0 comments

---

Cynics will tell you that Americans have the best politics money can buy. But Wal-Mart’s money doesn’t always buy support—especially in a controversial vote that pits history against sprawl.

Wal-Mart says its plan to build a 138,000 s.f. superstore near an historic Civil War battlefield near Fredericksburg, Virginia is an example of smart growth. The giant retailer was on the defensive this past week, when Virginia Governor Tim Kaine reached across the political aisle to his rival, Republican House Speaker Bill Howell, to jointly write a letter to the Orange County, Virginia Board of Supervisors urging them to work together with Wal-Mart and state officials to find a less intrusive site for the superstore.

In response to the Governor’s letter, Wal-Mart officials defended their plan. The company’s director of public affairs sent an email to the local media which pointed out that the land is commercially zoned, and that “more than 5,000 residential homes and other compatible commercial development are already built out dramatically closer to the preserved boundaries of the Wilderness Battlefield than our project.” But the company went even further, suggesting that “this project presents the unique opportunity to bring the interests of battlefield preservation and smart development effectively into balance, and that is precisely what we have accomplished with our current proposal.”

Wal-Mart did not explain how a 51 acre development with a store on one level more than twice the size of a football field and an enormous parking lot was an example of “smart development.”

Read the rest of this story ...

0 comments

---

With Wal-Mart these days, the discussion tends to be about health care, labor and expensive PR. But there’s one thing that has never changed: Wal-Mart’s impact on local communities. In this article, originally posted at Battlemart, Al Norman tells us the frustrations of Deptford, NJ - which now has 10 different Wal-Mart’s within a 10 mile radius.

The Mayor of Deptford, New Jersey is unhappy with Wal-Mart’s superstore saturation of his community. This trade area is flooded with Wal-Mart---but it wasn’t always so. Sprawl-Busters reported on October 14, 2004, that residents in Deptford were celebrating a victory over Wal-Mart. The township had rejected a Wal-Mart proposal on a tract of land known as the old RCA site.

The retailer had proposed to build a Wal-Mart and a Sam’s Club along Route 41, but the Concerned Citizens of Deptford helped push that project off the tracks. Even in the middle of their victory, however, local residents were organizing to fight two additional Wal-Mart saturation plans. “We’re just going to get some more ducks in a row,” one CCD member was quoted as saying in the Philadelphia Inquirer. “They are not going to go away. We all know that. And we’re not going to go away, either.” The Deptford Planning Board buried the 2004 Wal-Mart proposal based on a zoning code that was only two days old, which changed the town’s Master Plan, and put a cap on the size of retail buildings at 100,000 s.f. Despite the 2004 victory, a long line of Wal-Marts was taking form. A third Wal-Mart was planned near Route 41 and 47.

“The battle continues,” Mike Campbell, a CCD leader, told the media 5 years ago. “We can’t be lulled into a false sense of security at this point. We’re going to have to continue to keep a close eye on this.” Five years later, the Courier Post reports this week that the new Wal-Mart being built is about 2 miles from Deptford’s other 24-hour Wal-Mart Supercenter at the Deptford Landing shopping center, and that store is less than 9 miles from a 24-hour Wal-Mart Supercenter in Washington Township. “When the new store in Deptford is done,” the newspaper reports, “there will be 10 Wal-Marts in an approximately 10-mile radius between Deptford and Burlington townships.”

Read the rest of this story ...

0 comments

---

TIAA-CREF (TC), the nation’s largest pension system, proclaims itself a leader in corporate/social responsibility, as well as in customer satisfaction.

Although its tagline is “financial services for the greater good,” TC invests in some of the worst corporate actors: Coca-Cola, Nike, Wal-Mart, Reynolds American, and Costco (in Mexico). The pension fund’s socially irresponsible investing has caught the eye of some of its own investors. The 1.4 million-strong American Federation of Teachers passed a resolution critical of TC’s investment in the first three of these companies and demanded that it hold these companies accountable on labor issues.

After years of shareholder lobbying, TC finally agreed to talk to some of these companies. Unfortunately, TC’s “quiet diplomacy” over years has led to nothing substantive with the companies. Its Policy Statement on Corporate Governance states,

“While quiet diplomacy remains our core strategy…TIAA-CREF’s engagement program involves many different activities and initiatives, including…engaging in public dialogue and commentary… engaging in collective action with other investors…seeking regulatory or legislative relief…commencing or supporting litigation.”

TC’s press releases state that “engagement is a multi-step process...TIAA-CREF believes that we should explore the ways in which to influence the companies’ behavior and thereby help bring about positive social change” and that they “sometimes threaten tougher actions.” Notably, a January 24, 2009 New York Times article asserted that changes in Wal-Mart’s environmental practices were prompted by the aggressive work of activists.

Read the rest of this story ...

0 comments

---

What do Michael Bloomberg, Donald Trump, and Howard Brookins have in common? They all don’t understand how Wal-Math works. The New York City Mayor, the entrepreneur, and the Chicago Alderman all think that Wal-Mart means new jobs. But according to “Wal-Math,” one job created at Wal-Mart, minus one job destroyed at another retailer, equals one job.

On April 26, 2009, Sprawl-Busters reported that Wal-Mart was still trying to use the jobs argument to open a second store in Chicago, Illinois. But the company has been facing a strong political wind of opposition in the Windy City. The retailer’s attempts to open superstores in Chicago has resulted in one open facility, and five years of spinning wheels. Wal-Mart and big city Mayors generally don’t get along. But Wal-Mart figures that as the economy slides downward, and more people lose their jobs, “Wal-jobs” will start to look better, and more cities will open up their doors to the discounter. Boston Mayor Tom Menino wouldn’t let Wal-Mart into the Downtown Crossing area. Wal-Mart’s forays into Brooklyn, New York have been very bloody. But last June, speaking at an analysts meeting, former Wal-Mart CEO Lee Scott said that New York’s Mayor Michael Bloomberg wanted a Wal-Mart. “I just talked to the Mayor,” Scott said, “who wants us. And Donald Trump called this week. And he’d like to have us. But in general, New York City hasn’t called and said please put a store there. Things get bad enough, they will.” This waiting for things to get “bad enough” is the core strategy in Chicago. 

Read the rest of this story ...

13 comments

---

Below, Al Norman writes on the State of Massachusetts’ multi-million dollar health care handout to Wal-Mart, also published on our Battlemart Blog:

Two years ago, Wal-Mart workers and their children cost the taxpayers of Massachusetts $7.2 million for subsidized health care. A new report released this past week shows that this tax subsidy has more than doubled to $15.5 million. In the middle of one of the worst budget crises in state history, health are welfare for large national chain stores are a drag on the state and federal taxpayer.

On February 12, 2007, Sprawl-Busters reported that an annual report released by the Massachusetts Division of Health Care Finance and Policy, revealed that state taxpayers in the Commonwealth spent $7,223,580.77 to provide subsidized health care insurance for Wal-Mart workers—the highest cost any employer shifted to the state. The study, “The Use of Public Health Assistance in Massachusetts in FY 2006: Employers Who Have Fifty or More Employees Using MassHealth or the Uncompensated Care Pool,” is the third such analysis of employers who have 50 more workers using public health assistance. A state law passed in 2004 requires the state to produce such studies. The report released in 2007 covered the period July 1, 2005 to June 30, 2006.

The analysis estimates that in FY 2006, a total of $234.2 million in public funds were spent on health care for employees and their dependents working for employers who had 50 or more employees subsidized by two major state health care programs: Medicaid and the Uncompensated Care Pool. The state reports estimates that a total of 6,070 Wal-Mart employees and dependents are costing state taxpayers $7.223 million a year. Of that total, 1,038 Wal-Mart employees used the Uncompensated Care Pool, 2,079 Wal-Mart employees were on Medicaid, and 2,953 dependents of Wal-Mart employees, mostly children, used benefits paid for by Medicaid. The cost of Wal-Mart dependents alone came to $4,328,155. According to Wal-Mart, the retailer had 10,785 employees in Massachusetts. Using the FY 2006 figure of 3,117 Wal-Mart workers on Medicaid and UCP, that means at least 29% of Wal-Mart’s workforce in the Baystate received their health care subsidized by the public.

Read the rest of this story ...

25 comments

---

Wal-Mart has been compared to a retail plague: it kills off the weak, and makes everyone else sick. Economic illiterates (i.e. elected officials) propagate the illusion that a new Wal-Mart store means new jobs. In many markets, unfortunately, Wal-Mart represents a seismic shift in market share, which produces no new net jobs, just transfers them from weakened or dying merchants, into Wal-Mart cash registers.

Call it the Circuit City Syndrome, or some other defunct chain store’s name---the impact is a form of economic dislocation. The latest victim is the grocery chain Bi-Lo, which this week filed for bankruptcy. The company, which is owned by a private equity investor, Lone Star Funds, filed for protection from creditors. The grocery chain operates 215 supermarkets in 4 states: North and South Carolina, Georgia, and Tennessee. The retailer said its stores will remain open during the Chapter 11 proceedings. According to papers filed in U.S. Bankruptcy court in Spartanburg, South Carolina, Bi-Lo listed debt of as much as $1 billion. Bi-Lo pointed out that its Chapter 11 filing was voluntary, and that it hoped to emerge out of bankruptcy as soon as possible. “On an operational level, we are making significant progress this year, and we have seen solid sales momentum and strong cash flow,” said Bi-Lo’s president. “Our strong operations and liquidity position continue to demonstrate the strength of our business model, and the company has continuously satisfied all of its obligations to date, under the term loan and otherwise.”

The company said that in order to maintain business operations and customer service without interruption while addressing its debt maturity, a court-supervised restructuring was appropriate. “We intend to move through this process as quickly as possible, and we firmly believe that this course of action will better position Bi-Lo for continued growth and long-term success. As a result, Bi-Lo will be well positioned to continue building on the commitment we have made to our customers and the communities we serve.” Bi-Lo has received a $100 million debtor-in-possession (DIP) financing through GE Capital, which the chain hopes to use to meet its operational business obligations. Bi-Lo workers should not miss a paycheck, because the company has asked the court for permission to pay its workers without interruption. In its press release, Bi-Lo said, “One of BI-LO’s highest priorities is to ensure the restructuring process does not impact its customers. BI-LO expects its customer policies and programs, including its BONUSCARD® and associated promotions, returns/exchanges and other special promotions, to continue without interruption.”

Read the rest of this story ...

0 comments

---

The following post appeared originally on the Battlemart Blog.

In Chicago, Illinois, Wal-Mart doesn’t need a weatherman to know which way the winds blow. On February 6, 2009, Sprawl-Busters reported that Wal-Mart wanted to increase its one-store presence in the windy city. But stiff political winds are likely to continue to blow the company off course. In May of 2008, Wal-Mart decided to abandon efforts to locate a store on the South Side of Chicago. The corporation said it was “turning its attention to a backup plan of opening stores just outside city limits.”

Chicago Mayor Richard Daley had reportedly advised Wal-Mart that he didn’t want controversial headlines about big box battles in his city while his Administration pursues an effort to host the 2016 Olympics in Chicago. That decision won’t be made by the Olympic Committee until the fall of 2009. If true, that put a strangle hold on any Wal-Mart projects in the short-term.

In March of 2008, city officials denied Wal-Mart’s request to build a 150,000 s.f. store in the huge Chatham Market project, which spreads out over 50 acres on the site of a former steel plant, with a total of 418,000 s.f. of retail space. Chicago’s Planning Commissioner notified Archon, an Irving, Texas-based developer that Wal-Mart would not be allowed to open at Chatham Market as proposed. Despite this history, rumors about Wal-Mart’s renewed interest in Chicago began surfacing again last month. After losing its battle at the Chatham site, Archon, which is owned by the Goldman Sachs Group, put Wal-Mart’s piece of the southside
property up for sale, hunting for a new, and less-controversial anchor.

Read the rest of this story ...

1 comments

---

Al Norman takes a good look at the Wal-Mart saga in Marion County, South Carolina. Originally posted on Battlemart.

The night sky will soon be returning to Mullins, South Carolina. Actually, the stars might not be visible, but the lights should be turned down lower at midnight, now that Wal-Mart has announced that superstore #1869 will close from midnight to 6 am. The decision takes effect on March 13th, and Wal-Mart’s website still lists the store at 305 Commerce Drive in Mullins as open 24 hours. According to a company spokesperson, the overnight shift of workers will be absorbed into the store’s other shifts during its new operating hours. No one will lose their job, but store Manager Willie Holland refused o answer any questions from South Carolina News about the why the hours were cutback as his supercenter. A sign posted on the doors to the store tell customers that the new hours will change in mid-March.

In October of 2007, the Mullins store was reopened as a superstore. The location for 15 years had been a Wal-Mart discount store with few groceries. When Wal-Mart expanded the store, it said 100 jobs were added, making the grand total 250 jobs. The superstore opened on October 24, 2007. In announcing the new store, Wal-Mart said: “After more than 15 years of serving the community as a discount store, residents will now find groceries, general merchandise and time-saving services in one convenient location. Located at 305 Commerce Drive, the new store was painted in a color palette complementary to the area. “This is an exciting time for our associates,” said Store Manager Jason Eudy, who is no longer the store manager. “We’ve all been working hard to prepare the store for
opening and are looking forward to serving our customers in Marion County with the conveniences, savings, selection and services that a Supercenter
provides.” The 153,430-square-foot Supercenter features a full line of groceries including bakery goods, frozen foods, meat and dairy products, fresh produce and a variety of organic offerings. Additional store features include a Tire & Lube Express, a family fun center, a one-hour photo lab, pharmacy and a Wal-Mart Connect Center for wireless phone sales. Leased areas and services include a SmartStyle Family Hair Salon, a branch of Woodforest National Bank and a Subway restaurant. “The store will be open to customers 24 hours a day, seven days a week,” Wal-Mart boasted.

Now, less than a year and a half later, Wal-Mart is shutting down its overnight hours. There is only one reason why Wal-Mart would close down at night: business has not been as robust as the company expected. But corporate headquarters is not about to shed any light on why this Wal-Mart went dark.

Read the rest of this story ...

13 comments

---

Wal-Mart is trying to clear out its legal closet by buying off scores of “old” lawsuits brought by its own workers that have been sitting on the racks for years. This week, a judge in Colleton County, South Carolina approved a Wal-Mart settlement in a $49 million class action lawsuit---one of as many as 76 similar wage and hour class action lawsuits filed across America against the nation’s largest private employer.

Wal-Mart has the largest selection of lawsuits of any retailer in American history. The South Carolina case, known as Carter v. Wal-Mart, was originally filed roughly six years ago. In a prepared statement approved by Wal-Mart, the lawyers representing the plaintiffs said, “We are pleased with the preliminary approval of the settlement by the Court. We hope that Wal-Mart’s industry-leading compliance model will set an example for the retail industry.” As part of the settlement, Wal-Mart agreed to continue to maintain electronic systems, surveys, and notices that will protect the rights of workers. “This lawsuit was filed years ago and the allegations are not representative of the company we are today,” a Wal-Mart spokesperson said in a press released dated February 18, 2009. “Our policy is to pay associates for every hour worked and to make rest and meal breaks available. This is a commitment we make to the more than 1.4 million associates who choose to work for Wal-Mart and serve our customers and members every day. We have worked hard to have the right communication, processes, and systems in place to help ensure we live up to this commitment.”

Read the rest of this story ...

9 comments

---

Despite being shut out of Chicago after years of attempts to crack the windy city, Wal-Mart is back at it again. A report from the Chicago Tribune today tells us that the company is in talks to get “as many as five” stores approved for Chicago - citing “the need for new investment to boost the sagging local economy.”

Al Norman’s post below is cross-posted on the Battlmart Blog

Wal-Mart would not comment publicly on this story---but they’ve clearly been talking to the politicians behind the scenes. The Chicago Tribune reports today that the giant retailer wants to give its one store in the windy city some company. Despite the stiff winds that have blown against them, Wal-Mart management is trying to fly in below the O’Hare radar.

On May 11, 2008, Sprawl-Busters reported that Wal-Mart had decided to abandon efforts to locate a store on the South Side of Chicago, and that the corporation was “turning its attention to a backup plan of opening stores just outside city limits.” The Tribune reported that Chicago Mayor Richard Daley had advised Wal-Mart that he didn’t want controversial headlines about Wal-Mart battles in his city while his Administration pursues an effort to host the 2016 Olympics in Chicago. That decision won’t be made by the Olympic Committee until the fall of 2009. If true, that put a strangle hold on any Wal-Mart projects. In March of 2008, city officials denied Wal-Mart’s request to build a 150,000 s.f. store in the huge Chatham Market project, which spreads out over 50 acres on the site of a former steel plant, with a total of 418,000 s.f. of retail space.

Read the rest of this story ...