Pep Rally, Theatrical Spectacle and Strategic Board Meeting All in One

An air of carnival invades Benton County, Arkansas, this week as shareholders and employees from around the world flock to Wal-Mart’s world headquarters in Bentonville. The company’s annual shareholder meeting will take place this Friday: more a highly-orchestrated theatrical event than an open forum for discussion, the meeting is nonetheless a chance to examine where the company is and where it’s headed. Several stories already this week have begun to examine what’s in store for the annual meeting.

We here at Wal-Mart Watch are also looking forward to the meeting - and not just because Kool and the Gang are slated to perform. Check here Friday morning for live blogging of the event, starting at 7 AM central time (8 AM eastern).

Wal-Mart meeting wows workers [Northwest Arkansas News]

Let the show begin.

The annual pep rally, entertainment extravaganza and business gathering — otherwise known as the Wal-Mart Stores Inc. shareholders meeting week — is under way…

“Wal-Mart’s had, in some respects, a bad year, and allowing shareholders to ask questions is a good thing,” said Patricia Edwards, a fund manager with Wentworth, Hauser & Violich, Investment Counselors, in Seattle.

Retailer’s Riddle: Grow or Invest? [Wall Street Journal]

Amid the festivities at Wal-Mart Stores Inc.’s annual shareholders meeting on Friday, analysts and investors plan to press for answers on a seminal concern: How soon will the retailer significantly curtail its U.S. growth to focus more resources on its faltering base of existing stores?

It is a question that Wal-Mart has faced repeatedly as a maturing retailer. But pressure on Wal-Mart to act dramatically on the issue is intensifying.

Fashion, Image Issues Looming Over Wal-Mart As Shareholders Gather [Women’s Wear Daily]

The issues also include:
--Turnaround plans for Wal-Mart’s flagship U.S. division, which accounts for 65 percent of total revenue and, twice in the last 12 months, has fallen below Wall Street expectations on same-store sales.

-- Accusations by fired marketing officer Julie Roehm that Wal-Mart executives, including president and chief executive officer H. Lee Scott, violated company ethics policies. Wal-Mart had accused Roehm of accepting gifts from suppliers and having an affair with a subordinate. Roehm, who is suing for breach of contract, alleged in court papers that the executives received gifts and discounts from companies doing business with Wal-Mart.

-- Speculation that Wal-Mart has explored the sale or spin-off of the $41 billion Sam’s Club division.

-- Fallout from an alleged clandestine investigation of some shareholder and activist groups by an internal Wal-Mart team, and electronic surveillance of a New York Times reporter.

Wal-Mart Shareholders to Pack Ark. Arena [Associated Press via New York Times]

This year’s proposals include calls for Wal-Mart to report on the gap in pay and benefits between its top executives and lowest paid workers, on the percentage of stock awards to employees based on gender and race, on the need for universal health care plans and on the grounds for its charitable giving...At the shareholder meeting and at an analyst conference immediately afterward, analysts will be listening for any news on Wal-Mart’s growth strategies for its core U.S. namesake stores, whose sales dwarf its faster-growing international business and its Sam’s Club membership warehouse chain.

Wal-Mart: Back To Basics [(Ark.) Morning News]
An extensive look at what’s been plaguing Wal-Mart this past year, and analysts’ input on what the company should do about it.

Wal-Mart will hold its 2007 shareholders meeting Friday at the Bud Walton Arena in Fayetteville, at which it will elect 15 directors, vote on 11 shareholders proposals and transact other business.

Most eyes and ears will likely be fixed on President and CEO Lee Scott when he hops to the stage to give his annual state of Wal-Mart address and talk about what’s next.

Wal-Mart Shareholders Meeting Events Schedule [(Ark.) Morning News]
And a schedule of events, leading up to and including the shareholders meeting itself.

Tuesday
7 p.m.—Concert at Bud Walton Arena featuring Fall Out Boy and Grammy-nominated singer/dancer Chris Brown. Open to the public. Doors open at 6:15 p.m. for Wal-Mart employees; 6:30 p.m. for the public…

Posted by Alex Goldschmidt on Wednesday, May 30, 2007