Can’t Teach an Old Dog New Tricks
Like an old dog that can’t learn new tricks, Wal-Mart still hasn’t learned how to remove recalled products off its shelves. And according to from the Straits Times, this sort of negligence can be deadly.
On September 12, we noted that Wal-Mart stores in Shanghai had not removed milk powder from their shelves, despite ongoing recalls around the rest of China. According to an article from Ifeng, milk sales were continuing “as usual”. Now, the media is reporting that “up to five per cent of infants in Shanghai could have kidney stones after drinking tainted milk formula” and that a Wal-Mart store in Macao is still selling Chinese milk.
How many children must die before Wal-Mart learns how to effectively recall products? From melamine tainted infant formula to bassinets with strangulation hazards and to lead tainted bibs and toys, Wal-Mart has continually dragged its feet on recalling dangerous products, particularly for children and babies - making clear that the retailer’s profit motives come before the safety of their customers.
Please, Wal-Mart, before we read the headline next week “Macao Mother Looses Child Due to Melamine Tainted Milk from Wal-Mart” take action and remove these products from your shelves in a systematic, responsible way.
5% of Shanghai kids ill [Straits Times]
UP TO five per cent of infants in Shanghai could have kidney stones after drinking tainted milk formula, media reported on Friday, as publicity surrounding the scandal was muted by China’s manned space launch.
Beijing is battling public alarm and international dismay after thousands of Chinese children were hospitalised, sick from infant milk formula tainted with melamine, a cheap industrial chemical that can be used to cheat quality checks.
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Posted by Michael Mignano on Friday, September 26 | 5 comments | Permalink
Wal-Mart China Unionized, Collective Contracts Signed
Within two months of starting an intense campaign to get Wal-Mart China stores to sign collective contracts, the Chinese labor union has declared success. All Wal-Mart store contracts include provisions on yearly wage and hour increase consultations in addition to including many, if not all, of the following provisions on: break time, holiday time, contract supervision, insurance, worker safety, women workers’ special rights and benefit protections, worker discipline, worker training, work quotas, etc.
Congratulations to the Wal-Mart China workers and their unions for negotiating and safeguarding their rights!
Wal-Mart China’s 108 Stores Sign Collective Contracts [Xinhua]
Wal-Mart’s 108 unionized stores in the China have all agreed to and signed collective contracts. This historic breakthrough was the result of the legal push by China’s labor union to organize Wal-Mart.
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Posted by Research Team on Friday, September 19 | 74 comments | Permalink
Friday Blog Round-Up: Weight Loss Edition
THE NEWEST FAD DIET: LIVING NEAR A WAL-MART
Exciting news from the Wal-Mart Watch blog room: since we found out about this study earlier in the week, we’ve all started spending lots of time at our nearest Wal-Mart, and we’re loosing weight like crazy! As Richard Simmons says, “We’re fabulous!” Diets in Review points out the real reason Wal-Mart shoppers might be losing weight: they’re too poor to eat!
Wal-Mart Good for Your Health? [Diets in Review]
I’m still skeptical. For one, there seem to be too many variables to prove their theory. Plus, the study also found that an additional Wal-Mart also led to decreased exercise. Either way, it seems there are other factors to include, like a a down economy that may lead people to eat out less, which should have a positive effect on waistlines.
The Wal-Mart Diet [Seeking Alpha]
Courtemanche and Carden also found evidence that purchases of fruits and vegetables increased after the introduction of a big box retailer. But the news isn’t all good: An additional Wal-Mart also led to decreased exercise, though the reasons for this are somewhat mysterious. The researchers suggest a couple of reasons...Neither of these is very convincing though.
NeoNeocon and the Healthy Food Review offer a different explanation:
My theory on the Walmart Diet [NeoNeocon]
I beg to differ. Even though the study reports that a Walmart leads to decreased exercise, I still think exercise might be the key. My theory is that whatever the decrease in other exercise reported in the study (and I assume activity level was not measured, but was based on self-report), it left out one extremely important factor: the exercise involved in shopping in a Walmart itself. Think about it—have you been in one lately? I have. Those babies are huge.
Wal-Mart Diet Exists According To New Study [Healthy Food Review]
My theory? Shopping at a Wal-Mart Super Center especially gets you walking a lot more than it does at a smaller store. In fact, when I lived in Colorado, my local Wal-Mart Super Center was in quick walking distance in cold snowy, weather, and my husband and I would purposely go to get out and do a bit of a walking workout. In Las Vegas, I’ve been doing it all Summer in the triple digit temperatures.
Shopping At Wal-Mart Makes You Thinner [Health Care BS]
And just think: while you’re in there buying your cheap fruits and veggies, you can go to the retail health clinic and have that sinus infection looked at. I love the free market!
After the jump, Wal-Mart moms and unions in China.
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Posted by Alex Goldschmidt on Friday, September 12 | 3 comments | Permalink
Wal-Mart Fails to Meet Donation Goals - UPDATE!
You might recall several posts we did regarding Wal-Mart’s donations to China’s earthquake relief efforts. Those posts all cited numerous articles which detailed not only Wal-Mart’s meager donation pledges, but also that Wal-Mart had largely failed to follow through on their donations. Worse, another story surfaced about how Wal-Mart would potentially profit off the earthquake victims by building stores in the earthquake region.
All these posts were a bit too much for Wal-Mart China’s director of public relations Jonathan Dong. He even wrote us a strongly worded letter to express his dismay. Unfortunately for Jonathan Dong, this story just won’t end.
According to a recent article from Beibu Gulf ASEAN Economic Web, Wal-Mart STILL has not met its donation targets! Luckily, Jonathan has prepared a response: “Spending money is hard.”
Public relations director Jonathan Dong (董玉国) explained “contributing money is easy; spending money is difficult. On May 23, Wal-Mart decided to give away an additional 17 million . The company immediately looked for projects to aid, looking at subsidizing schools, orphanages, etc. But Wal-Mart found out that many [companies] were financing the same projects.” At present time, Wal-Mart is in the process of seeking suitable projects to support.
Imagine that.
Posted by Michael Mignano on Friday, September 12 | 26 comments | Permalink
Consumer Alert
According to a recent article in Bloomberg, a series of babies have fallen ill with kidney stones across seven provinces in China - one has died. It is suspected that melamine contaminated powdered milk manufactured by Sanlu Group is responsible. The Chinese ministry of health stated that Sanlu has recalled the milk powder while the investigation proceeds.
Bloomberg also notes that Wal-Mart Stores Inc. is said to be pulling Sanlu milk powder off its shelves, citing Wal-Mart China spokesman Dong Yuguo. However, in a report from Ifeng Finance (China), Wal-Mart stores in Shanghai are still selling powdered milk “as usual”.
Exacerbating this horrific situation, “contaminated baby formula may also have reached the U.S., according to the U.S. Food and Drug Administration, which warned consumers that illegally imported Chinese milk powder may contain melamine.”
China Says Sanlu Milk Likely Contaminated by Melamine [Bloomberg]
China’s health ministry said milk powder produced by Sanlu Group Co., 43 percent owned by Fonterra Cooperative Group Ltd., may have been tainted with the chemical melamine and could be linked to kidney stones in infants.
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Posted by Michael Mignano on Friday, September 12 | 8 comments | Permalink
“Boss, Give Me a Raise!”
According to an article out of Zhejiang, China, Wal-Mart workers in Jiaxing have recently earned the right to demand raises from their boss. This little known practice at Wal-Mart stores throughout the world can be realized, the article says, by unionizing and signing a collective contract. The particular contract that Jiaxing Wal-Mart workers signed gives the workers the right to negotiate issues such “wage levels, wage increases, paid vacation, as well as worker protections.”
In addition to Jiaxing workers, Wal-Mart employees in Changchun also signed a collective contract this week. Perhaps this is making Wal-Mart U.S. a little more than nervous.
In Jiaxing a Collective Contract Is Born: Wages Will No Longer Be Up To The Boss [Zhejiang News]
“Boss, give me a raise.” This sentence is something workers dare to think, but do not dare say. Yesterday morning, 350 workers from the Jiaxing Wal-Mart store on Hong Street agreed to and signed a collective contract. This means that in the future, workers will have the proper right to discuss pay levels with their boss. According to our understanding, this is the first time a collective contract has been attempted in Jiaxing’s service industry.
[continued below]
Also see Wal-Mart Changchun Branch Signs Collective Agreement [China CTV] after the jump.
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Posted by Michael Mignano on Wednesday, September 10 | 1 comments | Permalink
Wal-Mart’s Latest Failure?
According to Chinese media, Wal-Mart’s latest international failure might be Wal-Mart China - which, within its 12 years in China, has failed to become profitable. One article notes that Wal-Mart’s “market share has retreated in defeat” and that Wal-Mart’s lofty sales goals are extremely “distant” figures.
Even according to data from China’s Department of Trade Wal-Mart’s rank within the retail sector has dropped from 17th in 2003 to 20th in 2004—and in 2005, Wal-Mart dropped again to an astonishingly low 30th.
To analysts, Wal-Mart China’s financial failures may be a significant factor in why Wal-Mart decided to abandon its Wal-Mart Asia headquarters in mainland China. However, Wal-Mart Asia chairman and CEO Vicente Trius makes clear that China remains important to Wal-Mart’s global purchasing. At the same time, though, Trius also states that locating the Asia headquarters in Hong Kong will preserve the “independent nature” of the Chinese operations—perhaps a hint that Wal-Mart wants to isolate the damage.
At any rate, it looks like Wal-Mart China has interesting times ahead of it. See both articles below for more details.
No Opportunity for a Wal-Mart Asia Headquarters in Shenzhen [Finance and Economics]
Wal-Mart, who entered China 12 years ago and still has not made a profit, announced on September 3 that it will establish its Asia headquarters in Hong Kong. Before this, it was widely spread that Shenzhen, Wal-Mart China’s headquarters and Wal-Mart Global Procurement Center, would be Wal-Mart Asia’s headquarters.
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Posted by Michael Mignano on Friday, September 05 | 31 comments | Permalink
Wal-Mart Tries Once Again in Southeast Asia
An article today from Reuters brings news that Wal-Mart is looking to expand its presence in Southeast Asia. Wal-Mart has come to rely more and more on its international stores for sales growth, and expanding into Southeast Asia is only one part of the company’s international expansion plan. From Reuters via the International Herald Tribune:
Wal-Mart Stores, the world’s biggest retailer, is considering its first stores in Southeast Asia and expects to approach 10 percent growth in international sales to $100 billion this fiscal year despite a global economic slowdown.
This is not, however, Wal-Mart’s first venture in Southeast Asia. The company’s first effort in the region was a partnership with Indonesia’s powerful Lippo Group. In 1995, Wal-Mart and Lippo worked together to open stores in Jakarta. As the New York Times reported:
The 180,000-square-foot Wal-Mart Supercenter, planned for Lippo Village, a Jakarta mall owned by the Lippo Group, will be the first in Indonesia. Wal-Mart, which is based here, said it would provide expertise and management services for the store, which Lippo will own. By the time the store opens, Wal-Mart will have stores in Indonesia, Hong Kong and China, company officials said.
The partnership failed. Less than three years later, after opening two stores in Jakarta, Wal-Mart announced that it was abandoning the project. From BusinessWeek:
Wal-Mart Stores Inc. confirmed on Wednesday, Feb. 25, that it’s trying to end a franchise agreement with a unit of Indonesia’s powerful Lippo Group. The partners operate two stores in Jakarta under the Wal-Mart banner. About 13 U.S. expatriates, who supported the store operations, have left Indonesia, a Wal-Mart spokesman says.
Even before the Lippo debacle, Wal-Mart partnered with Thai company Charown Pokphand Group. That partnership was also a failure, and ended after less than a year. Will Wal-Mart’s most recent efforts to build in Southeast Asia prove different than its previous attempts?
Wal-Mart sees potential growth in Southeast Asia [Reuters via International Herald Tribune]
Posted by Research Team on Wednesday, September 03 | 2 comments | Permalink
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