Wal-Mart Worries About Holiday Profits

This story from Reuters explains that Wal-Mart’s recent decision to step up toy testing may have more to do with the Christmas shopping season than children’s safety. As one Wal-Mart spokesperson said, “Reassurance is really our key point.” That is, reassurance and not *actual* safety. If it takes the prospect of a poor holiday sales season to get Wal-Mart to take responsibility for its products, then great. But as long as Wal-Mart focuses solely on profits no matter what the cost, this type of problem will continue to resurface.

Wal-Mart seeks more toy tests before holidays [Reuters]

Wal-Mart Stores Inc said on Thursday it was asking suppliers to resubmit testing documentation for the toys it sells after Mattel Inc’s recall this month of millions of Chinese-made toys.

The world’s largest retailer is also taking other measures to reassure consumers about the safety of its toys ahead of the critical holiday shopping season.

In an e-mailed statement, Wal-Mart also said it hired independent laboratories to conduct an average of 200 additional tests each day. It also said it was working to find new toys and manufacturers from all over the world to give parents greater choice.

At the same time, Wal-Mart said it was “ready to help leaders in China who are implementing new testing procedures.”

The independent labs hired by the retailer, Bureau Veritas, Intertek and Consumer Testing Laboratories, are already used by Wal-Mart and its suppliers, spokeswoman Melissa O’Brien said.

The extra testing capacity will be used to help smaller toy brands who may not have access to such testing and also to test other products as Wal-Mart deems necessary, O’Brien added.

The toys being tested first are those for children under the age of 3 and those with surface coating or magnets.

The company said it would share results with retailers and manufacturers, and it planned to work with the Toy Industry Association to support new measures aimed at ensuring higher safety standards.

The announcement came a few hours after a U.S. House of Representatives panel said it would hold a Sept. 19 hearing on China-made toys.

Posted by Alex Goldschmidt on Friday, August 24, 2007

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