- ShopRite, Wal-Mart to face off again [Vineland (N.J.) Daily Journal]
Pat Bottino Sr. knows what it's like to take on Wal-Mart in the grocery business. Now, he has to do it again. Bottino's family owns a ShopRite in Washington Township, where two years ago Wal-Mart opened a Supercenter selling a full line of groceries. Next year, Wal-Mart plans to open a Supercenter in Vineland on West Landis Avenue near Delsea Drive.
- Lawmaker questions the cost of Wal-Mart [Vineland (N.J.) Daily Journal]
State Assemblyman Nelson Albano welcomes commercial growth and new jobs in his legislative district. But he doesn't want a Wal-Mart Supercenter in his city. In 2004, when the company first proposed building a Supercenter on West Landis Avenue near Delsea Drive, Albano was among dozens of union employees who spoke out against the project at city meetings
Friday, August 10, 2007
New Jersey fights back
Protest Wal-Mart’s Wholesale Entry
Wal-Mart, in a struggle to expand its global reach, is trying to enter India through the back door, but many consumers here have taken notice.
Monday, August 06, 2007
Wal-Mart Top Stories
- A survey in Annapolis, Maryland shows citizens would rather have a public park than a Wal-Mart
- Kathy Maznicki, a Wal-Mart worker from Connecticut is accusing Wal-Mart of more and more racism. Maznicki, 48, who is white says "Look at the managers - at least those at the Wal-Mart store here in Newington, They're all white. New Britain is not the only problem store" Maznicki who's job is now on the line says she doesn't care and that people need to know "the truth."
- Family sues Wal-Mart over sex abuse of their son
Wednesday, August 01, 2007
Wal-Mart sued over accounting practices [Arkansas Democrat Gazette]
A California trampoline vendor is suing Wal-Mart Stores Inc., claiming the retail giant secretly withdrew more than $ 400, 000 from the supplier’s account as part of a fraudulent accounting practice, according to a complaint filed in federal court on Tuesday.
Monday, July 23, 2007
Wal-Mart Apparel Executive Resigns (WSJ)
Wal-Mart Apparel Executive Resigns
By KRIS HUDSON
July 21, 2007; Page A3Wal-Mart Stores Inc. will base its women's clothing executives in Manhattan to stay on top of fashion trends, following the resignation of a top apparel executive at its Bentonville, Ark., headquarters.
The departure of Claire Watts, executive vice president of apparel merchandising, underscores the difficulties the retailer faces in turning around the unit and reigniting its sales growth overall. Her resignation leaves the division at least temporarily in the hands of chief merchandising officer John Fleming and a newly promoted executive.
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Wal-Mart hasn't yet decided if it will recruit someone to replace Ms. Watts as executive vice president of apparel. It has named Dottie Mattison, formerly chief merchant at its Walmart.com unit, as senior vice president and general merchandising manager of women's apparel. Ms. Mattison will handle Wal-Mart's merchandising, design and product strategy for women's apparel from its offices in Manhattan.
Read the entire article here
Thursday, July 19, 2007
Friday, July 13, 2007
Wal-Mart to Lease Studio in Manhattan
Wal-Mart has agreed to a 12-year lease for the new studio, according to Alexander Chudnoff, executive director at Cushman & Wakefield, a real-estate broker for the deal. The agreement demonstrates a long-term commitment by Wal-Mart to attract more top-notch talent to pick and design its fashions. That effort has been hampered in part by the location of Wal-Mart's headquarters in Bentonville, Ark.
Friday, July 06, 2007
Where are our Jobs going? CNN Money explains
Attention shoppers: No jobs here
Retail employment numbers keep coming up short, a sign of tighter cost control by retailers, and perhaps worse service.
"NEW YORK (CNNMoney.com) -- If you want to see where the jobs aren't, go shopping."
In an unrelated article, Errol Lewis explores the now what question...Now that Big Box Stores have been kept out Unions and politicians owe an answer to communities on where to buy quality products for an affordable price... Keeping Big Box stores are just part of the solution.
Wal-Mart's labor pains
Wal-Mart's labor pains
Groups are winning the fight to keep the big box
away, but now there's bigger battle to aid poorBy ERROL LOUIS
DAILY NEWS COLUMNISTThursday, March 29th 2007, 4:00 AM
New York City's labor movement is about to take a victory lap for persuading Wal-Mart, the retail giant, to give up its attempts to open a store in Manhattan.
An unexpected, exasperated statement by Wal-Mart CEO Lee Scott to The New York Times this week - "I don't care if we are ever here. ... I don't think it's worth the effort" - appears to write the final chapter on years of searching in vain for a foothold.
Scott later said that the company still would like to set up shop somewhere in the outer boroughs. But that will be a tall order.
For years now, in every place the company looked for a home, labor unions, lobbyists and politicians have thrown up roadblocks, sometimes by passing zoning rules to exclude Wal-Mart's trademark megastores.
Now the unions and politicians that worked so hard to keep Wal-Mart out of Gotham have a moral obligation to help low-income New Yorkers find another way to get low-cost goods.
The opposition to Wal-Mart by organized labor has been understandable, even commendable. The company is notorious for using union-busting tactics: In 2000, after a majority of butchers in a Jacksonville, Tex., Wal-Mart voted to unionize, the company simply stopped carrying fresh meat and fired all the butchers.
That hardknuckled approach goes hand in hand with offering lousy pay and skimpy benefits to employees. Many full-time Wal-Mart workers live near the poverty line and rely on government benefits or a spouse's health benefits to get by.
So many women have complained about Wal-Mart's job-assignment and promotion practices that more than 2 million women - current and former employees - have banded together in the largest sex-discrimination lawsuit in U.S. history.
But opposing Wal-Mart's odious practices is only half the equation. The anti-Wal-Mart forces also need to face the fact that working families in our city, including union households, routinely pay significantly more for food, clothing and other necessities than do suburbanites who have access to Wal-Mart and other big-box stores.
It's a serious problem. For decades, inner-city neighborhoods across America have watched supermarkets and retail stores vanish, leaving an impoverished captive audience with few choices of what to eat or wear.
Study after study has confirmed what inner-city residents already know all too well: It's hard, and sometimes impossible, to find fresh, cheap produce in the ghetto. Some bodegas and small supermarkets carry organic and low-sodium foods, but not nearly enough.
Every serious discussion of the inner-city epidemic of chronic diseases like hypertension, obesity, diabetes and heart disease eventually bumps into the urgent need to make better and cheaper goods available.
Beyond the question of food isthe simple, vital matter of helping poor people save money. Afamily that pays less for everything from diapers and baby food to coats, shoes and dresses can easily end up saving $400 to $500 ayear - a significant amount for a household with $20,000 to $30,000 in income.
The unions and politicians who keep chasing Wal-Mart away should keep holding strategy meetings - this time, to work on ways to bring supermarkets, food co-ops, green markets and discount retailers to the city residents who need them most.
Monday, July 02, 2007
Walmartopia Musical Headed for Off-Broadway

Walmartopia. Walmartopia The Musical!, which had its New York debut at the 2006 New York International Fringe Festival, is headed to the Minetta Lane Theatre for a commercial run. Check out the site http://www.walmartopia.com/ to learn more.
Wal-Mart goes back to basics....
NEW YORK (FORTUNE) -- Wal-Mart, the world's largest retailer, has decided to curb its support of gay, lesbian, bisexual and transgender (GLBT) organizations after conservative Christian groups threatened a boycott, and after some of its own employees expressed disapproval. Read the entire article hereLast year in an attempt to fix their conservative image, Wal-Mart began its relationship with Gay and Lesbian groups. The relationship was always a fine line Wal-Mart walked, their loyal southern conservative customers were offended by their decision to do business with GLBT organizations, hundreds of protests occurred at Wal-Marts throughout the south. Petitions were signed (check out this site which says "SAVE WAL-MART FROM THE RADICAL HOMO AGENDA") Here is yet another reason Wal-Mart will never be apart of New York City.
Thursday, June 28, 2007
Wal-Mart and another lawsuit
Of course, even if Wal-Mart loses, $2 million is barely a blip on the radar for a company that took in more than $355 billion in revenues in its most recent fiscal year. Still, Haddad's victory comes at a difficult time for Wal-Mart, with the company struggling to defend its reputation on a number of fronts. Wal-Mart has come under fire for the wages and benefits that it provides workers and for its impact on small, local retailers. Investors have been unhappy with its stagnant stock (see BusinessWeek.com, 4/30/07, "Wal-Mart's Midlife Crisis"). And it's become a favorite target among the Democratic Presidential candidates, including Barack Obama and John Edwards (see BusinessWeek.com, 11/16/06, "Can Barack Wake Up Wal-Mart").
As we all know Wal-Mart is still currently involved in the largest gender discrimination suit in history, the company has always held male employees at a higher regard than females. Women employees who have been pregnant have been fired, and threatened by management. We expect more from the worlds largest employer. As Wal-Mart enters low-income areas and destroys all competition, stores close down and community members are forced to work at Wal-Mart, Wal-Mart knowingly takes advantage of all its employees whether it be pay, gender discrimination, hours, or simple mistreatment of workers, Wal-Mart takes every advantage they can to hold more power over its employees and the community it's in.
Monday, June 11, 2007
Cheap E Coli
No illnesses had been reported. Recalled products were sent to Alabama, Arkansas, Colorado, Kansas, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, Tennessee and Texas, Tyson said. AP
Thursday, June 07, 2007
Daily Wal-Mart headlines
Wal-Mart and GE Money plan on releasing a prepaid Wal-Mart Money Card for the estimated 80 million Americans without a bank account.
FENDI AND WAL-MART SETTLE SUIT...
To sum it up, Wal-Mart was being sued for by Fendi for selling 'knock off's of their product...
Pink Diamonds, Discounted Boats and a Looming Lawsuit Plague Wal-Mart
ABC News reports on the trouble CEO Lee Scott has got himself in violating his own business ethical code.
Wednesday, June 06, 2007
US Rep Jerrold Nadler rips Wal-Mart over container security
"Terrorists could hide a nuclear weapon inside a shipping container bound for New York at any time, and large importers such as Wal-Mart are partly to blame for opposing greater scanning checks."
“Wal-Mart, America’s largest importer, has actively worked to oppose the scanning of all cargo containers coming into our ports,”Nadler is taking steps in the right direction, we all know about Wal-Marts irresponsibility as an employer, these precautions on imports should be taken seriously. Though Wal-Mart continues to act irresponsible, we are not surprised.Read the article in Todays Metro.
Thursday, May 31, 2007
Westchester awaits answers from Wal-Mart developers
RAMAPO - Town officials are waiting for the developer of the proposed Wal-Mart Supercenter to complete a draft environmental impact statement before referring the project to the Planning Board.
The Community Design Review Committee, an advisory group to the Planning Board, wants an additional review of the potential environmental fallout, but the developer has not yet filed the information with the town.
Richard Lipsky, spokesman for the Neighborhood Retail Alliance, yesterday said its traffic studies predict 3 million car trips annually to a Monsey Wal-Mart.Lipsky, whose group has opposed Wal-Mart plans in New York City, said the store would adversely affect Spring Valley and Monsey merchants.
Wednesday, May 30, 2007
Wal-Mart dominates the news again
Low prices, it turns out, can be bad for business. A confidential report prepared for senior executives at Wal-Mart Stores concludes, in stark terms, that the chain’s traditional strengths — its reputation for discounts, its all-in-one shopping format and its enormous selection — “work against us” as it tries to move upscale.
Washington Post: Wal-Mart report questioned strengths: report
Wal-Mart is not seen as "a smart choice" in categories like electronics, apparel, home decor, pharmacy and grocery, where "saving money and time are not the be-all, end-all drivers," the report said.
New York Times: Ad Agency: Wal - Mart Lacking Respect
GSD&M had handled Wal-Mart's advertising for 19 years until the retailer hired a new group during the winter. For its 55-page document, ''Wal-Mart: Positioning Report,'' GSD&M conducted in-home interviews with 24 groups of consumers and 20 individuals nationwide and took some of them shopping.
Tuesday, May 29, 2007
Wal-Mart CEO broke ethics policy
Wal-Mart chief executive Lee Scott violated the company's ethics policy and accepted trips and received discounts on yachts and jewelry from a vendor, according to documents filed by a marketing executive fired by Wal-Mart in December.
In her latest court filing aimed at the world's largest retailer, former marketing executive Julie Roehm also attacked other senior executives for accepting trips, concert tickets and other gifts from vendors.
Roehm is suing the company over her firing, and challenging Wal-Mart's charges that she accepted gifts from vendors and had an affair with a subordinate.
In the documents filed Thursday in the U.S. District Court in Detroit, Roehm contends that CEO Scott and his wife frequently used private airplanes provided by entrepreneur Irwin Jacobs to travel to their residences in Longboat Key, Fla., and Las Vegas. Through his relationship with Jacobs, Scott was able to purchase a large pink diamond for his wife at a preferential price, she claims.Please read the entire article here
Monday, May 14, 2007
Bill to ban Big Box Banks
We'll keep everyone up to date on the latest news regarding this bill.WASHINGTON (Reuters) - U.S. senators introduced on Thursday bipartisan legislation that would block retailers such as
Home Depot Inc. from operating a bank.The bill, which is co-sponsored by Democrats Sherrod Brown of Ohio and Tim Johnson of South Dakota, and Republican Wayne Allard of Colorado, mirrors a version that is expected to win approval by the full House of Representatives.
The House is expected to consider it this month.
The lawmakers, who are members of the Senate Banking Committee, said panel Chairman Christopher Dodd has not yet expressed support for the bill.
However, such a ban is opposed by another member of the committee, Utah Republican Robert Bennett, whose state is home to many of the commercially owned banks known as industrial loan companies (ILC).
``He does not support this bill,'' a Bennett spokeswoman said.
Like the House version, the Senate bill would ban applications to the Federal Deposit Insurance Corporation to start a new ILC or acquire existing ones.
It would also halt commercially owned ILCs established after October 1, 2003, from expanding into other states or being sold to another retailer. Commercial companies that created ILCs before that date will be allowed to keep them, but cannot sell them to another retailer.
The bill would also expand supervision authority for the FDIC and reduce duel supervision for some ILC holding companies, such as big investment banks, that are already regulated by the Securities and Exchange Commission.
The senators said the bill will not include an exemption to allow auto companies to establish an ILC to help sell their cars, trucks and motorcycles.
``I hope we don't get into exemptions,'' Allard told reporters at a news conference.
ILCs are state-chartered banks with access to federal deposit insurance. They can offer deposit accounts, mortgages, credit cards, loans and other services.
U.S. banks, especially smaller ones, have voiced concern about a surge in ILCs over the last two decades, saying they could be forced out of business if big retailers enter the industry. Target Corp. already owns an ILC.
In March, Wal-Mart withdrew its ILC application, but Home Depot is still seeking permission to buy an ILC.
The ILC industry has combined assets of more than $170 billion. The biggest ILC bank is Merrill Lynch Bank USA, which had about $67 billion in assets last year.
Wednesday, May 09, 2007
Photos from Tuesdays Rally
Monday, May 07, 2007
Friday, May 04, 2007
Tuesday, May 01, 2007
Wal-Mart accused of 'climate of fear'
In a 210-page report Monday, the largest U.S. retailer was accused of creating "a climate of fear" through a "relentless anti-union drumbeat" at its stores.
"Wal-Mart workers have virtually no chance to organize because they're up against unfair U.S. labor laws and a giant company that will do just about anything to keep unions out," said Carol Pier, a Human Rights Watch senior researcher.
The report said its investigators found in most cases Wal-Mart begins to indoctrinate workers and managers to oppose unions from the moment they are hired.
All efforts to organize among the company's 1.3 million employees in the United States are immediately squashed, it charged.
The group urged Wal-Mart to stop its alleged anti-union activity and called on Congress to pass the Employee Free Choice Act to protect workers' rights.
Check out the article as the Washington Post reported. Wal-Mart claims its employees have rejected unionization because they have "every opportunity to express their ideas, comments and concerns." Which is couldn't be further than the truth...How about Wal-Mart closing down a store when a union is voted in? The truth is if Wal-Mart became union employees would be better off, communities would be better off and this never ending debate could be over.
Today's Wal-Mart Mishap




A lawsuit in New Mexico alleges that Wal-Mart sold ammunition to an unstable man who fatally shot another man six hours later in Las Cruces.Kenneth Rauch, 49, of Las Cruces has been accused of killing 27-year-old Eusebio Escobedo. From Mexico, Escobedo, his fiancee and her 3-year-old son had stopped at a Las Cruces gasoline station when a man fired a gun at the car twice, hitting Escobedo.
The lawsuit alleges Rauch was under the influence of alcohol and mentally disturbed when he bought shotgun shells at a Wal-Mart in Las Cruces.
A Wal-Mart spokesman says the company had not seen the complaint and couldn't comment.
Thursday, April 12, 2007
Dirty Players
But wait there is more, Wal-Mart Watch has created a quiz to show everyone how much spying Wal-Mart actually does! It's a very eye opening and scary reality, take the quiz here.
We wonder what www.paidcritics.com would have said if they weren't exposed for what they really are. These constant scandals, fake blogs, and spying make us question what hides behind the yellow smile.
(To learn more about the fake blogs just read the post underneath this one for a quick laugh)
Monday, April 02, 2007
Farewell to our friends at Paidcritics.com
Working Families for Wal-Mart -- a national advocacy group funded primarily by Wal-Mart Stores Inc. to combat mounting criticism -- is suspending its site called paidcritics.com.
The suspension of paidcritics.com appears to be the latest in a series of stumbles for Working Families For Wal-Mart. Last October, Ron Galloway, a filmmaker whose work praised Wal-Mart, quit the group over the pay caps adopted in August. At the time, Sheridan said that Galloway had left over environmental policy differences. In August, civil rights leader Andrew Young stepped down as chairman of the steering committee after making remarks that were seen as racially offensive.
Thursday, March 29, 2007
Is Wal-Mart really forgetting about Manhattan?
Wednesday, March 28, 2007
Wal-Mart’s CEO on New York, “I don’t care if we are ever here.”
Wal-Mart Chief Writes Off New York
Wal-Mart to New York: fuhgeddaboudit.
Frustrated by a bruising, and so far unsuccessful battle to open its first discount store in the nation’s largest city, Wal-Mart’s chief executive said yesterday, “I don’t care if we are ever here.”
H. Lee Scott Jr., the chief executive of the nation’s largest retailer, said that trying to conduct business in New York was so expensive — and exasperating — that “I don’t think it’s worth the effort.”
Mr. Scott’s remarks, delivered at a meeting with editors and reporters of The New York Times, amounted to 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. In recent years, Wal-Mart has encountered stout resistance to its plans to enter America’s bigger cities, which stand as its last domestic frontier.
Much of the opposition to Wal-Mart in cities like New York is led by unions. Organized labor, fearing that the retailer’s low prices and modest wages will undercut unionized stores, have built anti-Wal-Mart alliances with Democratic members of city councils.
Yesterday, labor leaders, upon learning of Wal-Mart’s apparent retreat from New York — or at the very least Manhattan — returned Mr. Scott’s sentiment.
“We don’t care if they’re never here,” said Ed Ott, executive director of the New York City Central Labor Council. “We don’t miss them. We have great supermarkets and great retail outlets in New York. We don’t need Wal-Mart.”
For Wal-Mart, New York City has long loomed as a tantalizing prize — the home of more than eight million consumers and attention-grabbing stores for just about every major retailer in the country.
But Wal-Mart, a cost-minded retailer known for its dowdy merchandise, and New York, a city of excesses known for cutting-edge style, have long had an uneasy relationship.
Wal-Mart executives have argued that low prices would be the universal language that bridged the gap. So far, they have not.
During the questioning, Mr. Scott repeatedly referred to New York, but after the meeting a Wal-Mart spokeswoman, Mona Williams, called to say that Mr. Scott was referring to only Manhattan, not the entire city.
Wal-Mart, which has nearly 4,000 stores in the United States, has sought to open stores in Rego Park, Queens, and in Staten Island, but both plans fell through in the face of intense union, community and political opposition.
Mr. Scott said yesterday that the opposition to Wal-Mart in New York, Chicago, Cleveland, Los Angeles and other cities had a common thread: “The glue is the unions.”
Despite setbacks in each of these cities, Wal-Mart has had success in urban areas. In Chicago, for example, Wal-Mart opened a store last year that attracted thousands of job applicants and has, Mr. Scott said, performed better than expected.
He said that Wal-Mart executives have lobbied for a store in New York, but he said he remains unconvinced. “It’s too hard to make money here,” he said.
Late yesterday, Ms. Williams sought to amend Mr. Scott’s remarks.
“Entering New York has been difficult, but not something we rule out,” she said in an interview. “Lee said he personally didn’t care if we built stores there or not. It might be more trouble than it’s worth, but that he would leave that up to the real estate group that makes these decisions.”
As he does in many public appearances, Mr. Scott was quick yesterday to talk up the chief potential benefit of a Wal-Mart in New York City, particularly for its many struggling residents with modest incomes: lower prices because of the chain’s vast purchasing power and highly efficient distribution system.
Surveys have repeatedly shown that Wal-Mart’s grocery prices are typically 10 to 30 percent lower than those of its competitors.
But labor leaders assert that while Wal-Mart’s prices are low, its wages and health benefits are often so skimpy that they leave many workers below the poverty line and pressure competitors to reduce pay and benefits.
“We don’t like how they do business,” Mr. Ott, the New York union official, said.
But as Mr. Scott sees it, there is another reason Wal-Mart has such a hard time making inroads into some of the nation’s biggest enclaves. Speaking about what he sees as snobbish elites in New York and across the country, Mr. Scott added, “You have people who are just better than us and don’t want a Wal-Mart in their community.”
Tuesday, March 13, 2007
Our work paying off...
NEW YORK
A Banc of America Securities analyst on Friday said union campaigns against Wal-Mart are beginning to hurt the world's largest retailer's operations.
In a note to investors, Bank of America analyst David Strasser said Banc of America spoke to representatives from the Service Employees International Union and the United Food and Commercial Workers International Union to discuss why Wal-Mart is a focus for unions.
The three groups sponsoring a campaign to force Wal-Mart to make changes including improving pay and benefits, include Change To Win, a group of seven unions including SEIU and UFCW, WakeUpWalMart.com, a project of the UFCW and Wal-Mart Watch, an independent non-profit.
The groups have said that Wal-Mart is "the proverbial 800-pound gorilla, and therefore they get the highest return on investment by focusing on Wal-Mart," Strasser wrote.
"This union fixation has cost Wal-Mart real estate sites in key locations, adversely impacted comp store sales to some degree, and has distracted management from focusing on its retail strategy," Strasser wrote. "Additionally, (Chief Executive) Lee Scott now spends a large amount of time improving Wal-Mart's image domestically and abroad, and Wal-Mart has been forced to focus advertising dollars on defending their brand.
"This is surprising considering the positive impact (Wal-Mart) has on its low income consumers and the broader U.S. economy."
Strasser, who rates Wal-Mart "Buy," added that the degree of impact was difficult to quantify. However, because having to fight the campaign has forced a change in advertising strategy to improve its corporate image, the campaign might be ultimately good for the company.
"We believe that Wal-Mart has an advertising budget that approximates $580 million, which is increasingly being allocated to brand image marketing to fight these attacks," Strasser wrote.
Wal-Mart Stores Inc. shares fell 49 cents to $47.40 during afternoon trading on the New York Stock Exchange.
Wednesday, March 07, 2007
Wal-Mart tapping phone calls...
Wal-Mart Says Worker Taped Reporter’s Calls
Federal investigators are looking into the actions of a computer systems technician at Wal-Mart Stores who, over a period of several months, intercepted pager and text messages and also secretly taped telephone conversations between Wal-Mart employees and a reporter for The New York Times, the company said yesterday.
The United States attorney’s office for the Western District of Arkansas and the Federal Bureau of Investigation are assessing the actions of the employee and others inside Wal-Mart to determine whether federal and state laws were broken and whether they have jurisdiction in the matter, according to spokesmen for the investigators’ offices.
Wal-Mart said the technician was not authorized to monitor and tape the conversations between members of its media relations staff and Michael Barbaro, a retail reporter for The Times.
The company did not say what led the technician to make the recordings or why Mr. Barbaro’s conversations were the target.
Over the last year, Mr. Barbaro has written dozens of articles about Wal-Mart, including some that were based on internal company documents that were given to him by union-financed groups that were critical of Wal-Mart’s business practices.
Mona Williams, a spokeswoman for Wal-Mart, which is based in Bentonville, Ark., said the company fired the technician and a supervisor yesterday. A third manager in Wal-Mart’s information technology group was disciplined. Ms. Williams declined to identify the technician or his supervisors.
H. Lee Scott Jr., Wal-Mart’s chief executive, called the chief executive of The New York Times, Janet L. Robinson, early yesterday to explain the situation and apologize, Ms. Williams said.
Ms. Williams added that she contacted Mr. Barbaro and personally apologized to him, as well.
Wal-Mart said it began an internal investigation into the matter on Jan. 11 after executives were notified by an employee about the recordings. It then notified the United States attorney’s office two days later.
Over the course of a two-month internal investigation, Wal-Mart discovered that the technician had used a program that identified calls coming in from, or made to, Mr. Barbaro at The Times’s New York headquarters from last September to mid-January, Ms. Williams said. The inquiry involved an outside technology firm that scoured more than 100 computer drives and other devices, she said.
Members of the media relations group, including Ms. Williams, were unaware they were being taped, Ms. Williams said.
“No one knew he was recording these conversations,” Ms. Williams said in a conference call with reporters yesterday afternoon. “As a matter of fact, I’m not even sure he knew whose conversations he was recording. He simply programmed in the reporter’s phone number and captured those calls.”
It is unclear whether the technician was able to sort Mr. Barbaro’s calls from those other Times reporters might have made to Wal-Mart since all calls from the newspaper’s New York office register on caller ID screens as a series of numeral 1s.
The technician told investigators of some motives for his actions, Ms. Williams said, but she declined to say what they were because of the continuing investigations.
In a statement, a spokeswoman for The Times, Diane C. McNulty, said: “We are troubled by what appears to be inappropriate taping of our reporter’s conversations. At this point, we don’t know many of the key facts, such as what the purpose of this taping was and the extent, if any, to which the action was authorized.”
Mr. Barbaro declined to comment.
At first blush, it does not appear that the taping of the conversations was illegal.
Under federal and Arkansas state law, a telephone conversation can be recorded if one party has given consent. Wal-Mart said that under its policy, all employees give their consent to the monitoring and recording of their calls made through Wal-Mart systems and equipment.
Wal-Mart said, however, that calls were monitored only in cases of suspected criminal activity or fraud and only with written consent from the company’s legal department. No approval for the recordings was sought or given, the company said.
Ms. Williams added that in the course of the investigation only one person — a “senior-level lawyer” at Wal-Mart — listened to parts of the tapes between Mr. Barbaro and the media group.
The focus of any criminal investigation might be on the text messages and the pages transmitted near company headquarters by people who were not Wal-Mart employees; the technician made those interceptions using his own personal radio-frequency equipment.
“He captured all of the text messages that were within a range of his equipment,” Ms. Williams said. “Some of those messages had key words in them that he was watching for. Those were captured and put into a separate file or bucket from the others.” She declined to provide details of the messages or motives for those actions by the technician.
Federal and most state laws forbid the unauthorized interception of messages, said Rodney Smolla, dean of the University of Richmond Law School.
Tuesday, March 06, 2007
Wal-Mart to pay $1b for China retailer
Wal-Mart to pay $1b for China retailer
(Reuters)Updated: 2007-02-27 15:38
HONG KONG/NEW YORK - Wal-Mart Stores Inc., the world's biggest retailer, will pay about US$1 billion to take over a Chinese chain, challenging Carrefour as the largest operator of super-centers in booming China.
Shoppers emerge from a Wal-Mart Supercenter branch in Beijing October 17, 2006. [Reuters] |
Under terms of the deal, Wal-Mart is buying 35 percent of Taiwan-based Bounteous, which operates 101 hypermarkets in 34 Chinese cities under the Trust-Mart brand, and will acquire ownership control of the chain by 2010 if conditions are met.
Terms were not disclosed, but a source familiar with the situation said Wal-Mart will pay a total of US$1 billion for all of Bounteous.
"It's all about tiering and market share -- Wal-Mart has a history of buying local operators, and this could make them No. 1 in China," said an analyst at a European investment bank in Hong Kong.
Wal-Mart already operates 73 stores in China and employs more than 37,000 people there.
France-based Carrefour, the world's No.2 retailer and the largest foreign operator in China, added 20 China stores last year to bring its total in the country to 90 by the year-end.
Other players include Germany's Metro AG, Britain's Tesco Plc. and local operators such as Wumart
Wal-Mart's China expansion follows exits last year from its operations in Germany and South Korea.
The company is also close to striking a joint venture with Bharti Enterprises to enter India, a fragmented retail market where foreign operators are restricted.
In a statement, Wal-Mart Vice Chairman Michael Duke called the China investment "an important step in bringing our additional scale to our China retail business."
Trust-Mart posted 2005 sales of about 13.2 billion yuan (US$1.7 billion) at its Chinese hypermarkets, according to the China Chain Store and Franchise Association, well above Wal-Mart's 9.9 billion yuan in its Chinese stores.
By comparison, Carrefour had 2005 sales of 17.4 billion yuan at its Chinese hypermarkets, while Metro recorded sales of 7.5 billion yuan, the data showed.
International expansion has grown more important for Wal-Mart as US sales growth slows. In its fiscal quarter ending January 31, total sales rose 10.9 percent to US$98.09 billion, but international sales rose 29.6 percent to US$22.73 billion. US sales at stores open at least one year rose 1.6 percent.
Trust-Mart stores employ more than 31,000 people, and will continue to operate under the Trust-Mart name, Wal-Mart said, with both companies continuing to open new stores.
Credit Suisse advised Wal-Mart on the transaction, and UBS advised Bounteous.
Friday, March 02, 2007
Wal-Mart dodging state taxes?
| |
Wal-Mart paid $16.7 million in state and local taxes in Connecticut in fiscal 2006, he added.
Simley defended the company's use of a "captive" real estate investment trust, or REIT - a corporate entity controlled by individuals associated with the company that pays it rent - saying it is permitted under Connecticut law and that state Department of Revenue Services officials are aware of Wal-Mart's practice.
"It is allowed in Connecticut and I'm sure other companies use it," he said. "It's a lawful structure, and ... known to the Department of Revenue in Connecticut and has existed for probably a dozen years."
Department of Revenue Services spokeswoman Sarah E. Kaufman said Tuesday that she was prohibited from providing details about any Connecticut taxpayer and specifically declined to discuss Wal-Mart.
But Kaufman also insisted that the department was "ahead of the curve on the whole captive REITs issue," pointing to the 1997 passage of an amendment to a state law that she said closed the loophole still available in other states.
"This is something we noticed more with the banking industry," she said. "It is not allowed and it's a rare occurrence when someone does try to claim it on their return."
Businesses that had exploited the loophole would now find their deductions disallowed, according to Kaufman, who said the department has the discretion to determine the practice improper.
Kaufman added that the department is not now involved in any litigation or administrative proceeding challenging a corporate taxpayer that may have tried to deduct rent it paid to a captive REIT.
But Attorney General Richard Blumenthal said Tuesday that he was launching an investigation of "whether Wal-Mart and other companies are exploiting a loophole in our law that may need to be closed legislatively, or whether the current law can be enforced against them to collect money that clearly should go to Connecticut taxpayers."
Blumenthal said his probe also would focus on whether existing law "should be enforced more aggressively and vigorously.
"We've done some research and there may be some questions about the current law that need to be clarified," he said.
Simley, the Wal-Mart spokesman, said the company doesn't use its REIT structure only to lower its state tax burden.
"We have so many landholdings that if we create a separate structure to administer them, we can do it far more efficiently," he said, adding that it frees the managers of individual stores to deal with other issues.
"One compelling issue is that the REIT is a discrete - and by that I mean separate - organization that can handle capital requirement issues without being tied to the stores," he continued. "If they need to raise capital or dispose of property it can be done much more effectively through that structure.
"That's not to ignore that fact that in many states there is a significant tax advantage," he added.
The Wall Street Journal did not cite Connecticut as one of the states in which Wal-Mart exploits the tax-law loophole which it said was plugged by the federal government years ago but which many states have been slower to close.
Under the arrangement described by the newspaper, a Wal-Mart subsidiary pays rent to a REIT that is entitled to a tax break if it pays out profits in dividends. The REIT is 99 percent owned by another Wal-Mart subsidiary, which gets the REIT's dividends tax-free. Wal-Mart then gets to deduct the rent from state taxes as a business expense, "even though the money has stayed within the company."
Friday, February 23, 2007
Brooklyn Paper Covers the Albee Rally
Union haul: Labor leader says Wal-Mart has been stopped
It was supposed to be a rally to protest Wal-Mart’s possible first New York City store, but it became a victory party.
Union leaders came to Albee Square last week fearing that the recent sale of the Gallery mall would trigger a new attempt by Wal-Mart to find a location in Brooklyn. But those same leaders and workers ended up cheering as Pat Purcell, an organizer of Wal-Mart Free NYC, told the faithful, “There will be no Wal-Mart in Albee Square!”
The square will soon be bustling with development activity as new owners Acadia Realty Trust and partner Paul Travis begin demolishing the retail building to build an office and residential tower instead.
Wal-Mart has said in the past that it had eyed the site, formerly owned by Thor Equities, which bought it for a mere $25 million in 2001. Some retail experts have said that a large, big-box store like Wal-Mart — if done properly — could fill a gap in the borough’s under-served retail market.
But that wasn’t on the agenda last week at the protest-turned-party. One by one, union leaders and elected officials allied with their cause stepped up to the mic to congratulate themselves and promise to keep fighting the retail giant.
“We are not done fighting against Wal-Mart in the city of New York,” said Bruce Both, the president of Union Local 1500. “We will oppose them at every turn.”
But celebration wasn’t the only item on the agenda. Most speakers complained that the new tower does not, as yet, include any below-market-rate rentals or co-ops. And the recent development boom in Downtown Brooklyn — thanks to a 2004 upzoning passed by the city council — has left a lot of small business owners around the Fulton Mall scrambling to save their businesses.
“Our city was built on the blood and sweat of our people,” said Joy Chatel, a member of Families United for Racial and Economic Equality. “We can’t allow outsiders to come in and take that away from us.”
©2007 The Brooklyn Paper
Thursday, February 15, 2007
“WAL-MART” TAX LOOPHOLE
As the world's biggest retailer, Wal-Mart Stores Inc. pays billions of dollars a year in rent for its stores. Luckily for Wal-Mart, in about 25 states it has been paying most of that rent to itself -- and then deducting that amount from its state taxes.The strategy is complex, but the bottom line is simple: It has saved Wal-Mart from paying several hundred million dollars in taxes, according to court records and a person familiar with the matter. And Wal-Mart is far from alone.

For Immediate Release:
February 2, 2007
UNIONS AND ADVOCATES URGE
LEGISLATURE TO JOIN SPITZER IN CLOSING “WAL-MART” TAX LOOPHOLE
“It’s ridiculous that a company can get away with paying rent to itself and deducting that rent from its taxes,” said Bruce Raynor, General President of UNITE HERE. “But if companies are going to find a way to avoid paying every penny they ought to pay, you can be sure that Wal-Mart will be one of them.”
According to a front-page Wall Street Journal article on Thursday, Wal-Mart has avoided
paying several hundred million dollars in taxes by using a complex scheme. The loophole was plugged by the Federal government many years ago, but many states have not followed suit. New York was one of those states, until now. Governor Eliot Spitzer’s Executive Budget would close the loophole, saving the state $83 million a year. “Hard-working New Yorkers pay their fair share of taxes,” said Paul Blank of Wake Up Wal-Mart. “It’s time that companies like Wal-Mart do the same.”
According to Thursday’s Wall Street Journal article, tax-saving schemes like these have led to an increased percentage of state taxes being paid by individuals. As companies find new ways to lower the amount of taxes they pay, states increasingly rely on individuals and working families to make up the difference. “We’re glad that Governor Spitzer has decided to stand up to businesses that manipulate the tax system to shirk their responsibility to pay what they ought to pay in taxes,” said
Bruce Both, President of United Food and Commercial Workers Local 1500. “We hope the Legislature will join him in standing up for individuals and small businesses, who can’t take advantage of these ridiculous gimmicks.”
Contacts:
Michael Rabinowitz, UNITE HERE, 646.342.3469
Patrick Purcell, UFCW Local 1500, 973.583.9651
Monday, February 12, 2007
Largest Lawsuit in History going forward
Court says Wal-Mart must face bias trial February 6th, 2007
The suit claims that as many as 1.5 million current and former female employees earned less than men and were bypassed for promotions. The lawsuit exposes the Bentonville, Ark.-based retailing powerhouse to the possibility of billions of dollars in damages. Wal-Mart claimed that the conventional rules of class actions should not apply in the case because its 3,400 stores, including Sam's Club warehouse outlets, operate like independent businesses, and that the company did not have a policy of discriminating against women.
But the court, in a 2-1 decision, disagreed. "Plaintiff's expert opinions, factual evidence, statistical evidence and anecdotal evidence present significant proof of a corporate policy of discrimination and support plaintiff's contention that female employees nationwide were subjected to a common pattern and practice of discrimination," the court wrote. U.S. District Judge Martin Jenkins, the San Francisco trial court judge who said the case could proceed, had ruled that lawyers for the women had enough anecdotal evidence to warrant a class-action trial.
Wal-Mart took the case to the San Francisco-based appeals court. Jenkins said if companywide gender discrimination is proven at trial, Wal-Mart could be forced to pay billions of dollars to women who earned less than their male counterparts, with no opportunity to dispute their individual circumstances. Jenkins said it was "impractical on its face" to have individual hearings for each plaintiff and had planned to use a statistical formula to compensate the women. Wal-Mart, in seeking dismissal of the case, called that an unprecedented denial of its rights. Wal-Mart said women who allege they were discriminated against can file lawsuits against individual stores. The women's lawyers said the idea was ridiculous, and would clog the federal judiciary. "Although size of this class action is large, mere size does not render a case unmanageable," Judge Harry Pregerson wrote for the majority, which upheld Jenkins' decision in its entirety.
Brad Seligman, one of the attorneys who represented the women suing Wal-Mart, said he suspected Wal-Mart would ask the appeals court to rehear the case with a panel of 15 judges. But he said the decision would hurt the company's reputation. "No amount of PR by Wal-Mart is going to allow it to deal with its legacy of discrimination," Seligman said. Wal-Mart spokeswoman Mona Williams said the company was not immediately prepared to comment.
Friday, February 09, 2007
Wal-Mart Kept out of Brooklyn
Albee Square tenant speaking to NY1 on why tearing down the Gallery is not right for Brooklyn.
New York City Council Member Letitia James speaking on Wal-Marts mistreatment of women, and workers in general.
WMFNYC coordinator Ed Lynch speaking to the community on the effects of Wal-Mart.
Thursday, February 08, 2007
Developer: "There will be NO WAL-MART IN BROOKLYN..."
States Largest Grocery Workers Union, Community Groups, Elected Officials and Faith Leaders Reach Historic Agreement: No Wal-mart in BrooklynOn Thursday, February 8th at 1:00 P.M. United Food and Commercial Workers Union Local 1500 will join with community organizations, members of the New York City Council, the Working Families Party, State Senator Eric Adams, Faith Based Leaders, Brooklyn Borough President Marty Markowitz and other Unions to announce an historic agreement with the developers of the proposed Albee Square Mall that will exclude Wal-mart from the project.
Representatives of the coalition and Albee Development LLC reached an agreement late Wednesday evening. “On the issue of Wal-mart, the developer and their representatives acted in a professional and responsible manner hearing our concerns about the devastating effect a Wal-mart would have in Brooklyn,” stated UFCW Local 1500 President Bruce W. Both. “They have made it clear to us that there are no plans now, nor will their be in the future, to bring Wal-mart to the Albee Square Development,” concluded Both.
Despite the agreement, the protest against Wal-mart, not the development, will take place. Protesters scheduled to participate in addition to the U.F.C.W. are the Change To Win Union, Jobs With Justice, F.U.R.E.E (Families United for Racial and Economic Equality) the Working Families Party, the New York Central Labor Council, A.C.O.R.N., New York City Council Members Leticia James, Erik Dilan and David Yassky, State Senator Eric Adams, the Teachers Union, the Laborers Union and the RWDSU.
While unable to attend the rally due to a previous commitment, Brooklyn Borough President Marty Markowitz has been supportive throughout the process and instrumental in reaching an agreement.
While expressing praise for the agreement, Director of Special Projects for UFCW Local 1500 Patrick Purcell Jr. said there is still work to be done before Albee Square’s final plans are reached. “The developers representatives, keeping with their cooperative approach, have agreed to continue to meet with the coalition to discuss other issues such as affordable housing,” Purcell stated “All parties understand the win-win situation that come from accountable and responsible development and open communication between developers and the communities. The people in the community want and deserve a voice. We look forward to a continued open and positive dialogue,” Purcell concluded.












