Handshake With Sam
While Wal-Mart’s founder, Sam Walton, steered his company’s growth over its first thirty years, he never let anyone forget that with such tremendous success come certain moral responsibilities. He led by example, and he did business with a handshake.
Today’s Wal-Mart has lost Sam’s way. That’s why we’ve proposed a new contract with Wal-Mart’s current leadership—to help Wal-Mart take its place as a responsible business leader for the new century.
Wal-Mart Moms: Concerned with the problems caused by Wal-Mart
Posted by Alex Goldschmidt
An article in today’s Wall Street Journal reports Wal-Mart recently conducted a survey to “test the voting preferences of men and women who are shopping at its stores.” Wal-Mart asked shoppers which candidate they’ll most likely vote for in November, and which issues facing the U.S. today are most important. The move not only gives politicians a look at a sought-after demographic - “Wal-Mart Moms” - it also places Wal-Mart at the heart of American politics.
Not surprisingly, the economy takes center stage for many of Wal-Mart’s shoppers. Like so many people living in the U.S. right now, Wal-Mart’s customers are trying harder than ever to make ends meet. And as the economy gets worse, many people are “trading down” to shop at Wal-Mart, even if they disagree with the retailer’s business practices.
Low wages, poor health care, and job losses are a major part of this picture. Despite Wal-Mart’s recurring suggestions that its low prices are a solution to our economic crisis, the retailer is actually a big part of the problem. By paying its workers so little and failing to provide health coverage for many of its workers, Wal-Mart is making it even harder for many families to stay afloat.
Congress is searching for answers to the economic problems we now face - whether they be emergency bailout measures or more long-term solutions like passing the Employee Free Choice Act. In the mean time, if Wal-Mart really wanted to help its shoppers with the issue they care about most, the company would start improving conditions for the lowest-earning members of its work force. That’s something Wal-Mart Moms on both sides of the political spectrum could support.
‘Wal-Mart Women’ Vote Remains in Play [Wall Street Journal]
ACNeilson Looks At “Wal-Mart Moms”… and Everyone Else Who Shops at Wal-Mart
Posted by Alex Goldschmidt
Wal-Mart stockpiles massive amounts of information about its customers. The retailer’s databases are enormous - bigger than the internet - and the information contained on its servers includes everything from which aisles shoppers choose to go down to the time of day chocolate milk sells quickest.
Now, the statistics firm ACNeilson (best known for its TV viewership ratings) is taking Wal-Mart’s data and helping the retailer understand its shoppers even better. At a recent conference of Wal-Mart suppliers, Neilson reps broke down how many cartons of eggs, car parts, and bags of dog food Wal-Mart customers buy each year. The study also revealed the average household incomes of Wal-Mart’s shoppers, the average number of trips each shopper makes and how much shoppers spent at the stores, on average. Ultimately, Wal-Mart hopes to use this information to customize store inventories and increase profits.
The study comes at a time when political analysts everywhere are desperately trying to understand Wal-Mart’s core demographic. “Wal-Mart Moms” may be the key to November’s election, some pundits say. Political alignment might not have been on Neilson’s questionnaire, but the study does provide some insight. According to Neilson, the average Wal-Mart shopper is a “pet-loving, pasta-eating, car-driving, gadget-obsessed dieter who either doesn’t care for cheese or buys it elsewhere.” (That part about the cheese may or may not impact the election directly.)
The data in the study doesn’t provide a complete picture of Wal-Mart’s shoppers - and it certainly doesn’t encompass all of the middle-aged women being wooed by politicians - but Wal-Mart is trying harder than ever to win over “the core female head of household” i.e., the “Wal-Mart Mom.” The retailer isn’t alone in catering to this powerful group not alone, and who knows - maybe quality dog food actually is the secret to winning the presidency in November.
Marketing firm looks at Wal-Mart shopper, trends [NW Arkansas Morning News]
Now At Wal-Mart: Upload Your Photos Directly to National Media, Beverage Containers
Posted by Media Team
It’s been a big day for Wal-Mart photo centers. Early this morning, news broke that an employee at a Louisiana Walmart store stole compromising photos of Jamie Lynn Spears, with intent to sell the images to the media. Because Jamie Lynn is a minor, and because getting your personal photos copied and sold by your photo developer is creepy, Wal-Mart could potentially face penalties for the act.
But that’s not all. News ALSO comes today that the retailer has partnered with Jones Soda, maker of delicious and unusually-flavored colas, to let customers order custom-printed soda cans at Wal-Mart photo centers. Just when you thought you’d never find soda packaging that embodied your life outlook, Jones Soda has made it possible.
We really hope these two events aren’t somehow connected. It’s bad enough that stories about Jamie Lynn flooded our Google alerts this morning: it’d be even worse if we have to see her staring out at us from the soda case at the deli, too. And for those of you interested, you don’t have to go to a Wal-Mart to get your face on a Jones soda can: you can order a six-pack right on their website, and yes, we’re planning to get a case.
Jones Soda introduces myJones at Wal-Mart photo centers [Smart Briefs]
Celeb-a-razzi: Wal-Mart may be in trouble over Brit, Jamie Lynn photos [Detroit News]
Wal-Mart Accused of Gouging More Prices for Hurricane Victims
Posted by Alex Goldschmidt
News broke last week that Wal-Mart raised gasoline prices at its stores in Texas just before Hurricane Ike hit the area. Consumers in the area didn’t fail to notice, despite the coming storm. Texas state law protects against price gouging, especially during a disaster or emergency.
Now, news from Arkansas tells that the Attorney General there will subpoena “30 gasoline retailers” as part of an investigation into gas price hikes around the time of Hurricane Ike. Though the article doesn’t list the gas retailers in question, we assume it includes Wal-Mart, which has several dozen gas stations in the state. From the news brief on the Arkansas News Bureau’s website:
Arkansas law prohibits businesses from raising prices for motor fuel, food and certain other products by more than 10 percent within 30 days of a declaration of emergency. Violators can be fined up to $10,000 for each transaction in which a customer is overcharged. Fuel prices in Arkansas rose dramatically over a three-day period during the storm’s mainland trek.
Consumerist also brings news of price gouging, but in a different place and on different items. A company insider in Kentucky explains the price of pre-charged cell phone batteries shot up to $19 a piece - almost doubling in cost, in some cases - in the days preceding the hurricane. When power was knocked out to parts of the state, the store sold out of batteries despite the higher price. From Consumerist:
Now today all of our car chargers go up nearly 50%. In fact, every charger, car or wall, in our store is a flat $19.00, when car chargers were $10.00 and wall chargers were $15.00 yesterday. This is hardly a coincidence, and it’s so blatently obvious to our customers. I can’t believe Walmart would do something so totally against their own mantra of Save Money, Live Better. This is more like “Raise Prices, Screw Suffering Customers!”
Price gouging disaster victims is exploitative and potentially illegal - but also destroys the good publicity Wal-Mart frequently seeks after natural disasters. The company holds high profile donation events and invites professional photographers, but clearly isn’t committed to helping disaster victims when there’s no PR benefit for the company.
For those of you who have visited a Wal-Mart store before or after a disaster or emergency, have you noticed higher prices on essentials?
Friday Blog Round-Up: Talk Like a Pirate Edition
Posted by Alex Goldschmidt
WAL-MART EARNS BUCKETS OF MONEY
In case you weren’t aware.
Winners and Losers [Floyd Norris on the New York Times]
As the stock market goes back to gyrating –the Dow has been up more than 100 points, and down more than 200, during the first two hours — here, courtesy of Howard Silverblatt of Standard & Poor’s, are the Lucky 13 and the Unlucky 13 for this year.
Lucky 13:
1. WAL-MART +$52.1 billion
MAN IT FEELS GOOD TO BE A WALTON
The Walton family is worth over $100 billion. Discuss.
The Waltons: SUPER DUPER RICH!!! [WakeUpWalMart.com Blog]
Of course there is nothing wrong with this family being so absurdly wealthy. No, our objection is that they make their profits on the backs of their workers by mistreating them and paying them poverty level wages. Contrasting a typical Wal-Mart workers wage with the Walton families wealth is mind boggling, and more than a little depressing. For example, it would take someone making $20,000 a year (which is a relatively high wage for your typical Wal-Mart cashier) on million years to net the amount of money one Walton sibling is worth.
If I Were A Rich Man… {Smart Profits Blog]
Warren Buffett with 50 billion takes second while Lawrence Ellison comes in at third with significantly less: a mere 27. Then fourth, fifth, sixth and… sixth… are all Waltons, somehow or another tied to WalMart founder Sam Walton. Jim Walton possesses a cool 23.4 billion, his brother S. Robson Walton has slightly less at 23.3, while their sister Alice Walton and sister-in-law Christy Walton tie at 23.2.
Walton Family Dots 10 Richest Americans List [Family Store Online]
Jim Walton, son of Wal-Mart Stores Inc. founder Sam Walton, reclaimed a leading spot this year at No. 4 with a $23.4 billion fortune after falling off last year. ... Eldest brother Robson Walton, 64, comes in a close second with $23.3 billion, landing him in the No. 5 spot. He is chairman of Wal-Mart. WHAT’S IN **YOUR** WALLET?
Forbes 400 richest out [Writing on the Wal]
The Walton’s, still the friends of downtrodden shoppers everywhere…
Forbes 400: List of the Richest Americans [Young, Famous and Fashionable]
The Walton family are all stinkin rich, controlling abt 40% of the worlds largest retailer,
illegal child labor marti meanworkers can’t unionize martwoops.. i mean Walmart, with abt $23B each.
After the jump, shopping for groceries, reasons not to shop at Walmart, and sure signs the economy is REALLY bad.
Read the rest of this story ...
Wal-Mart Reputation Problems Lead to Massive Image Overhaul
Posted by Alex Goldschmidt
In case you hadn’t noticed, Wal-Mart has received some criticism for its business practices over the last few years. Condemnations of low wages, discrimination, environmental damage, damage to local economies and sweatshop sourcing have come at Wal-Mart from all angles. At some point, someone at the company realized these attacks might be bad for business.
So the company went on the offensive. Charles Fishman, author of The Wal-Mart Effect, explained to a conference of editorial writers this week that in recent months, Wal-Mart has made a massive effort to improve its image. Whereas the retailer once focused on lowering prices regardless of the cost, attacks on the company’s ethics made Wal-Mart realize the high price of behaving badly.
Fishman is certainly right on this point: after years of criticism, it seems Wal-Mart’s leadership finally recognized the value of a good reputation. Since its revelation, Wal-Mart has worked to highlight not only its low prices but its good deeds too, spending millions to publicize its environmental efforts and charitable giving. A new ad campaign, a new slogan and numerous public appearances by company executives drive home Wal-Mart’s new message: We’re not all bad, really.
Wal-Mart’s work to become a socially responsible company, however, is far from done. The company’s labor problems remain completely unresolved: wages and benefits for hourly workers are still paltry, allegations of union-busting remain rampant, and the company’s discriminatory practices have resulted in dozens of lawsuits in the last year alone. Labor issues are the most expensive to resolve, but a recent study (PDF) shows that shoppers take a company’s labor practices into consideration above all other social responsibility issues. The company cannot and will not succeed with its image overhaul until these issues are addressed.
Even Wal-Mart’s highly-touted environmental campaign has problems. While the company cites reduced packaging and organic cotton among its crowning achievements, Wal-Mart’s massive energy consumption, unsustainable land use, and unethical sourcing practices negate any positive impact the company might have. Poor product quality contributes to environmental problems too, and several recalls over the last year and a half reveal the high price of cutting costs. The company’s relationship with local communities continues to be a problem as well.
Like Mr. Fishman, we are also interested to know the impact of Wal-Mart’s environmental footprint - both good and bad. But any examination of Wal-Mart’s sustainability efforts should take into account the company as a whole - with all its problems, from factory to shopping cart - not just the side Wal-Mart wants us to see.
Two say Wal-Mart image on mend [Arkansas Democrat-Gazette]
Walton Family Members Claim Four Slots on Forbes’ List of Top 10 Richest Americans
Posted by Alex Goldschmidt
Ah, to be a Walton. While most of America struggles to keep their houses, afford basic food items and preserve their dwindling retirement funds, the Waltons have made a big leap up on Forbes’ list of the top 400 richest Americans and now comfortably reside in slots four through seven on the list of top ten wealthiest people in the country. That’s up from their rank last year - when Jim, Rob, and Christy were tied for 12th place, with their sister Alice coming in right after them at 15th.
Sam Walton’s four children aren’t the only Walton family members on the list: E Stanley Kroenke and his wife Ann Walton Kroenke also make an appearance, as does Sam’s niece, Nancy Walton Laurie. Taken together, the family is worth over $100 billion.
That’s more than an average Wal-Mart worker could earn in ten thousand lifetimes. Many of Wal-Mart’s hourly employees live in near-poverty, often earning so little that they qualify for government assistance. Basic life needs - housing, food, health care - are often out of reach, even for employees working full time. The Walton family’s wealth is obscene in comparison.
Wal-Mart executives have refused to raise wages for the company’s lowest earning employees, stating that such increases would cut in to company profits. Obviously, profitability is not a problem. As Wal-Mart sees record sales and the Walton family climbs to the top of America’s economic ladder, the company should be ashamed for not sharing its wealth with its lowest-earning workers.
The 400 Richest Americans [Forbes]
In Memoriam: Wal-Mart Blog Dies Slow, Quiet Death
Posted by Media Team
Check Out, we hardly knew ye.
Remember Wal-Mart’s Check Out Blog? The one that the New York Times gushed over back in March? The rowdy band of nine fearless buyers Wal-Mart unleashed to conquer the blogosphere with unfiltered wit and opinion? The birth of Check Out was a time of youthful idealism: finally, a corporate blog where ideas could run free, and highly paid marketers could say what they truly felt. The future looked bright.
But less than a year later, Check Out is dying.
We’ve counted three posts on the site in the last 36 days. The few posts tend to be either on video games or apologies for writing so few posts.
Blogger Susan’s last entry reads:
Just wanted to apologize for being out of touch for the past few months! Of course I have a reason...I was recently promoted to the Merchandise Manger over the Video Game and PC software categories. I have been busy learning my new role and feel terrible that I haven’t posted anything as of late.
Russell has also stopped writing, leaving the simple, homespun world of Check Out for the bright lights of more exciting things:
But, let me tell you blogging is hard work. Anyone that consistently maintains any type of online commentary is to be greatly commended. It isn’t so much finding time to post, for me. It isn’t even writer’s block. The problem is finding a compelling story to tell, one that I think other people would find interesting.
And Tifanie echoes Russell’s sentiment, sadly solidifying Check Out’s ghost town status:
I feel Russell’s pain on the blog front....if you would like to know something specific or have an interest you would like me to expound upon, feel free to make the request; otherwise, you will be subjected to my ramblings.
Most sadly though, sustainability guru Rand Waddoups has been missing in action since mid-July. Perhaps he got moved back to salty snacks and has secluded himself for months, racking his brain to invent the greatest Wal-Mart-exclusive salty snack of all time. (Rand: just let it go, it’s already been done.)
Meanwhile, the rest of us are left to mourn the loss of yet another Wal-Mart social media project. We can only hope another, similarly misguided replacement will come along soon...