prices at the 10 other retailers (which included JCPenney, Sears, and Target) were “at least as good.”
<br />
Almost 75% of Wal-Mart shoppers found at least one problem to complain about, and half had two or more complaints. In terms of overall store rating, Wal-Mart finished 10th out of 11 stores, barely nosing out Kmart at dead last. 
</p>
<p>
“Wal-Mart was near the bottom of the Ratings,” CR concludes. “The number of complaints about Wal-Mart&#8217;s lines and narrow aisles was above average. About 44% of its shoppers had a problem with the staff if they sought help. Quality of apparel, jewelry, kitchenware, and electronics was rated below average.”
</p>
<p>
Ouch!&nbsp; 
</p>
<p>
This is not the message Wal-Mart spent $2.4 billion in advertising this past year to cultivate. Wal-Mart boasts that it serves customers more than 200 million times per week The retailer has a bloated store base spread out over 603 billion square feet of selling space in America alone. The mantra at Wal-Mart is “fast, friendly and clean.” Or as Wal-Mart puts it: “Busy moms expect a clean and efficient store layout.”
</p>
<p>
But the Consumer Report survey suggests a company whose presentation is slow and unfriendly. According to CR readers, Wal-Mart and Kmart had the least knowledgeable staffers, and Wal-Mart’s cavernous supercenters were cited as “stores that were too big to navigate easily.” The 2010 CR survey notes that Wal-Mart shoppers were “particularly peeved” at the cumbersome merchandise return process at the giant retailer.&nbsp; 20% of the returns took more time than expected, readers said. Worst of all, checkout lines were worst at Wal-Mart, cited by 46% of readers who had shopped there.
</p>
<p>
Wal-Mart is stung by such criticism, because the company is obsessed with its sleek and tidy image.&nbsp; “As I walked through one of our stores,” writes company CEO Mike Duke in Wal-Mart’s current annual report, “the engineer in me loved seeing the efficiency and smoothness of how our operations executed and performed.”
</p>
<p>
On the one hand, Wal-Mart tells its shareholders that it “achieved record customer experience scores for the year, reflecting increased traffic, and higher ‘fast, friendly, clean,’ scores.” Apparently Wal-Mart didn’t cross tab any customer satisfaction surveys with Consumer Reports readers. 
</p>
<p>
The “engineers” at Wal-Mart may seek comfort in the fact that Consumer Reports is only seen by an estimated 7.3 million readers---while Wal-Mart has 200 million customers every week. But Vanity Fair has only 1.2 million readers, so maybe Wal-Mart needs to do some more focus groups with those “Busy Moms” who drive their bottom line.
</p>
<p>
Wal-Mart’s self-serving hyperbole about efficiency and seamless shopping has become a mainstay of its culture, and is taken for granted by the media. But this week, Consumer Reports readers kicked some dirt on that shiny exterior.&nbsp;
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/30ZnDT2XL2c" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-06-02T12:53:47Z</dc:date>
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    <item>
      <title>Walmart Disingenuous About Miley Jewelry</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/I5hBibi6pIQ/</link>      <description>Walmart’s brilliant PR person: “The Miley Cyrus &amp;amp; Max Azria line is not for children.”</description>
      <dc:subject>Toys</dc:subject>
            <content:encoded><![CDATA[<p>This is a video of Walmart flack Jane Coleman.&nbsp; Just take a minute and fast-forward to about 1:30.
</p>
<p>
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<br />
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</p>
<p>She says &#8220;The Miley Cyrus and Max Azria line is not for children.&nbsp; It is sold in our lady&#8217;s apparel  section and was designed for and marketed to older audiences.&nbsp; However it is possible that a few younger customers may seek it out in the store.&#8221;
</p>
<p>This, ladies and gents, is a classic example peeing on your leg and telling you it is raining.&nbsp; Because Hannah Montana is marketed at &#8220;older audiences&#8221;?&nbsp; Correct me if I&#8217;m wrong, but I don&#8217;t think Ms. Cyrus&#8217;s show is on the television lineup after <em>Grey&#8217;s Anatomy</em>.&nbsp; 
</p>
<p>Classic example of Walmart telling it like it isn&#8217;t.
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/I5hBibi6pIQ" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-06-01T14:17:14Z</dc:date>
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    <item>
      <title>Wal-Mart Changes Mind, Returns To Derry, NH</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/r8i3ap9M7Js/</link>      <description>A lot of Wal-Mart opponents in Derry, New Hampshire were disappointed to learn this week that Wal-Mart has decided to try to build a superstore in this community of 34,000 people.


The irony of course is that there already is a Wal-Mart discount store on Manchester Road in Derry---but Wal-Mart wants a bigger store so it can add a full line of groceries. There are, in fact, no less than 12 Wal-Mart stores within 18 miles of Derry, so the residents have plenty of places to get their cheap Chinese imports.


Two years ago, in March of 2008, Wal-Mart dropped plans to build a Derry superstore. But now the company says its plans are back on the drawing board---which means the company will leave behind a ‘dark store’ that could remain empty for years. According to the Lawrence Eagle Tribune newspaper, the site Wal-Mart covets now is the same location on Route 28 that it was developing two years ago.


Wal-Mart’s regional community manager issued the standard company statement about the on-again project. “We are excited to bring even more savings and convenience to the Derry community. Our relationship with the residents of this community has been long-standing and we look forward to continuing to serve the area.”</description>
      <dc:subject>Battle-Mart, new_hampshire</dc:subject>
            <content:encoded><![CDATA[<p>A lot of Wal-Mart opponents in Derry, New Hampshire were disappointed to learn this week that Wal-Mart has decided to try to build a superstore in this community of 34,000 people.
</p>
<p>
The irony of course is that there already is a Wal-Mart discount store on Manchester Road in Derry---but Wal-Mart wants a bigger store so it can add a full line of groceries. There are, in fact, no less than 12 Wal-Mart stores within 18 miles of Derry, so the residents have plenty of places to get their cheap Chinese imports.
</p>
<p>
Two years ago, in March of 2008, Wal-Mart dropped plans to build a Derry superstore. But now the company says its plans are back on the drawing board---which means the company will leave behind a &#8216;dark store&#8217; that could remain empty for years. According to the Lawrence Eagle Tribune newspaper, the site Wal-Mart covets now is the same location on Route 28 that it was developing two years ago.
</p>
<p>
Wal-Mart&#8217;s regional community manager issued the standard company statement about the on-again project. &#8220;We are excited to bring even more savings and convenience to the Derry community. Our relationship with the residents of this community has been long-standing and we look forward to continuing to serve the area.&#8221;
</p>
<p>
The new store will measure in at 147,000 s.f. Wal-Mart says the 160 people it employs at its current Derry store will be transferred to the new site, and that 85 new jobs will be created. This, of course, is a gross figure, and does not indicate the net jobs left once you subtract out the similar jobs that will be lost at existing grocery stores in the Derry trade area.
</p>
<p>
The existing Manchester Road location is 115,000 s.f. which is large enough to be a supercenter, so a second location is totally unnecessary. Wal-Mart could do an &#8220;in-box conversion,&#8221; in which the existing store footprint is simply reconfigured to make room for groceries. This would require no permits, no hearings, and no major controversy.
</p>
<p>
In the spring of 2008, Wal-Mart announced a major slow down in new store development. The company told Derry officials that the economy was the main reason the retailer was shutting down negotiations with the town. But Wal-Mart now says times have changed. &#8220;Due to changing dynamics in the regional and national economy, we feel this proposal is a good fit at this time,&#8221; the Wal-Mart spokesman told The Eagle Tribune.
</p>
<p>
Two years ago, during negotiations with the town, Wal-Mart was asked to come up with $1 million to help upgrade Route 28 for their new store. It turns out that town officials have been having private meetings with Wal-Mart for months, without the public knowing about it. &#8220;We&#8217;ve had some discussions with the real estate people over the last couple months,&#8221; Derry&#8217;s planning director admitted to the newspaper.
</p>
<p>
According to the town, a proposal may not be submitted until July or August. But the Derry Conservation Commission is looking over any wetlands impact this coming week. 
<br />
What you can do: Town officials seem to have no clue what this project means for the local economy.
</p>
<p>
&#8220;I think it&#8217;s great,&#8221; Derry Town Council Chairman Brad Benson told the Eagle-Tribune. &#8220;I think any further economic development Derry could get is good.&#8221; But is Wal-Mart a form of economic development, or simply a form of economic displacement?
</p>
<p>
The town council has no economic impact study before them, and &#8220;think&#8221; this project means jobs---but actually has no evidence that a supercenter means jobs. Another town councilor told the newspaper, &#8220;I&#8217;m happy they are going to come. But if it&#8217;s not them, then it will be someone else. If Wal-Mart comes, it will bring a lot of other people. Hopefully, it will be beneficial to Derry.&#8221;
</p>
<p>
But economic development should not be based on &#8216;hope.&#8217; The reality is not only will Derry be left with a dead Wal-Mart to fill---and very few retailers want a 115,000 s.f. used building---but there is also an existing Wal-Mart superstore only 7 miles away in Salem, New Hampshire, which could also lose sales.
</p>
<p>
Wal-Mart admitted in its recently-released 2010 annual report that new stores often steal sales from existing stores, so the addition of new stores cuts into a key indicator called &#8220;same store sales growth,&#8221; which was very weak at Wal-Mart this year--in part because of the over saturation of stores---as in the Derry trade area.
</p>
<p>
Readers are urged to contact Derry Town Council Chairman Brad Benson at bradbenson@ci.derry.nh.us with the following message: &#8220;Dear Chairman Benson, I was surprised to see your assessment of the proposed Wal-Mart superstore as being &#8220;great.&#8221; Why do you consider this a form of economic development?
</p>
<p>
I would urge you to check with your existing grocery stores in town to ask them how many people they employ, before you start counting your 85 promised jobs at Wal-Mart.
</p>
<p>
The town might also do well to put in place a surety bond for demolition of retail stores that sit empty for more than 12 months, because you are going to have a 115,000 s.f. dead store on your hands within a year after you green light Wal-Mart. The fact is a Wal-Mart superstore will make some things increase: crime, traffic, air pollution, noise and light pollution. It will make residential property values near the site go down. But that&#8217;s it. Another retailer in town just means one more player in the game of retail musical chairs.
</p>
<p>
A study several years ago concluded that for every one Wal-Mart supercenter that opens, two area grocery stores will close.
</p>
<p>
No, Wal-Mart is not &#8220;great&#8221; for Derry. One Wal-Mart in Derry is one more than enough. Instead of wasting more land and resources on a new store, why don&#8217;t you ask Wal-Mart to do an &#8216;in-box conversion&#8217; at their existing store, by reformatting the interior floor space? That would be more sustainable, consume less energy, generate less pollution, and still give them increase market share.
</p>
<p>
Before you declare this kind of retail cannibalism &#8220;great,&#8221; do some research on Wal-Mart&#8217;s impact on municipal costs--especially public safety. Then you will understand why so many towns in New Hampshire have fought this suburban sprawl.&#8221;
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/r8i3ap9M7Js" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-05-10T14:52:07Z</dc:date>
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    <item>
      <title>Revealing Numbers In Wal-Mart’s Annual Report</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/ud3ubf_wMVI/</link>      <description />
      <dc:subject>Sales/Stock</dc:subject>
            <content:encoded><![CDATA[<p>Shareholders are pouring over Wal-Mart’s 2010 Annual Report, which the company has posted online. 
</p>
<p>
Wal-Mart by the numbers raises a number of concerns for investors, and some reason for optimism for community groups fighting the giant retailer:
</p>
<p>
• Net sales at Wal-Mart this past year grew by only 1%--the worst gain in the company’s history. The company is relying on sales outside America to keep the company growing. International sales, which hit $100 billion this year, now make up roughly 25% of the company’s net sales.
</p>
<p>
• Comparable store sales, which measures sales growth from existing stores in the current year to the same period the previous year, decreased in America by 0.8%, compared to a 3.5% increase in 2009. This is a key measure of store performance, and the numbers do not look good.
</p>
<p>
• Wal-Mart admits that “negative impact on comparable store sales as a result of opening new stores was approximately 0.6% in 2010, and 1.1% in 2009.” In other words, when Wal-Mart opens new stores in a saturated market, they cannibalize their existing stores, and cut into their own sales. “As we continue to add new stores in the United States, we do so with an understanding that additional stores may take sales away from existing units.” The good news for Wal-Mart fighters is: “With our planned slower new store growth, we expect the impact of new stores on comparable store sales to stabilize over time.”
</p>
<p>
• Wal-Mart claims that comparable store sales were lower in fiscal 2010 “due to a decrease in average transaction size per customer driven by price deflation in certain merchandise categories.” Consumers weren’t buying as much each shopping trip.
</p>
<p>
• In 2010, Wal-Mart added only 52 new stores, or half of the 106 new stores they added in 2009, and only one-third of the 154 new stores added in 2007. Instead of opening new stores, Wal-Mart for the past couple of years has been focusing on “Project Impact”---remodeling existing stores---or expanding their existing discount stores into supercenters, instead of building new stores.
</p>
<p>
• Wal-Mart’s total worldwide store count is 8,416 stores, and 952.2 million square feet of stores. 
<br />
• By its 2011 report, Wal-Mart will have more stores outside the U.S. than inside. Counting all Wal-Marts and Sam’s Clubs, the U.S. total is 4,304 stores, while the International store count is now 4,112.
</p>
<p>
• Wal-Mart claims that it will present something more exciting than the standard windowless big box format in the year ahead. “We have many opportunities to grow by opening new stores,” the Annual Report says, “entering new markets, making acquisitions, integrating online channels, and developing new, innovative formats to allow people to experience the Wal-Mart brands.&#8221;
</p>
<p>
• Look for growth in the U.S. to focus on urban areas: “Growth in the United States will come from additional penetration into more metropolitan markets, as well as from new formats and stronger integration with the online business."Chicago and New York City are the priority targets.
</p>
<p>
• Wal-Mart spent an average of $65.75 million every day over the past year on advertising. No wonder Americans are so indoctrinated with the Wal-Mart culture. Wal-Mart&#8217;s advertising budget was up 14% this year.
</p>
<p>
• Wal-Mart’s annual report was at the printers when the courts in California ruled that the huge gender discrimination case, Dukes V. Wal-Mart, could proceed as a class action lawsuit. The Annual Report notes, “If the company is not successful in its appeal of class certification, or an appellate court issues a ruling that allows for the certification of a class or classes with a different size or scope, and if there is a subsequent adverse verdict on the merits from which there is no successful appeal, or in the event of a negotiated settlement of the litigation, the resulting liability could be material to the company’s financial condition or results of operations. The plaintiffs also seek punitive damages which, if awarded, could result in the payment of additional amounts material to the company’s financial condition or results of operations.” In other words, they could lose billions on this one case.
</p>
<p>
• According to the retailer’s Annual Report, the company has potential future lease commitments for land and buildings for approximately 348 future locations. At its current annual rate of growth, that would be enough for the next seven years of new growth.
</p>
<p>
• If you don’t like Wal-Mart superstores, the states with the least superstores are Hawaii (0), Vermont (0), Rhode Island (2) and Alaska, Connecticut and Delaware (5 each). If you love superstore saturation, move to Texas (298), Florida (168), Georgia (129), Ohio (124) and North Carolina (119). The saturation states also have the highest number of “dead Wal-Marts” that have been left empty.
</p>
<p>
What you can do: Wal-Mart is so obsessed with being politically correct on the “sustainability” issue, that they tell you more about the printing of their annual report than the number of dead store eyesores they have left empty. 
</p>
<p>
Here is how Wal-Mart describes the print version of its Annual Report: 
</p>
<p>
“It is printed on FSC-certified responsibly forested paper containing recycled PCW fiber that is Elementally Chlorine Free (ECF). It is printed using 100% renewable wind power (RECs), along with environmental manufacturing principles that were utilized in the printing process.” The company claimed it saved “517 fewer trees consumed via recycling”
</p>
<p>
What Oscar Wilde said about cynics is true for Wal-Mart as well: Their sustainability counters know “the price of everything and the value of nothing.” 
</p>
<p>
Readers looking for more paint-by-numbers about Wal-Mart can go to walmartstores.com and click on “investors.”
<br />

</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/ud3ubf_wMVI" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-05-03T18:05:35Z</dc:date>
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    <item>
      <title>Meet the Woman Behind the Walmart Gender Discrimination Suit</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/_3sklab6WLA/</link>      <description />
      <dc:subject>Women, News, Ethics, Employees, Culture, Legal Issues, Wages, california, west, Legal Issues</dc:subject>
            <content:encoded><![CDATA[<p>The Huffington Post has a great piece up about Betty Dukes, one of the women behind the gender discrimination suit against Walmart. If you haven&#8217;t heard about Dukes v Walmart, it is the largest gender discrimination class action suit in the history of the country. Six women are suing Walmart on behalf of 1.5 million current and former female Walmart employees.
</p>
<p>
Walmart has been fighting hard against this suit, claiming that any discrimination (in this case the plaintiffs claim men are paid more for the same work and were afforded more opportunities for promotions) was an isolated incident and shouldn&#8217;t have to face a class action suit. That argument didn&#8217;t hold much water with the 9th Circuit Court of Appeals, however, which recently ruled that the case could go forward as a class action suit. 
</p>
<p>
That is good news for the 1.5 million women who have had to sue to ensure they get the same basic rights as their male counterparts. Here is just a small piece of <a href="http://www.huffingtonpost.com/2010/05/01/betty-dukes-walmart-greet_n_559892.html">Betty Duke&#8217;s story</a>:
</p>
<blockquote><p>As a &#8220;greeter,&#8221; the cheerful Betty Dukes is one of the first employees customers usually see as they walk through the front doors of the Wal-Mart store here.
</p>
<p>
As the first &#8220;named plaintiff&#8221; in Dukes v. Wal-Mart, the ordained Baptist minister also is the face of the largest gender bias class action lawsuit in U.S. history - one that could cost the world&#8217;s largest private employer billions.
</p>
<p>
Her dual roles have turned her into a civil rights crusader for the company&#8217;s many critics, who have dubbed the legal battle &#8220;Betty v. Goliath.&#8221; It is a far cry from where Dukes expected to be when she enthusiastically accepted an offer in 1994 to work the cash registers part-time for $5 an hour. She dreamed of turning around a hard life by advancing, through work and determination, into Wal-Mart corporate management.</p></blockquote>
<p>
Read the rest of her <a href="http://www.huffingtonpost.com/2010/05/01/betty-dukes-walmart-greet_n_559892.html">story on Huffington Post</a>.
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/_3sklab6WLA" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-05-03T17:54:33Z</dc:date>
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    <item>
      <title>Walmart Sales Slow, But Urban Warfare Quickens</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/NAW3C6iPhJk/</link>      <description />
      <dc:subject>Expansion</dc:subject>
            <content:encoded><![CDATA[<p>It&#8217;s been a rough year for Walmart.
</p>
<p>
<img src="http://walmartwatch.com/img/battlemart/norman-side2.jpg" style="margin:10px; float:right">The giant retailer just announced its worst net sales increase in history---just a 1% increase over 2009. But its drive to expand markets into urban areas is not slowing down one bit.
</p>
<p>
Walmart’s net sales grew by only $3.9 billion in 2010, one-seventh of the $27.3 billion in net sales increase the company experienced in 2009. Between 2006 and 2009, Walmart’s net sales growth has averaged 9.3%. By contrast, the 1% sales growth announced in the company’s 2010 Annual Report has got to have investors nervous.
</p>
<p>
The implosion of sales growth only makes Walmart more determined to push into more lucrative markets abroad---but also into urban markets in America.
</p>
<p>
Walmart is waging two urban guerilla wars simultaneously---one in Chicago, the other in New York City. Never before has a retailer had to resort to such intense efforts to build a store.
</p>
<p>
Much of the problem stems from the fact that Walmart stores are loaded with two things: cheap Chinese imports, and cheap American jobs. This profile explains in large measure why urban markets---where organized labor is most concentrated---have been so difficult for a retailer to break into.
</p>
<p>
Walmart has opened up its corporate checkbook to buy its way into urban centers. The New York Times reported this week that the Arkansas retailer is trying to bulk up its Chicago efforts to site a second store by hiring two former employees of Mayor Richard Daley. A Walmart spokesman said the company’s new lobbyists would be “helping us to tell the Walmart story.”
</p>
<p>
Mayor Daley like that story, and has been urging the Chicago City Council to hold a vote on a southside Walmart and be done with it. The Mayor doesn’t want to bother with passing the project through the city’s Zoning Committee---where it is likely to encounter stiff Chicago winds. Walmart is therefore buying more political muscle to try and punch a hole in Chicago’s zoning process.
</p>
<p>
“Vote it up or down, and then go back and tell the people &#8216;Hey, I got a job as alderman, but you don&#8217;t have one, ha ha ha,&#8217; &#8220; Daley was quoted as saying. &#8220;Laugh at the people: &#8216;I got a job, OK, you don&#8217;t have a job.&#8217;&#8221; Daley must count himself among the economic illiterates in this nation who still believe that giant retail corporations “create” jobs---even as national and regional retailers drop by the wayside---taking thousands of jobs down with them. Daley has a jobs calculator: it just has no minus pad on it.
</p>
<p>
Meanwhile, Walmart has been trying to get a bite out of the Big Apple for years, with nothing so far to show for it. The retailer rolled snakeyes in Queens and Staten Island---but is now hoping for better luck in Brooklyn. On March, 28, 2007, Sprawl-Busters reported that Walmart’s then-Chairman Lee Scott told the New York Times his passion to locate a superstore in Manhattan had cooled off. “I don’t care if we are ever here… I don’t think it’s worth the effort.” The newspaper called Scott’s comments “a surprising admission of defeat, given the company’s vigorous efforts to crack into urban markets and expand beyond its suburban base in much of the country.” Walmart clarified later that Scott was only referring to Manhattan.
</p>
<p>
This week Crain’s New York Business reports that Walmart still thinks New York City is worth the effort. Walmart is reportedly the surreptitious tenant in a massive Brooklyn project known as the Gateway II. The landowner, Related Cos., says no leases have been signed---but often in such cases Walmart orders the developer not to disclose the retailer’s interest. Related has already survived the toughest part of the process: Gateway II passed through the city&#8217;s land-use process last summer. By hiding off-site, Walmart can now reveal its interest, unbruised by the permitting process.
</p>
<p>
Walmart allowed its Director of Community Affairs to tell Crain’s, “We know that New Yorkers want to shop and work at Walmart, and as a result, we continue to evaluate potential opportunities here. New Yorkers want quality jobs and affordable groceries, and it remains our goal to be part of the solution.”
</p>
<p>
But Walmart is part of the problem, because the company cannot deliver on ‘quality jobs.’ It’s own “associates,” assail the company perennially over such issues as wage and hour theft, lack of decent health care benefits, and gender and racial bias in hiring, pay and promotion. The company’s impact on retail jobs has been similar to this week’s tornados in Tennessee and Mississippi: the weak retailers collapse, and those that remain standing look badly beaten up.
</p>
<p>
“We don’t care if they’re never here,” the executive director of the New York City Central Labor Council said last summer. “We don’t miss them. We have great supermarkets and great retail outlets in New York. We don’t need Walmart.” 
</p>
<p>
But by June of 2008, Lee Scott was talking about New York City again. Speaking at an analysts meeting, Scott said that New York’s Mayor Michael Bloomberg wanted a Walmart. “I just talked to the Mayor who wants us,” Scott told the analysts. “And Donald Trump called this week. And he&#8217;d like to have us. But in general, New York City hasn&#8217;t called and said please put a store there. Things get bad enough, they will.”
</p>
<p>
In Chicago, Walmart is banking on the fact that the recession has worn down some leaders in the low-income community who see a national chain store as their pathway out of poverty. The local self-reliance that used to be the hallmark of these communities has now turned into a pathetic whine for a corporate savior to make them baggers and clerks. But organized labor in Chicago is not about to drop its insistence on decent jobs at livable wages. 
</p>
<p>
According to Crain’s New York Business, Walmart proposals in the past were killed by “labor unions and community members who worried that the store&#8217;s low prices and modest wages would eat into the market share of unionized retailers like Pathmark, Key Food and Duane Reade and put mom-and-pop shops out of business.” True enough. But Walmart could also face behind-the-scenes problems from BJ’s and Target, which are both anchors in the Gateway I retail center.
</p>
<p>
Last summer, when Crain’s first wrote that Walmart was still beating the boroughs for a retail site, Walmart sent an email to Crain’s which said, “Walmart, for sure, is a very different company than we were five years ago.” But Walmart today is the same exploitive company that made it one of America’s most vilified employers-—it’s just $120 billion bigger in net sales today. “The reality remains the same,” Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union told Crain’s. “Walmart is not welcome in New York City, and it should not try to take advantage of these economic times to slither in.”
</p>
<p>
<b>What you can do: </b>That sentiment was echoed last summer by New York City Council Speaker Christine Quinn, who told the media, “While Walmart claims to have improved corporate practices, these efforts appear to be little more than window dressing. Until they make actual changes, providing a living wage and ending the practice of preying on small businesses, I will block any attempt to locate in the five boroughs.” 
</p>
<p>
City Councilman Charles Barron of Brooklyn also threw down the challenge. “We don&#8217;t like how they treat workers as it relates to salaries and benefits, and we&#8217;re not going to have them in our community. They will have the fight of their lives.”
</p>
<p>
Walmart may be counting on Gateway II to be their hidden gateway into New York City, and Mayor Daley may be counting up his former staff who are now on Walmart’s payroll, but two things are certain: Walmart’s 2010 sales were terrible, and its guerilla warfare in urban markets is going to turn into a string of ugly frontpage stories. 
</p>
<p>
The United Food and Commercial Workers is gearing up for a protest in the Gateway II neigborhood soon. “Walmart was never, ever mentioned once through the entire land-use process,” says Pat Purcell, assistant to the president of UFCW Local 1500. “In this area, it&#8217;s a job killer. It&#8217;s just the wrong use.”
</p>
<p>
Eight months ago, Purcell gave Walmart shareholders a similar warning: “The day they open their doors in the city, you will see a historic labor battle the likes of which has not been seen since the [1990-91] Daily News strike and the [2005] transit strike.”
</p>
<p>
Readers are urged to email New York City Council Speaker Christine Quinn at <a href="http://walmartwatch.com/?URL=http%3A%2F%2Fcouncil.nyc.gov%2Fd3%2Fhtml%2Fmembers%2Fhome.shtml">http://council.nyc.gov/d3/html/members/home.shtml</a> with the following message: “Speaker Quinn, Please don’t let Walmart slip in through the back door at Gateway II. Walmart says it is a different company than it was 5 years ago---but the exploitation has not changed, the impact on smaller merchants has not changed, the low wages and lack of decent health care has not changed. I urge you to stand by your pledge last summer not to let them into the burroughs. Don’t let that change either.”
<br />

</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/NAW3C6iPhJk" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-04-26T14:19:58Z</dc:date>
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    <item>
      <title>Wal-Mart Now Has 12 Dead Stores In Ohio</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/92leAmIaLQQ/</link>      <description />
      <dc:subject>Battle-Mart</dc:subject>
            <content:encoded><![CDATA[<p><img src="http://walmartwatch.com/img/battlemart/norman-side2.jpg" style="margin:10px; float:right">This is the story of how a piece of land given to a YMCA that was supposed to remain in a natural state ended up becoming a Wal-Mart supercenter---and even worse---killing a Wal-Mart discount store five miles away.
</p>
<p>
The city of Elyria, Ohio has become the site of the 12th ‘dark store’ owned by Wal-Mart. A 120,036 s.f. Wal-Mart in Elyria is now on the list of stores being marketed by Wal-Mart Realty---but its also another empty box whose property taxes will plummet, and sales taxes disappear. Ohio now has 1.2 million square feet of dead Wal-Marts.
</p>
<p>
The Elyria store has closed because Wal-Mart built a new superstore in Lorain, Ohio, just five miles away. On November 23, 2005, Sprawl-Busters reported that voters in Lorain had rejected a Wal-Mart supercenter at the polls. When a Home Depot project followed almost immediately, a group called The Friends of Anna E. Martin, named in the memory of the land’s former owner, formed to oppose Liberty Development Co.&#8217;s plans to build Lighthouse Village plaza on 65 acres.
</p>
<p>
The Lorain group circulated petitions for a referendum against the rezoning. The Lorain City Council approved rezoning of the property by a vote of 9-2 in 2005, and approved the preliminary plans for the Lighthouse “Village” project. Anna E. Martin willed the property to the Lorain YWCA in the 1960s to be preserved in its natural state and used for women&#8217;s and youth programs. A Probate Judge ruled in 1994 that the Church on the North Coast could buy the property from the YWCA and had to adhere to the conditions of the will. 
</p>
<p>
The Judge also ruled the church could sell the property to Liberty Development contingent on City Council approving the rezoning. Liberty Development was also required to donate $1.2 million to local charities to satisfy Martin&#8217;s wishes in the will.
</p>
<p>
The developer put up a Home Depot at Lighthouse Village, along with a Kohl’s Department store. 
</p>
<p>
On July 30, 2008, Sprawl-Busters reported that Lorain was swirling with rumors that Wal-Mart was the next big box store to move in beside the Kohl’s. &#8220;There is no deal,&#8221; a spokesman for the developer said, and Wal-Mart told the Journal, they were unaware of any specific proposal, but added: &#8220;We&#8217;re always looking for opportunities for growth and serving our customers.&#8221; 
</p>
<p>
A Lorain official made it clear that the city was ready to say yes to Wal-Mart. “We would entertain any company, big or small, coming into our community depending on how the deal is structured. As long as we create a win-win scenario for the business and the city of Lorain, I&#8217;m for it,&#8221; said Lorain’s Service Director. 
</p>
<p>
The Lorain City Council voted September 15, 2008 to approve a 200,000 s.f. superstore. Councilman Bret Schuster was the only one to vote against the plan. He raised concerns over the superstore’s impact on other city businesses. “Wal-Mart is not the best fit there,” he said. “It’ll probably cause Super K to close its doors, and who knows what other businesses will be affected?” 
</p>
<p>
This week, a year and half after the Lorain vote, people in neighboring Elyria found out who else would be affected by the Lorain vote. The Midway Mall in Elyria will have a dead Wal-Mart discount store by this summer when the Lorain superstore opens. 
</p>
<p>
The 13.785 acre site in Elyria is already listed for sale by Wal-Mart Realty. The store is only 18 years old—but at 120,036 s.f. (the size of 2 football fields) it is not likely to move any time soon. 
</p>
<p>
Making matters more difficult---there is an empty Dillard’s department store (which was killed by competitors like Wal-Mart) in the same mall, an empty Michael’s craft store nearby, as well as a nearby dead Circuit City. 
</p>
<p>
“We’ll have another big-box building that’s empty,” Elyria City Council President Forrest Bullocks, told the Chronicle-Telegram. “For that reason, I hate to see it close, but I’m not surprised because I knew it was just a matter of time once the Wal-Mart on the city’s southeast side opened, and Wal-Mart decided not to build that new store on Griswold Road.”
</p>
<p>
Elyria already has a Wal-Mart supercenter on Chestnut Commons Drive a couple of miles from the Midway Mall. Less than two years ago, Wal-Mart dropped plans to build a second superstore in Elyria.
</p>
<p>
Elyria Mayor Bill Grace is trying to put the best face on the proliferation of ‘ghost boxes’ in his community. He claims the lost sales from the closed Wal-Mart will just be shifted to the city’s Target store or the other Wal-Mart supercenter. But now the Mayor has a large mall that is dying on his watch. 
</p>
<p>
“The effects will be relatively minor,” the Mayor told the Telegram. “Many of the businesses in and around the mall are doing relatively well. But we must keep in mind the retail economy will stay pretty stagnant or produce minimal new retail construction for at least the next five years. Locations that have space available for lease will see business before new retail locations are built elsewhere in the county.” An interesting theory-—but one that Wal-Mart has just proven false. 
</p>
<p>
What you can do: One of the area’s newspapers, The Morning Journal, has also tried to put a good spin on this corporate leap-frogging.
<br />
 
<br />
The Journal mistakenly concluded that &#8220;Wal-Mart is bring several hundred jobs to Lorain.” Actually, almost every job is coming from Elyria-—so the net change will be negligible. That’s because more jobs will be lost at area grocery stores. The employment bottom line will be a zero sum game for both Elyria and Lorain. 
</p>
<p>
Elyria is clearly losing $100,000 in tax revenue from Wal-Mart. This makes Elyria the latest city to join the growing list of “communities that Wal-Mart killed twice"---once on the way in, and once on the way out.
</p>
<p>
Elyria is already talking about offering tax subsidies to anyone who moves to the Midway Mall. Maybe the offer of welfare will attract more national chain stores.
</p>
<p>
Readers are urged to call Elyria City Council President Forrest Bullocks at (440) 322-7370 with the following message: “Dear President Bullocks, Wal-Mart now has 12 dead stores in Ohio, counting the Elyria store in the Midway Mall, which is now listed for sale by Wal-Mart Realty.
<br />
 
<br />
The city should consider passing a surety bond ordinance that requires any retailer with a store greater than 100,000 s.f. leasable area to demolish their building if it sits for more than 12 months without an active retail use. A number of communities are taking this defensive action to spare their taxpayers of the cost of demolition years later. 
</p>
<p>
Clearly Elyria and Lorain should be doing some regional land use planning, because currently these big chain stores are playing one city off the other---and squandering land in the process. Dead malls are not just a waste product of the free market system—they represent mindless sprawl and poor use of a limited natural resource. 
</p>
<p>
I urge you to stop saying Yes to all these redundant stores, and instead come up with a land use plan that limits the size of big box stores, which amounts to nothing more than an elaborate game of musical chairs.
</p>
<p>
Elyria and Lorain will see no new jobs from all this leap frog development.”
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/92leAmIaLQQ" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-04-23T11:52:41Z</dc:date>
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    <item>
      <title>Morgan Stanley Downplays Wal-Mart’s Bite</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/McPwFfpyYBg/</link>      <description />
      <dc:subject>Sales/Stock</dc:subject>
            <content:encoded><![CDATA[<p>Is it credible when Morgan Stanley says Wal-Mart&#8217;s impact on grocery stores is more bark than bite?
</p>
<p>
In mid March, an analyst at Morgan Stanley floated the story that Wal-Mart was planning to slash its food prices beginning in April and launch a major media campaign to prevent market share from drifting to other grocers.
</p>
<p>
The Morgan Stanley report chopped up the food retail index like a vegematic. The analysis was described as a &#8220;threat&#8221; to the grocery industry, and &#8220;a major setback&#8221; for Wal-Mart&#8217;s competitors.&nbsp; &#8220;While this helps address Wal-Mart&#8217;s traffic woes,&#8221; the Morgan Stanley analyst wrote, &#8220;we view this as a major setback for the grocery stocks, which have been rallying on hopes of a return to more rational pricing.&#8221; 
</p>
<p>
This markdown on &#8220;10,000 items&#8221; was supposedly Wal-Mart&#8217;s response to nervous investors who feared that foot traffic was leaving the giant retailer as the recession eased. 
</p>
<p>
The media stories that accompanied the Morgan Stanley report noted that shares at competitors like Safeway, Supervalu, Kroger and Whole Foods all were down. Wal-Mart shares were down also. The Morgan Stanley report did not help anyone. 
</p>
<p>
So less than four weeks later, Morgan Stanley dramatically changed the tone of its message about Wal-Mart&#8217;s prices----as dramatically as the retailer&#8217;s reported price cuts. What began as a &#8220;threat&#8221; and &#8220;major setback&#8221; in mid March, suddenly became not &#8220;overly threatening&#8221; by mid April. The same Morgan Stanley analyst now had a very different take: &#8220;While the price cuts to date don&#8217;t appear overly threatening to the grocers, the threat of ongoing reductions does leave a cloud over the group, in our view.&#8221; Morgan Stanley wondered out loud if &#8220;Wal-Mart&#8217;s bark is worse than its bite.&#8221; Or, more appropriately, was Morgan Stanley&#8217;s bite worse than its bark?
</p>
<p>
This story is clouded by the fact that Morgan Stanley doesn&#8217;t just conduct price checks on Wal-Mart. Morgan Stanley is an intimate business partner with Wal-Mart. For years these two companies have been developing retail ventures. For example, the Morgan Stanley Real Estate Funds have been developing at least a dozen retail shopping centers in China, each anchored by a Wal-Mart, totaling 8 million square feet of retail area. Wal-Mart&#8217;s Vice President of Development for China told the media that the joint venture with Morgan Stanley &#8220;will add an entirely new level of mall development and management expertise to the China retail landscape.&#8221; 
</p>
<p>
Another example: In June, 2007, Morgan Stanley announced that it would own and finance solar electric power systems at seven Wal-Mart facilities in California, helping the giant retailer put on a green face to cover its expansive sprawl. 
</p>
<p>
Morgan Stanley said it learned about Wal-Mart&#8217;s price war with grocery competitors during a store tour and presentation with the retailer. But given the intertwined fate of these two companies, it&#8217;s not clear what to make of Morgan Stanley&#8217;s flip-flop analysis about Wal-Mart. 
</p>
<p>
First it sounds like Wal-Mart is going to eat its grocery competitors for lunch, then it turns out that Wal-Mart&#8217;s bite has no teeth. Why did Morgan Stanley decide to low-key Wal-Mart&#8217;s impact on its rivals? Could it be that Morgan Stanley&#8217;s comments were not helpful to it&#8217;s partner Wal-Mart&#8217;s stock?
</p>
<p>
What&#8217;s certain is that Wal-Mart&#8217;s &#8220;bite&#8221; has cut the grocery industry into small pieces. Wal-Mart was not in the grocery business until 1989. By 1992, the company only had 6 supercenters. But then things took off. Today, groceries account for more than half of Wal-Mart&#8217;s domestic sales. As the consultant Retail Forward wrote in 2003, &#8220;It&#8217;s hard to imagine that just a decade ago, Wal-Mart was barely on the food radar screen.&#8221; Now Wal-Mart is the whole radar.
</p>
<p>
What You Can Do: If you want to understand the real impact that this huge corporation has had on groceries, you have to look at the local trade area level. The Dallas Morning News, in reporting the Morgan Stanley story, noted that Wal-Mart now controls 40% of grocery sales---two and a half times greater than its nearest competitor Kroger. 
</p>
<p>
Wal-Mart has carved out 40% of the food market in many trade areas across the country---after people in the food business said Wal-Mart would never do groceries well. That&#8217;s the ugly truth hiding behind the soft &#8220;bark&#8221; stories out of Morgan Stanley. It wasn&#8217;t Wal-Mart&#8217;s bark that killed many regional grocery chains, including several this past year. 
</p>
<p>
It&#8217;s also important to state the obvious: Morgan Stanley prospers when Wal-Mart prospers, and they are business partners in making Wal-Mart the Emperor of Food. 
</p>
<p>
When do the anti-trust discussions begin?
</p>
<p>
Readers are urged to clip this article and email it to your Congressman at his or her website.
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/McPwFfpyYBg" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-04-21T12:40:24Z</dc:date>
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    <item>
      <title>Mike Duke Pulls in $19.2 Mil. This Year</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/uv3a2wKPe_Y/</link>      <description>Executive salaries have long been absurdly out of whack when compared to the average worker, and the trend has been growing more radical every year.</description>
      <dc:subject>News, Employees, Labor, Culture, Wages, United States, Labor Issues</dc:subject>
            <content:encoded><![CDATA[<p>Executive salaries have long been absurdly out of whack when compared to the average worker, and the trend has been growing more radical every year.
</p>
<p>
This year Walmart&#8217;s CEO, Mike Duke, was paid $19.2 million in direct salary, stocks, and other benefits. If this sounds like an absurdly high number, consider that this is actually less than he made last year. By nearly a third. That&#8217;s right, last year Walmart&#8217;s CEO made $28.4 million.
</p>
<p>
Despite the drop, Mike Duke still made nearly 1,000 times (actually 967 times) that of the average Walmart worker, who makes $11.24 an hour. Of course that is the official average Walmart lists, but it is skewed because many of the mid-level managers are still paid hourly and are included in that average. If you were to look at a Walmart cashier making $8 an hour (a category many Walmart workers would fall in to) working 34 hours a week (the average for a Walmart worker) 52 weeks a year, they would make just $14,144. Mike Duke made 1357 times more this year.
</p>
<p>
The comparison is astounding. It would take the average Walmart worker around a thousand years to earn what Mike Duke earned just this year, even after his compensation fell by a third.
</p>
<p>
Check out the article, which lists other highly paid Walmart execs, here.
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/uv3a2wKPe_Y" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-04-19T15:58:55Z</dc:date>
    <feedburner:origLink>http://walmartwatch.com/blog/archives/mike_duke_pulls_in_192_mil_this_year/</feedburner:origLink></item>

    <item>
      <title>How Much Is Walmart Scamming Your State?</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/jm9qwhQ9kkk/</link>      <description>This April 15th, when Americans are paying their taxes, Walmart is short changing states using tax loopholes and fancy accounting schemes.</description>
      <dc:subject>Ethics</dc:subject>
            <content:encoded><![CDATA[<p><a href="http://wakeupwalmart.com/feature/taxday/"><img align="right" src="http://wakeupwalmart.com/images/feature_pages/TaxDay2010long.jpg" /></a>Join activists across the country in calling on Walmart to pay their fair share of taxes this year.
</p>
<p>
Walmart uses tax loopholes to avoid paying taxes at a time when cash-strapped states are choosing between firing teachers and closing their budget gaps.&nbsp; Walmart&#8217;s tax advisors have given company executives a list of different schemes they could use to maximize profits by using tax loopholes, shorting state budgets at a time when states are hurting.
</p>
<p>
<a href="http://wakeupwalmart.com/feature/taxday/">Join us</a> in writing to you state tax authorities demanding an audit of Walmart.
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/jm9qwhQ9kkk" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-04-15T12:48:21Z</dc:date>
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    <item>
      <title>Vote For Walmart!</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/gkvNftSLl3s/</link>      <description>In the “sweet 16” round of Consumerist’s Worst Company in America March Madness competition, Walmart goes up against Bank of America. Go vote now!!!</description>
      <dc:subject>United States, Opinion</dc:subject>
            <content:encoded><![CDATA[<div style="text-align: center;"><img src="http://consumerist.com/header_final.PNG"></div>
<p>
In the &#8220;sweet 16&#8221; round of Consumerist&#8217;s Worst Company in America March Madness competition, Walmart goes up against Bank of America.
</p>
<p>
Go <a href="http://consumerist.com/2010/04/worst-company-in-america-sweet-16-bank-of-america-vs-walmart.html">vote</a> now!!!
</p><img src="http://feeds.feedburner.com/~r/Walmartwatchcom/~4/gkvNftSLl3s" height="1" width="1"/>]]></content:encoded>      <dc:date>2010-04-08T19:51:48Z</dc:date>
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    <item>
      <title>The Kind of Analysis Wal-Mart Hates To Read</title>
            <link>http://feedproxy.google.com/~r/Walmartwatchcom/~3/5tyhHyotC_U/</link>      <description>From big cities like Chicago, to small towns like Galt, California, local officials are so economically illiterate that they think a new retail building going up is synonymous with economic growth.</description>
      <dc:subject>Battle-Mart</dc:subject>
            <content:encoded><![CDATA[<p>From big cities like Chicago, to small towns like Galt, California, local officials are so economically illiterate that they think a new retail building going up is synonymous with economic growth. Instead, when Wal-Mart comes to town, all that happens is what the libertarians call the &#8220;creative destructionism&#8221; of the free market system. That&#8217;s a polite term for major economic displacement. 
</p>
<p>
The most often-cited reason that local officials give for approving a Wal-Mart is the double promise of jobs and revenues. But in many communities, a closer examination of the numbers does not support Wal-Mart&#8217;s voodoo economics reality. The latest example comes from the pages of The Batavia Daily News, from columnist Tom Rivers, who took a four year look at what Wal-Mart did economically to several towns in the Albion, New York region. 
</p>
<p>
Sprawl-Busters reported on November 10, 2004 that the Mayor of the Village of Albion, New York was pleading to save his community from the town of Albion&#8217;s Wal-Mart proposal. Village Mayor Ed Salvatore told officials from the town of the same name, that a Wal-Mart outside the Albion village center would be a disaster for his residents. &#8220;I believe it will be the demise of our community,&#8221; the Mayor pleaded. &#8220;The village of Albion will never survive that.&#8221; 
</p>
<p>
The Mayor said a proposed 155,000 s.f. Wal-Mart supercenter, which needed a rezoning from residential to commercial, would force many stores in the village central business district to close. The former head of the Orleans County Chamber of Commerce told town officials that a department store was needed, but not a supercenter. 
</p>
<p>
The Wal-Mart supercenter opened in Albion on June 14, 2006. The Daily News reported that Wal-Mart had hired 390 employees, but said nothing about the workers who lost their jobs at Ames when that retailer closed several years ago due to business lost to Wal-Mart. The only person at the festivities who seemed to connect the dots about Wal-Mart&#8217;s impact on the community was George Bower, chair of the Orleans County Legislature. 
</p>
<p>
At the Grand Opening, Bower handed Wal-Mart officials a letter for company CEO Lee Scott, asking the retailer to help the county attract a manufacturing company to Orleans. Bower told the Daily News that he was trying to make up for the 200 industrial jobs lost the month before Wal-Mart opened in nearby Medina, New York, when the Bernz-O-Matic company, which is a brand owned by Newell/Rubbermaid (another company almost destroyed by Wal-Mart), shut down its Medina plant and threw more than 200 local residents out of work. 
</p>
<p>
Bernz-O-Matic makes consumer products like torches and kits. One of their biggest customers is Wal-Mart. Bernz-O-Matic moved its plan to China, ostensibly to be able to produce cheaper torches for Wal-Mart and Home Depot. So Wal-Mart opens its doors with 390 employees (a number which will drop dramatically within months after the store opening) and on the other side of the ledger are the lost jobs at Ames and Bernz-O-Matic. 
</p>
<p>
Add to that the fact that the Wal-Mart supercenter has a grocery store, a garden center, an electronics center, a tire and lube express, a vision center, pharmacy, photo lab, and hair salon---all of which already exist in abundance in Albion. All of these stores inside the store will take most of their sales from existing merchants in the greater Albion area. Legislator Bower told Wal-Mart that he would love to see products sold in Wal-Mart that say &#8220;Made in Orleans County.&#8221; But Bower&#8217;s comments were lost. 
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Now four years later, columnist Tom Rivers is taking the toll of Wal-Mart damage. &#8220;I was dubious and I was worried. I knew the store, despite its best efforts and intentions, would cripple many of the small-business owners in Orleans County,&#8221; Rivers writes. &#8220;A mammoth store with probably more shelf space than all of downtown Albion and Medina simply couldn&#8217;t be absorbed into a shrinking local economy without hurting many other businesses.&#8221; 
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According to Rivers, his look back at the last four years shows &#8220;there is evidence about the store&#8217;s devastation of the village tax bases. The villages are suffering, with independent grocery stores gone, and their hulking buildings a shadow of their former assessments.&#8221; The last four years includes a difficult recession, Rivers notes, &#8220;But there&#8217;s no denying Wal-Mart, with its sheer immensity, has sucked too many sales out of the local economy.&#8221; 
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One victim was Dale&#8217;s Market, located on Albion&#8217;s Main Street, which went out of business in 2007. That property once was assessed at close to a million dollars---but now the Village has torn it down to build a library which pays no property or sales taxes. A regional grocery chain, Tops, opened a new store in Albion village three years before Wal-Mart. It had to ask the Village to lower its assessed value from $3.6 million to $2.75 million because of declining sales. 
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In the nearby towns of Holley and Medina, two Jubilee grocery stores shut down within six months of Wal-Mart&#8217;s opening. The Jubilee store in Medina was valued at almost half a million before Wal-Mart, and is now worth less than $100,000 after three years sitting empty. 
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All these retail closings, says Rivers, leave other taxpayers holding the bag: &#8220;It means the remaining residents and businesses will bear a bigger burden in keeping afloat the police departments, fire companies, DPWs and other services.&#8221; In total, the Village&#8217;s tax base has fallen from $143.82 million in 2007, to $141.88 million for 2009. So valuations have actually fallen 1.35% since Wal-Mart&#8217;s arrival---a reversal of fortune. The same is true in Medina. 
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Even in the town of Albion, where the Wal-Mart superstore is located, town officials gave the world&#8217;s wealthiest retailer a 50% tax break on town and county taxes. Even though Wal-Mart&#8217;s store is valued at $6.975 million, it is only paying tax on $4.85 million---a 30% tax break. The building will not pay full property taxes for another six years. The Village of Albion provides the store with water and sewer services, but gets no taxes from Wal-Mart. 
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Tom Rivers concludes: &#8220;Wal-Mart trumpets its slogan, &#8216;Save Money. Live Better.&#8217; But surveying the carcasses of former stores in Orleans County villages, the message rings hollow.&#8221;
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<strong>What you can do:</strong> It&#8217;s hard to know which is more appalling: the voodoo economics of Wal-Mart&#8217;s impact on Albion, and its direct connection with the closure of Bernz-O-Matic and Ames, or the impact on existing merchants catalogued by Tom Rivers since the store opened.
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How many of the workers at the Medina plant that shut down will shop at Wal-Mart? How many of them will stop by the hardware section and see Bernz-O-Matic products there that they used to make in Medina, now bearing a &#8220;Made in China&#8221; imprint on it? Will they make the connection? George Bower got the message, and he passed it on to Lee Scott. Wal-Mart is responsible for another company leaving an empty factory in Orleans county, and no amount of Wal-Mart clerks and baggers will ever make up for the lost manufacturing jobs and retail jobs that Wal-Mart convinces local officials would never happen. 
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Readers are urged to email the Town of Albion, NY Supervisor, Judith Koehler, at supervisor@townofalbion.com with the following message: &#8220;Dear Supervisor Koehler, If you read Tom Rivers&#8217; analysis of the impact of the Town&#8217;s Wal-Mart supercenter, the town of Albion might want to consider apologizing to the Medina and the Village of Albion for allowing a saturated market area to become flooded with groceries from a national chain like Wal-Mart, creating empty buildings and blighted properties in the process. To add insult to injury, your own taxpayers have been shortchanged by the unnecessary tax welfare deal you gave to Wal-Mart. I would urge you to at least renegotiate the corporate welfare deal immediately, and give the added Wal-Mart tax payments created by ending the tax break, to the Village. Right now, Wal-Mart is a symbol of the total lack of regional land use planning in Orleans county. It is this lack of coordination that allowed the Town to devastate the Village---just to give added market share to Wal-Mart. Anyone who participated in this welfare deal for Wal-Mart should be voted out of office by the residents of Albion, who could have used that money to offset the cost of police and fire services to protect Wal-Mart. It is embarrassing that the Town of Albion had no clue about how these projects work economically, and that town officials were perfectly happy to hurt their neighbors by building redundant stores.&#8221;
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