WSJ: Wal-Mart Execs Amuse Themselves Playing Favorites

Actually VPI does not stand for “value producing item” as stated in the article. it stands for “volume producing item”.

That makes more sense, fm.

The outdoorsy Mr. Walton later chose a minnow bucket as a VPI. Eventual CEO David Glass instructed several store managers each to fill the buckets with ice to cool samples of his own VPI—Seneca apple juice—which were then handed out to shoppers at store entrances. “I particularly did it in stores I knew he was going to visit,” Mr. Glass said in Mr. Walton’s autobiography. “It drove him crazy, and he got off that minnow bucket pretty quick.”

The more I learn about David Glass, the more I like the guy.

And apparently Tom Couglin is talking also:

“...says Mr. Coughlin, reached at home.”

Come on, Lou Dobbs, set up the interview with Glass and Coughlin!

KenV

David Glass is one of the most underrated CEO’s in our history. He ran Wal-Mart while Mr. Sam was alive. He put Wal-Mart on its’ current course. He approved of and supported Lee Scott’s appointment as CEO. He is still with Wal-Mart as a board member and advisor.

Given your disdain for Lee Scott, it’s odd that you would praise the man who had him appointed and who took Wal-Mart global. Glass is responsible for Wal-Mart’s current policies of excellent logistics, super efficient information systems and global sourcing. He is a brilliant guy but any comments he has made regarding Wal-Mart’s current direction I can only attribute to sour grapes. He ran Wal-Mart exactly as Lee Scott does, except that he ran it during a period where Wal-Mart was able to keep a low profile.

You’re repeating yourself, Ellis. As I pointed out to you the last time you used this “most underrated CEO’s in our history” line, David Glass has been pushed aside by Bentonville. 

If you’ll recall I quoted him in response to a question about Wal-Mart’s current difficulties and he said:

They don’t listen to me anymore.”

Any of this ringing a bell?

KenV

It gets to be very frustrating when liberals like yourself can look at financial statements filed with the IRS, SEC, Fortune magazine, The Wall Street Journal, etc. and continue to live in a state of denial. Let me spell it out for you.

If you merged Costco, Target and Kroger into one company, Wal-Mart would still be larger in sales, profits, assets, stockholders equity, customer count and market cap. The numbers back me up on this. Why don’t you address these FACTUAL numbers, numbers that seem to support the idea that Wal-Mart is far more popular than any other retailer out there. After all, 130 + million consumers per week spent about $340 BILLION at Wal-Mart in 2006.

Facts are facts. Why don’t you address these numbers or the fact that Wal-Mart’s overall sales increased more than 9% in the most recent 5-week period (compared to a year ago).

The numbers don’t lie. Why can’t you admit that Wal-Mart is by far the most popular retailer in America? If I like Store A but shop at Store B, Store B is more popular. Period.

You really are clueless, my friend.

Ellis the fraud-

Desperation is why people still shop at WalMart. You have said it yourself about WalMart building in and being geared to low income areas. This speaks to the true state of the U.S. economy and this item on the growth of poverty-

Report: In U.S., record numbers are plunged into poverty
Posted 2/25/2007 2:43 AM ET

Excerpts include-

“The McClatchy analysis found that the number of severely poor Americans grew by 26% from 2000 to 2005,” the U.S. newspaper chain reported.

“That’s 56% faster than the overall poverty population grew in the same period,” it noted.

The surge in poverty comes alongside an unusual economic expansion.

“Worker productivity has increased dramatically since the brief recession of 2001, but wages and job growth have lagged behind. At the same time, the share of national income going to corporate profits has dwarfed the amount going to wages and salaries,” the study found.

“We’re not seeing as much moderate poverty as a proportion of the population. What we’re seeing is a dramatic growth of severe poverty.”

http://www.usatoday.com/news/nation/2007-02-25-us-poverty_x.htm?csp=24

Let’s quote Ellis-

“The numbers don’t lie. Why can’t you admit that Wal-Mart is by far the most popular retailer in America? If I like Store A but shop at Store B, Store B is more popular. Period.”

“You really are clueless, my friend.”

WalMart- Where impoverished America still shops as a last resort and where WalMart dumps impoverished ‘associates’ onto state health care programs ( another “volume producing item") for the U.S. taxpayers to pick up the bill. Ellis the WalMart worshipping fraud and propagandist won’t mind you ‘the suckers’ paying for it.

Why can’t you admit that Wal-Mart is by far the most popular retailer in America?

I have no problem admitting that.  Now why can’t you admit that they are not as popular this year as they were the last, or the year before that, etc., etc.?

the fact that Wal-Mart’s overall sales increased more than 9% in the most recent 5-week period

I don’t know where you come up with these numbers (the ones that don’t lie)? 2006 went along with one month sucking more than the last and then “Bingo” at year’s end everything’s rosey!  Smells to me like there’s more than moonshine cooking in the Arkansas mountains.

I don’t see why this is anti-walmart.  Am I missing something?  This seems like a fun way to make employees of a retailer into salespeople.  I like the idea.  Just my 2 cents.

Ken V,

Why can’t you guys keep you stories consistant?  SanDiegView says that poverty is on the rise and poor people are forced to shop at Wal-Mart, out of desperation and you say that shopping at Wal-Mart is on the decline, which is it?

SanDiegView,

First you say, “This speaks to the true state of the U.S. economy and this item on the growth of poverty-”, indicating that the economy is in poor shape, and then you say” The surge in poverty comes alongside an unusual economic expansion.”, so, is it that the economy is going ‘bad’ and creating more poverty or that the economy is ‘good’ and some people just aren’t taking advantage of it!  How is it, that some people are doing ‘good’ right now and some aren’t?  Could it be, that some people pay attention to their financial situation and some don’t?  Some people ‘Save’, while others ‘Spend’, and that is why we have a negative savings rate in the U.S.?  Like I said before, you must not know any ‘poor’ people personally and therefore are able to SEE their spending habits!!!

Bob and Ellis - you are dealing with people (ie. SDV and Ken V.) that live in a world of perception, not reality.  They are obviously liberal in their thoughts and PERCEPTIONS, and they choose not to deal with facts unless it backs up what they have to say. 

aND WHAT’S THIS....???  WMW has a spell-check??  Impressive.

To begin with SDV and I make no attempt to “dove-tail” our posts.

I’m just going by Wal-Mart’s own numbers. They lost 2% to 8% of their customers due to “bad press”.

Clear?

Ken

How did Wal-Mart lose from 2-8% of their customers and still increase sales from $315 billion to $340 billion last year?

As per usual, you liberals post drivel. I post facts that can be verified. Logic, reason, data, facts. These things do not appeal to liberals because they cannot be twisted to support your “arguments”. 2 + 2= 4, unless you’re a liberal. Then you say that numbers can be twisted and statistics are useless and that facts are unfair and logic is unkind. 2 + 2 = 4 only when it supports your view. When it doesn’t, you claim that there is no way to prove 2 + 2.

Liberals continue to baffle me with their stupidity.

Ellis,

To a liberal, 2+2= “Tax Cuts For The Rich”, almost everything to a liberal = “Tax Cuts For The Rich”

To SDV, 2+2= “Wal-Mart Dumps Employees On Government Healthcare”

To SDV, 2+2= “Wal-Mart Dumps Employees On Government Healthcare”
Bob in
Sunday, March 11 at 12:06 AM

“I, and I believe Ellis as well, are not Wal-Mart Promoters.”
Bob in
Sunday, February 25 at 11:55 PM

In All States That Release Data on Companies Whose Employees Receive State-Funded Health Care, Wal-Mart Tops the List. In 21 states, Wal-Mart leads the list of companies with the most employees and dependents enrolled in state-funded health care programs.

Other examples include-

California
2005 - Total # of Wal-Mart Employees in State: 73,787
2005 - Estimated # of Wal-Mart Workers on Medicaid: 9,745
2005 - Estimated # of Wal-Mart Dependents on State Health Programs: 5,948
2005 - 2005 - Estimated Total Cost; Federal & State:$39,141,590

Colorado
2005 - Total # of Wal-Mart Employees in State: 25,382
2005 - Estimated # of Wal-Mart Workers on Medicaid: 3,352
2005 - Estimated # of Wal-Mart Dependents on State Health Programs: 2,046
2005 - 2005 - Estimated Total Cost; Federal & State:$30,713,003

Florida
2005 - Total # of Wal-Mart Employees in State: 95,853
2005 - Estimated # of Wal-Mart Workers on Medicaid: 12,659
2005 - Estimated # of Wal-Mart Dependents on State Health Programs: 7,726
2005 - 2005 - Estimated Total Cost; Federal & State:$80,523,268

Indiana
2005 - Total # of Wal-Mart Employees in State: 38,647
2005 - Estimated # of Wal-Mart Workers on Medicaid: 5,104
2005 - Estimated # of Wal-Mart Dependents on State Health Programs: 3,115
2005 - 2005 - Estimated Total Cost; Federal & State:$47,801,443

Michigan
2005 - Total # of Wal-Mart Employees in State: 30,181
2005 - Estimated # of Wal-Mart Workers on Medicaid: 3,986
2005 - Estimated # of Wal-Mart Dependents on State Health Programs: 2,433
2005 - 2005 - Estimated Total Cost; Federal & State:$23,235,602

North Carolina
2005 - Total # of Wal-Mart Employees in State: 49,956
2005 - Estimated # of Wal-Mart Workers on Medicaid: 6,598
2005 - Estimated # of Wal-Mart Dependents on State Health Programs: 4,027
2005 - 2005 - Estimated Total Cost; Federal & State:$54,409,985

Ohio
2005 - Total # of Wal-Mart Employees in State: 50,068
2005 - Estimated # of Wal-Mart Workers on Medicaid: 6,612
2005 - Estimated # of Wal-Mart Dependents on State Health Programs: 4,036
2005 - 2005 - Estimated Total Cost; Federal & State:$70,882,417

Oklahoma
2005 - Total # of Wal-Mart Employees in State: 31,611
2005 - Estimated # of Wal-Mart Workers on Medicaid: 4,175
2005 - Estimated # of Wal-Mart Dependents on State Health Programs: 2,548
2005 - 2005 - Estimated Total Cost; Federal & State:$30,182,284

Texas
2005 - Total # of Wal-Mart Employees in State: 151,994
2005 - Estimated # of Wal-Mart Workers on Medicaid: 20,073
2005 - Estimated # of Wal-Mart Dependents on State Health Programs: 4,947
2005 - 2005 - Estimated Total Cost; Federal & State:$134,161,466

Wal-Mart increased advertising more than health care in 1995, 1996, 1997-1999, 2003 and 2004, according to its annual reports and 5500 filings.

“There are government assistance programs out there that are so lucrative it’s hard to be competitive, and it’s expensive to be competitive,”
-- A galling statement from Wal-Mart CEO Lee Scott
[St. Louis Post Dispatch, 04/06/05]

Bob- when you worship WalMart with your head up Ellis’s
ass remember that the real outside world of WalMart stinks just as bad.

WalMart- We ‘dump’ our employees onto the states for health care and for the taxpayer ‘suckers’ to pick up the tab. Bob will deny it while Ellis will approve for his fraudulent claims about WalMart capitalism. WalMart- living off government subsidies and making Ayn Rand proud.

How did Wal-Mart lose from 2-8% of their customers and still increase sales from $315 billion to $340 billion last year?

That’s a good question, Ellis.  Two possibilities immediately come to mind:

• The results of Wal-Mart’s “bad press” study are wrong.

• The sales/profit numbers for last year are wrong.

Either way, there appears to be some number cookin’ going on in Bentonville.

Ken

Until we see such evidence to the contrary, I would suggest that you refrain from making any statements regarding fraudulent sales figures as reported by Wal-Mart. Apparently, the SEC and the IRS, as well as state and local tax authorities, are satisfied with Wal-Mart’s reported numbers. How many companies actually DO fudge their numbers? Quite a few-and Wal-Mart is not one of them. Did you know that GE earned close to $2 billion from its’ pension fund last year, $2 billion that gets reported as profit? Did you know that GM actually lost close to $24 billion in 2005 but a $10 + billion profit from pensions cut that to about $13 billion in reported losses. Did you know that Coca-Cola, GE and other companies keep liabilities and risky partnerships “off the books” as Enron did? This is perfectly legal, of course, but no evidence has ever surfaced that Wal-Mart has misreported. They pay sales tax in every city and state where they operate and those numbers are looked at closely. With all the attention Wal-Mart receives, I don’t think they would ever consider fudging their numbers.

Why don’t you just admit that Wal-Mart’s sales went from $315 billion to $340 billion and profits from $11.6 billion to about $12 billion. If the IRS, SEC, internal & outside auditors and investment firms are satisfied, I am. In the wake of Sarbanes-Oxley, CEO’s and Board members have had to put themselves on the line and personally certify, on pain of arrest, conviction and incarceration, that the financial reports they signed off on were correct. This gives anyone motivation enough to report honestly.

Wal-Mart has never been implicated in any misdeed in the reporting area and is renowned for its high standards-even by rivals & suppliers. It always pays its bills on time, usually ahead of time, it doesn’t charge kickbacks for shelf space and it passes the savings it gets on to consumers. It’s vendors have, on average, tripled their profit margins over the last 15 years.

So when you make statements regarding honesty, please provide evidence to support your agenda.

Ellis,

Don’t you know yet, that to Ken V. and SanDiegoView, FACTS are irrelevant, PERCEPTION is what is important to them, FACTS be damned!!

This gives anyone motivation enough to report honestly.

You are truly the Mayor of Lala Land but for the sake of argument, let’s accept the validity of your beloved numbers.  What they tell me is that Wal-Mart had to strip mine an additional $25 billion in sales to refine (and send to Bentonville) a measly $400 million in “pure” profit.

It must gall the Bentonvillians to see Exxon with fractionally higher sales reaping three times the profit.

Until we see such evidence to the contrary, I would suggest that you refrain from making any statements regarding fraudulent sales figures as reported by Wal-Mart. Apparently, the SEC and the IRS, as well as state and local tax authorities, are satisfied with Wal-Mart’s reported numbers.

Are you implying that Wal-Mart has never had to go back and ammend reports filed with “the SEC and the IRS, as well as state and local tax authorities”?

You’re talking fraud. I’m talking about your contention that “numbers don’t lie”.

Ken

Your beloved Costco has lower profit margins than Wal-Mart. FACT. Target’s profits in 2005 were down more than 24%. FACT. Retail/grocery average profit margin is between 2%-6%. FACT. Exxon Mobil is in a completely different industry. FACT. Wait, what happened to “price gouging”? How is it that Exxon only earns 10 cents on every dollar of revenue? How is it that Exxon’s profit margin is far lower than the banking & financial services sector?

Actually, Wal-Mart DOES use a variation of the statement you made regarding sales & profit. The rule of thumb at corporate HQ is to measure expenditures by sales. Wal-Mart assumes that, for every $1 it spends, it needs something like $36 in sales to pay for it. So when they spend $100 on a new desk, they have to generate $3,600 in sales to cover the cost and break even.

Just a little food for thought.

Wal-Mart assumes that, for every $1 it spends, it needs something like $36 in sales to pay for it.

Imagine how much Wal-Mart will have to sell just to break even on the money they’re wasting trying to combat the negative effects of their own blunders.

Now that’s “food for thought”!

food for thought huh, these people are taking you for a ride climb on the wal mart express

The most important numbers to look for any retailer are same store sales and profits.  The reality is much of Wal-Mart sales and profit growth comes by way of opening new stores, which they did at a record pace last year.  Look at the same store numbers and see how they compare to total figures and I think you will see that same store numbers are not keeping pace, in fact sales growth is slowing on this level.  When new stores are being built in areas, primarily urban, where stores have never been before there is an automatic jump in sales and profit numbers, but without looking below the surface you are not getting a true picture of the company.