Wal-Mart PR: All Mixed Up, Don’t Know What To Do

From Dow Jones Newswires:

Wal-Mart Stores Inc.’s growing public-relations machine has been sending a few mixed signals lately.

Earlier this month, Arizona’s attorney general sued Wal-Mart for consumer fraud, accusing the world’s largest retailer of consistently overcharging customers and failing to post prices on its shelves. Immediately after the lawsuit was filed July 6, Wal-Mart spokesman John Simley sounded a conciliatory note, saying the company was “committed to working with the attorney general to resolve this issue.”

Last week, however, a Wal-Mart-funded group called “Working Families for Wal-Mart” took a distinctly different tone on its Web site, paidcritics.com. In a blog entry, the group called Arizona Attorney General Terry Goddard a “career politician and twice-failed candidate for governor,” and quoted an editorial in a Phoenix-area newspaper that warned Goddard “better have his facts straight.”

Looking to defend itself against union-backed critics that have attacked its labor practices, Wal-Mart is beefing up its public-relations efforts. The Bentonville, Ark., retailer isn’t just hiring more corporate spokespeople. In addition to building a lobbying team in Washington, Wal-Mart over the past year has assembled a “war room” staffed with political campaign veterans. This week, the company hired a former nun who has helped mediate conflicts in the Balkans, Afghanistan and Iraq.

Wal-Mart has strong incentives to boost its media savvy. A 2004 study for Wal-Mart by McKinsey & Co. found that as much as 8% of Wal-Mart customers no longer shopped there because of “negative press they have heard.” But for all of its growing sophistication, Wal-Mart has made a few awkward stumbles in its recent communications, and some feel they’ve been getting conflicting messages from the different arms of Wal-Mart’s growing apparatus.

“I did find it surprising,” Arizona Attorney General Goddard told Dow Jones Newswires, having learned of the blog posting last week. Occasionally in the past, Goddard said he has been hit with candid barbs from criminal defendants amid the genteel protests of their attorneys. But Goddard said he’s never seen such a mixed public message from a corporate defendant.

It’s not the only recent example of Wal-Mart getting its signals crossed. Last October, President and Chief Executive Lee Scott said in a speech to Wal-Mart executives and directors that Congress should “take a look at” increasing the federal minimum wage. Since then Wal-Mart, which employs more than 1.3 million people in the U.S., hasn’t lobbied for an increase. When asked why late last month, Lee Culpepper, Wal-Mart’s chief lobbyist in Washington, was quoted as saying that Scott was actually neutral on the minimum-wage issue.

“He said Congress should take a look at it,” Culpepper told the Washington-based publication Roll Call. “If reporters want to report differently from that, I can’t speak to that.”

Shortly thereafter, however, Wal-Mart issued a written statement by Scott that the federal minimum wage of $5.15 an hour was indeed “out of date with the times.”

Wal-Mart’s multi-pronged strategy for public relations increasingly is beginning to resemble past efforts by other notably embattled corporations, said Adam Hanft, chief executive of Hanft Unlimited, a New York branding and marketing agency. Before many big oil companies “flipped and embraced that global warming was a threat,” they had funded plenty of third-party “research” to the contrary. In addition to formidable lobbying efforts in Washington, Big Tobacco funded “free speech” organizations as it fought legal curbs on its advertising.

“All of these companies have tried to insulate themselves from criticism by creating third-party entities that have the appearance of independence,” Hanft said. “But they’re so transparent they come off as desperate. Anything that a proxy group is saying, you should be saying yourself.”

Nu Wexler, a spokesman for Wal-Mart Watch - a gadfly group whose backers include the Sierra Club and the Service Employees International Union - said that while the group “Working Families for Wal-Mart” calls itself a “grassroots” organization, it’s operated by executives from Edelman, a global public-relations firm hired by Wal-Mart last year.

“They’re just outsourcing their mudslinging,” Wexler said. Kevin Sheridan, a spokesman for Working Families For Wal-Mart, deferred to the company for a response.

Simley, the Wal-Mart spokesman, said that “we agree with an awful lot of what ‘Working Families’ does and what they stand for, and we support it. But it’s not a mouthpiece for Wal-Mart.”

He added that the company has “no position” on possible motivations behind the Arizona Attorney General’s lawsuit. Likewise, Wal-Mart has no position on the group’s recent blog entry that questioned the Attorney General’s motivations, he said.

“We’ve had some discussion on it, but I can’t say that anybody has any response at all,” Simley said. “It is what it is.”

Posted by Laura Jack on Wednesday, July 19, 2006

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COMMENTS

Did anyone in the States hear about this?

“Wal-mart workers enlisted to help search store after bomb threat”
“Three bomb threats in one week” (Saint-Jean-sur-Richelieu)

http://www.cbc.ca/canada/ottawa/story/2006/07/14/walmart-threat.html

Alex in Ontario, Canada
Wednesday, July 19 at 05:53 PM

I only knew of it when I found it on Yahoo! News search.

WM Watcher in USA
Wednesday, July 19 at 06:17 PM

I had heard about the bomb problem, but I didn’t think it was very important in the grand scheme of things. From what I know, I’d say the situation was poorly handled by both the store’s management and the police.

Someone in USA
Wednesday, July 19 at 07:40 PM

RE: All Mixed Up;
What is Wal-Mart Watch if not a third party entity to represent the failing union organizations in this country?
Is this site not “Mud Slinging” in order to try and deflect the positive impact Wal-Mart has in this country and around the world? Talk about transparency.....you folks are pretty obvious yourselves!

Pete in USA
Thursday, July 20 at 11:11 AM

Now now Pete......you should have a platform on this site?
If you want to express yourself, go to paidcritic to speak.
You don’t want these failing union organizations to be responsible for “transparency” and providing you with a voice!!!!!  That would blow your whole argument.

JM in USA
Thursday, July 20 at 04:42 PM

Pete, you’re right, everyone owes Wal-Mart an apology.  Wal-Mart has nothing but positive impact on every community that it moves into.  It is like the Salvation Army as it serves the needs of the poor working families of Joe and Jane Sixpack with the always low prices(TM) and decent, well-paid jobs that it provides.  I would continue, but I’m getting teary-eyed and choked up thinking about it.

Generic Wal-Mart Wageslave in Michigan
Thursday, July 20 at 09:16 PM

I miss Sam Walton. Alot of us do. This bad public opionion would not be this bad if he where still here. It is a shame that none of his chidren got some of what he had. He believed in us and in the customers. He knew That without that combination Wal-Mart would fall to the ground. We Miss his beliefs and his trust that things would be done the right way. At Wal-Mart most who work there now Do Not Care and that is being felt by the customers. That is why unions are closer than they ever were before. Associates are un-happy. If Wal-Mart excutives would take time to go to the stores they might find out things that need to be fixed before the company crumbles to the ground because of them.

KDSmith in USA
Saturday, July 22 at 07:55 AM

Someone I know manages a retail chain store. They said that
retail executives do not drop in without first informing their district supervisors of the visit. Then the store management has to pull out all the stops and do what it takes to bring conditions up for that day. In other words they put the blinders on.
I just went into another new Real Canadian Superstore. The place was packed with ethnic shoppers. This place is so large and to be honest, so drab. Almost depressing.  It is the same format as Walmart.  Cheap, cheap, cheap.  This place has organic food section, Presidents Choice banking and insurance, medical and dentist office’s, Goodlife gym, eyeware, portrait studio, dry cleaner, wine shop, community room where you can hold cooking classes or birthday parties or meetings, Joe Fresh clothing line by the designer who started the Monico Club line, all the regular general merchandise and grocery, meals to go and so much more.

Don’t want to shop at such a monster, whether its Real Canadian Superstore or Walmart.

Alex in Ontario, Canada
Saturday, July 22 at 08:41 AM

Oh, oh, we can’t have “ethnic” shoppers hanging around, that means that it’s a bad store.  Just out of curiosity, which human beings aren’t ethnic?  Everyone belongs to some ethnic group or ethnic groups, so I’m confused.  Seriously, the anti-Wal-Mart people don’t need ignorant comments like that being made.  I guess that racism is alive and well even in Canada, that bastion of tolerance.

Generic Wal-Mart Wageslave in Michigan
Saturday, July 22 at 08:57 AM

KDSmith-

“That is why unions are closer than they ever were before.”

That’s hilarious! I honestly laughed out loud! The world will come to an end before a U.S. store effectively unionizes.

Someone in USA
Saturday, July 22 at 10:36 AM

Sorry Generic
Did not mean to offend.  The term “ethnic market” is a common term and I should have used that instead of shopper.  I was talking to one of the clerks who used that term (he is South Asian decent). The meaning of it is a group of consumers that share a common cultural background including food selection.
Checking google you will see conventions such as this one in California.
http://www.worldethnicmarket.com/
As far as racism in Canada, yes there is some, but we have some of the most diverse mixes of people anywhere in the world living side by side. One of your radio personalities from ESPN was in Toronto during the World Cup (soccer) and could not believe that a country that did not have a team in the games could have so much interest. There were flags from all over the world hanging off cars everywhere. You would go into a bar and not be able to watch anything but soccer.
My critisism of the store was not ment to be of the people.
Sorry again.

Alex in Ontario, Canada
Saturday, July 22 at 06:44 PM

I like it when Someone becomes arrogant and overconfident.
That’s the first step to something falling.

JM in USA
Saturday, July 22 at 08:31 PM

Okay, Alex, I apologize because I shouldn’t have assumed that that’s what you meant, I just wasn’t familiar with the terminology.  Yeah, I also know that unfortunately racism is alive and well all over the world - even in Canada (I like a lot of things about Canada by the way and have even thought about moving to Ontario in the past).

Someone, what does that tell you about the company that you keep defending?  You keep insisting that Wal-Mart doesn’t do anything wrong and that they don’t union bust, but how else would you explain your comment?  With Wal-Mart being America’s number one employer, wouldn’t there be at least ONE store willing to unionize, especially with groups like the IWW, or the “traditional” unions?  Isn’t it our legal right in the United States to unionize, Someone?  Well, if this is the case, than how are you SO SURE that it will never happen?  Were you just caught admitting that Wal-Mart union busts inadvertantly?  Well, it was either that or your arrogant view of the average Wal-Mart employee (as well as average human being) as just being too stupid, incapable, and ignorant to manage it (what does that say about you, then, by the way?).  The only other logical conclusion would be that you know that they would simply shut the store down under some ludicrous pretense ("It suddenly doesn’t make money") like before (which would be union busting, wouldn’t it?).  It must really be aggravating constantly having to worry that your company will be “ruined” by unionization because it sucks so bad.

JM, absolutely correct.

Generic Wal-Mart Wageslave in Michigan
Sunday, July 23 at 09:47 AM

Generic-

“Someone, what does that tell you about the company that you keep defending?  You keep insisting that Wal-Mart doesn’t do anything wrong and that they don’t union bust, but how else would you explain your comment?”

Have I ever insisted that Wal-Mart doesn’t union bust? I’m quite certain they do. However, I’m also sure that the steps they take to do so have enough of a pretense of legality so as to avoid any trouble with the law. Remember, I’m a supervisor. They train us how to deal with talk of labor unions...I mean...how to maintain the company’s pro-associate stance.

“With Wal-Mart being America’s number one employer, wouldn’t there be at least ONE store willing to unionize, especially with groups like the IWW, or the “traditional” unions?”

It’s possible, but not likely.

“Isn’t it our legal right in the United States to unionize, Someone?”

Unfortunately. Rather, it’s unfortunate that the government allows labor unions to destroy the businesses they deal with.

“Were you just caught admitting that Wal-Mart union busts inadvertantly?”

Nothing inadvertant about it.

“Well, it was either that or your arrogant view of the average Wal-Mart employee (as well as average human being) as just being too stupid, incapable, and ignorant to manage it (what does that say about you, then, by the way?).”

I would say that the average associate has little to no comprehension of labor laws, is too afraid to make a ruckus about it, or simply doesn’t care for one reason or another.

“The only other logical conclusion would be that you know that they would simply shut the store down under some ludicrous pretense ("It suddenly doesn’t make money") like before (which would be union busting, wouldn’t it?).”

Give me what you think sounds like a fair union-negotiated hourly compensation package (wage + benefits per hour) and I will compute the effect on an average store’s profitability for you.

Someone in USA
Sunday, July 23 at 01:24 PM

“...how to maintain the companie’s pro-associate stance”

That is so funny Someone!!!
Your stupid enough to really believe your WM companies BS.

I’m going to print this page so I can show people.
Thanks for the laugh.

JM in USA
Sunday, July 23 at 04:33 PM

Why not do this Someone:

Compute with your little computer how the profitability of the average store (on the backs of the average “associate") has made all the Waltons on the top ten list of the worlds richest people, and Lee Scott enjoying 10’s of millions of dollars every year.

You need to get a brain.
Your a stupidvisor, not a supervisor.

JM in USA
Sunday, July 23 at 04:40 PM

Meant to write company’s, not companie’s.

JM in USA
Sunday, July 23 at 04:45 PM

Walmart treats its associates with respect only when state, federal, local laws or pubilc opinion dictates.  This applies only to its hourly paid associates.  Lower level saleried management associates are often treated with much disrespect.  They can be required to work long hours for weeks on end (in addition to the usual 52 hr. week) with no compensation than their normal salery. 
When it comes to assistant managers, I once overheard a regional vice president telling a district manager (in reference to needing more assistant manager trainees) that “We need more bodies.” How assistants are treated can vary greatly from store to store and from one district to another.
What is especially disturbing is balancing the books on the backs of the hourly associates.  When sales are down it is common practice to send associates home to cut payroll.
Walmart loudly touts how valuable its associates are and how important customer service is, but will not hesitate to cut hourly associates hours to cut payroll, leaving many departments without sufficient coverage.
At the same time the senior corporate officials never fail to get their yearly multimillion dollar salaries and stock options. The regional and district managers still get their six figure salaries also.  The only ones affected by lack of sales is first the hourly associates, then assistant managers and finally the store manager.
I use to have my own business.  We were a television and small appliance dealer.  The big box stores, most notably Walmart began to sell TV’s and microwaves at retail for substantially less than I could buy them for at “wholesale”. But that is another story.

Allen Montgomery in Connecticut
Sunday, July 23 at 06:28 PM

Hey Allen
Remember......Wal-Mart say’s that their employee’s are all Stars!!!

Make me laugh.
Wal-Mart should be on Saturday Night Live.

JM in USA
Sunday, July 23 at 10:01 PM

Wal Mart needs a union.. Because they can’t or won’t stand by their own policys.. They have a handbook they make out every year and They don’t stand buy their Handbook or policys that they make… Trust me they lied like dogs! They need the union to protect their employees from the lies Wal mart makes to their employees. Just like” you have job protection for 12 months when you go on LOA, even when you get displaced from you job,” This is a bunch of bull.... Wal Mart will not stand by what the say, They change the policy when ever they want to fit their needs...If they don’t want you, they change the policy to fit what they want..Not what they say they will do for you… When you sign that LOA contract they should stand up to what they signed and I did, they didn’t ... What happen to legal contract"s? Wal Mart does not stand up to agreements on paper or their word.. SO that is why the workers of Wal Mart should have a union to protect their rights from Wal Mart who can’t keep their word or on paper and in their own Handbooks… Wal Mart lies though their teeth to get what they want.. And they don’t care about the people they hurt, Just so wal Mart get their “ALL MIGHTY BUCK” to be that number one in the world!!!! Who cares about the peons who work for them… They can get rid of anyone they want..To fit there agenda…

Donna in Buckeye az
Tuesday, August 01 at 06:24 PM

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