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The U.S. International Trade Commission has made an announcement, and that announcement is one we shouldn’t be surprised by at this point. The ITC has ruled that U.S. tire companies are being harmed by cheap products from China, and as a result President Obama will have to decide whether to impose tariffs or quotas on the country that, thanks to Wal-Mart, is now America’s largest source of imports.

Of course, Wal-Mart’s tire business isn’t the only factor behind the ruling, but it certainly is one of the biggest. China sent 21 million tires to the U.S. in 2005, and that more than doubled to 46 million by last year. For its part, Modern Tire Dealer reports that Wal-Mart Stores Inc. has close to 3,200 outlets selling tires, although most of those sales are concentrated in its approximately 2,435-store Tire & Lube Service Centers nationwide.

The (United Steelworkers) union said China has more than tripled its tire exports to the U.S. between 2004 and 2008, ending jobs for 5,100 American workers. The union said another 3,000 workers would lose their jobs by the end of the year.

The next move for the ITC will be to come up with come up with recommendations on what the President should do to help U.S. companies, including a couple familiar names based in Ohio - Akron-based Goodyear Tire & Rubber Co. and Findlay-based Cooper Tire.

The case is the first test for Obama on trade with China, after he vowed during his presidential campaign last year to help unions or domestic industries seeking relief from foreign competition. Since the election, he also has pledged to avoid protectionism so as not to exacerbate the global recession.

U.S. agency rules for tire producers in China case [Bloomberg News]

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By this time we should all be aware of the controversies surrounding credit companies - in addition to increasingly complex and confusing options for credit applicants, credit card issuers have been raising interest rates and fees for many current borrowers, many of whom were in complete compliance with their card holders’ agreements when their rates were raised. This is a major reason behind the call for continuing credit card reform.

What many people might not be aware of is the struggle between credit companies and the retailers at which their cards are used. As Bloomberg explains, this could end in a giant Visa vs. Wal-Mart rumble:

Lawmakers are promising new rules to bring down the interchange fee, a charge on purchases sometimes topping 3 percent that’s split by the two banks serving the customer and merchant. Supporters of the legislation include the biggest retail chains, restaurants and small businesses, which say the fees erode profit and inflate prices...Interchange is the second-biggest cost after payroll, Target said, and merchants want to negotiate lower payments collectively without running afoul of antitrust law.

The issue has become such a hot topic, the Government Accountability Office has been ordered to study the effect interchange fees have on both consumers and merchants. The “interchange fee” is the fraction of every credit card transaction that the card’s issuer retains. When combined with additional smaller fees levied by a retailer’s own bank (to which the retailer first submits the transaction), interchange fees can cut into retailer revenue - especially important for those retailers with slim profit margins.

Interchange fees have risen over time - interesting, since technological advances would suggest the cost of such transactions should go down - and the result is a growing battle between retailers and card issuers. Wikipedia provides a surprisingly simple example of how the fees work:

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A consumer fraud lawsuit was filed by Arizona Attorney General Terry Goddard back in 2006 after his office found that from 2001 to 2006, Wal-Mart consistently rang up the wrong prices on items scanned in at the cash registers. It also failed frequently to put prices on items on the shelves, leaving consumers in the dark about overcharges. Now, nearly three years after it was first filed, Wal-Mart’s pricing case in Arizona has concluded.

Wal-Mart Stores has agreed to pay $1 million and hire independent monitors to ensure price accuracy at its Arizona stores under terms of a settlement with the Arizona Attorney General’s Office…

Wal-Mart, which trumpets its low prices, racked up nearly a half-million dollars in fines for problems including discrepancies between posted prices and checkout prices and the lack of posted shelf prices on many products. Attorney General Terry Goddard said Wal-Mart never fixed the underlying problems, instead paying the fines as if they were the cost of doing business.

On top of the money Wal-Mart has already paid out, the $1 million fine will be used to pay for the independent monitoring, and a portion of it will go to the AG’s office to pay for consumer education. Goddard’s Office has maintained that while the pricing irregularities were bad, the biggest problem revolved around the consumer’s inability to tell the true cost of a product at the point of sale.

The Yuma Sun has more details on the settlement:

The deal requires Wal-Mart to hire and pay for an independent monitor to conduct random checks of compliance with state pricing laws at each of the company’s 93 stores in the state during the next three years. Any time compliance at any store dips below 98 percent - meaning more than two items out of 100 checked are not priced or improperly priced - the company will pay a $2,500 fine. Repeat failures each would result in $5,000 penalties.

Back in 2006, Wal-Mart entered into a $1.5 million settlement with the Michigan Attorney General for similar pricing errors.

Arizona AG reaches pricing lawsuit settlement with Wal-Mart [Yuma Sun]

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While same-store sales rebounded ever-so-slightly in April, Wal-Mart continues to chug merrily right along, posting a 5% gain. Meg Marco at Consumerist explains it thusly:

A new survey of American consumers shows something very unusual — they’ve lost their interest in shopping. Is this lack of interest driving them to discount stores like Wal-Mart? Seems so...As interest wanes, more and more shoppers are heading to discount stores like Wal-Mart, says CNN.

So there you go. A little happy, uplifting news for your Thursday afternoon. We’ve lost our will to shop so much so, that we’re willing to go to Wal-Mart just so we can get it over with. So when the economy was going well Wal-Mart’s same store sales were flat, but with the economy in the tank, they’re rolling right along? Yay.

We’ll let Meg have the final word:

Have you “downgraded” to Walmart?

Walmart To Rest Of Planet: “What Recession?” [Consumerist]

A little less gloom at the store [CNN.com]

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Originally posted on Huffington Post

Illegal Aliens Deliver Fear & Loathing To Wal-Mart Pharmacies
By Al Norman

One of the world’s largest drug store chains is employing a very unusual---and provocative---method for sourcing its drugs.

This week mighty Wal-Mart found itself at the center of a street-level drug deal that raised larger questions about where and how the retailer gets its cheap drugs.

In June of 2008, I wrote in this space about Wal-Mart’s global sourcing empire for prescription drugs, quoting one pharmaceutical industry analyst as saying, Wal-Mart drugs “come from all over the world. They’re U.S. manufacturers, Israeli and Indian manufacturers. They have a choice of where to buy these drugs.”

But this week, Wal-Mart’s choice of drug vendors made some small town news. The corporation was tight-lipped about a narcotics source that raised lingering questions about where the giant retailer is really getting its cheap drugs, and what product safety and procurement protections are in place at the retailer’s pharmacies. In fact, the whole incident was described by the ABC news affiliate that broke the story as “strange.”

Strange, but also unsettling. ABC 4 News in Cedar City, Utah---a town of roughly 28,000 people---reported that a routine traffic stop of three men led to a bizarre tale of prescription narcotics, illegal couriers, a Las Vegas drug supplier, and the world’s largest retailer.

Diego Jimenez, Maricio Jimenez, and Kyle Gutierrez are being held in a jail in Iron County while local authorities sift through their odd story. Police pulled over their car as it was traveling north on Route 15 just south of 100 miles per hour. The men claim they were hired to deliver prescription drugs to at least three Wal-Mart stores, including the superstore on South Providence Drive in Cedar City, Utah, which has an in-store pharmacy. The three men reportedly had already been to the Wal-Mart supercenter in St. George, Utah, which is south of Cedar City on Route 15, and the Wal-Mart superstore on Route 15 further south in Mesquite, Nevada, on the border with Arizona.

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Dear Small Business Owner:

If Wal-Mart opens a store near yours, and you need to come up with a strategy to compete, don’t try to copy Wal-Mart by lowering your prices. It certainly won’t help - in fact it might even hurt - according to a new study published by the Tuck School of Business at Dartmouth College. The report finds that a new Wal-Mart has a strong negative effect on an existing retailers’ sales in general, though certain retail formats see more negative effects than others.

Having Wal-Mart as a new neighbor means that—no surprise—grocers and other competing retailers will likely take a sales hit...On average, neighboring grocers’ sales decline by 17 percent when a new Wal-Mart opens.

In fact, the study found that when Wal-Mart comes to town, local mass merchandisers, supermarkets and drug stores all see significant sales declines. Cutting prices only “mitigates” the harm for grocery stores, and doesn’t work at all for mass merchandisers and drug stores. And so perhaps the most important piece of information to come out of the report for any business looking to compete with a Wal-Mart moving into its neighborhood is this - the key is differentiation, not mimicry.

Grocers, in fact, should try to be the opposite of Wal-Mart, the study concludes, by offering more high-end items as well as more private-label, natural, and organic products. Rather than reducing prices overall, grocers should run more sales promotions.

When a Wal-Mart comes to town, retailers “should be scared,” one of the study’s authors, Dartmouth professor Kusum Ailawadi, told the Wall Street Journal’s Independent Street blog. But “it’s no use to blindly cut prices” because “price-sensitive consumers will move to Wal-Mart anyway.”

What You Can Do to Fight Wal-Mart [Wall Street Journal]

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Wal-Mart’s invasion of the Mexican banking sector continues. Last year, the Mexican government granted Wal-Mart the authority, making them only the second retailer in Mexico to do so, to set up banking operations at its stores. Wal-Mart Bank started fast, with 115,000 new clients its first year and opening service desks in 357 stores, according to an article in Mexico’s El Milenio. That growth may be under challenge, however as this December a law passed the country’s Senate that would potentially prevent Wal-Mart from banking at all.

The bill, originally aimed at providing protections to Mexican consumers who use financial services by outlawing banks from sending pre-approved credit card and other offers by phone or mail, and increasing competitivity in the banking sector, was not satisfactory to Mexico’s major banking players, mostly multinationals like Citigroup and HSBC. Before the bill passed, the banking lobby demanded that the Senators include an Amendment limiting the amount of a bank’s total deposits taking place outside traditional “branch” locations to 25%. To get around the proposed law, the National Banking and Securities Commission, which according to one leading Mexican columnist is hell-bent on deregulating the financial sector, intends to use an administrative measure to authorize Wal-Mart to operate each one of its cash registers in its stores “as if it were a bank branch”.

Considering the disastrous effects financial deregulation and predatory lending practices have had on the U.S. economy, and considering Wal-Mart’s track record of offering exorbitant interest rates on its store-brand credit card, these latest maneuvers give serious cause for concern. Furthermore, in banking with Wal-Mart, Mexican consumers might not suffer only financial, but also physical harm; due to Mexico’s enormous problems with fraud and robberies, traditional branch banks in the country today are heavily guarded and the multinational banks use numerous electronic and physical security measures to protect their customers; these protections would be mostly absent at Wal-Mart’s nationwide cash registers.

The original article (translated) in Mexican newspaper La Jornada is printed below:

In spite of the fact that the [Mexican] Senate set limits on banks’ ability to offer financial services through third parties, such as retail stores now labeled so-called “bank branches”, the National Banking and Securities Commission (CNBV) put forth an administrative measure to give Wal-Mart authorization for each one of its cash registers to become a bank branch.

This kind of authorization has been denied the retailer by U.S. authorities, said analysts.

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California Attorney General Jerry Brown - a former California Governor, CA Secretary of State, Mayor of Oakland, and President of the Patrick Stewart fan club - announced a settlement with Wal-Mart today in which the retailer was fined $1.4 million and ordered to implement a “get it free” program for California consumers. This after an investigation found that the store overcharged for numerous items at checkout.

Actually, the investigation and settlement announcement was a joint venture with San Diego County District Attorney Bonnie Dumanis, who has a much shorter but waaaaayyyyy more interesting Wikipedia entry than AG Brown. In fact, Dumanis, a Republican, is the first openly gay or lesbian District Attorney in the county, and the first Jewish woman to hold the post. Fancy that.

Anyway, back to the story we’re here to tell. Apparently, Investigators conducting random price-checking across the state found that 164 Wal-Mart Stores in 30 counties had made scanning errors. On average, customers who were overcharged paid an extra $8.40 at checkout.

Christine Gasparac, a spokeswoman for Brown, said state investigators concluded that “these were systemic problems,” not just run-of-the-mill mistakes.

“Systemic problems” might sounds bad to some, but one person’s systemic problems are another person’s financial opportunity. As the LA Times blog puts it - if Wal-Mart’s price scanners are wrong, you can make a quick $3. So the moral to this story - and every blog post I write today will have a moral - is to shop at Wal-Mart, cross your fingers that their registers go insane, and then collect a cool handful of George Washingtons.

Wal-Mart now promises to give back $3 to customers any time a pricing mistake is discovered. If the mispriced item sells for less than $3, you get it free. The refund program begins immediately and will last for four years, but it’s up to shoppers to spot any disparity between what a product is listed for on the shelf and what’s rung up by the price scanner.

The company was also ordered to pay $1.2 million in penalties; $190,621 to reimburse costs to numerous state agencies and prosecutors’ offices; and $50,000 to a consumer-protection prosecution trust fund.

Wal-Mart to pay $3 if price-scanning errors occur [Sacramento Bee]

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According to The Christian Science Monitor: “In Britain, carbon footprinting – used initially to broadly measure environmental impact across a company’s entire operations – is morphing into an eco-labeling tool.” This after a British group reported that 80% of a product’s carbon footprint is laid before the consumer actually drives out and buys or uses it.

Unfortunately, carbon-labeling appears to be a tool Wal-Mart believes the American consumer isn’t ready for.

As for carbon-labeling, Wal-Mart’s senior vice president of sustainability, Matt Kistler, says that he doubted existing methodologies and the Wal-Mart customer’s ability to relate carbon with consumer merchandise. “I’m not sure the consumer will ever make a purchase based on the carbon footprint,” he says, “especially the mass consumer.”

Possible. But I think Mr. Kistler underestimates the public’s knowledge on the issue. Sure, many consumers may not know what exactly a carbon-footprint is, but the majority have probably at least heard the term and know it relates in some way to the environment. Carbon-labeling may not affect the buying habits of the majority, yet even if a small percentage of Wal-Mart shoppers were to see the labels and be moved to research the issue further, that can’t be a bad thing, right?

Those making efforts to examine their carbon footprints often do so without transparency – essential to generating both customer support and supply-chain innovation.

At Wal-Mart, consumer transparency is largely tied in to its corporate press releases, a growing assortment of eco-labeled products, and in-store awareness campaigns. A more robust effort is the company’s “Love, Earth” jewelry, which enables customers to use the Internet to map where the jewelry’s gold and silver were mined and manufactured, including information on how the mines manage cyanide and waste dumps.

Are you ready to go on a carbon diet? [The Christian Science Monitor]

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On October 6, CBS19 in Charlottesville, Virginia, told us how a diabetic woman in Barboursville ended in the hospital after an insulin overdose.  Her insulin level was stabilized, but having lived safely with diabetes for 20 years, she wondered how she overdosed.  The culprit?  Several mislabeled “Reli-On” syringes, purchased from Wal-Mart, had made their way into her box of syringes.  They delivered a near-deadly overdose dose.  When she contacted Wal-Mart, they offered her a replacement box and according to CBS19, Wal-Mart and Reli-On (owned by Covidien Ltd.), both said: “ they were looking into the matter but have not recalled the item.”

Today, a full month later, Covidien finally announced a voluntary recall of over 450,000 mislabeled syringes that were sold exclusively at Wal-Mart and Sam’s Club stores. The Food and Drug Administration said that the syringes have the potential to deliver 2.5 times the normal dosage, in a story from the Associated Press - an amount of insulin that can cause hypoglycemia or even death. The syringes effected were labeled: ReliOn 1cc, 31-gauge, 100 units for use with U-100 insulin.  The FDA said there was only one reported incident and that the syringes were sold from August 1 through October 8. 

According to Reuters, Wal-Mart, in a good-faith effort, actually sent out 16,500 letters of warning to consumers that likely resembled this one, that Reli-On posted on their website. Hopefully such action won’t be necessary in the future, if more oversight is used when buying medical supply and quicker recall action is taken when and if an accident occurs . 

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Check out this week’s issue of the Wal-Mart Watch Weekly Update for Elected Officials – a compilation of Wal-Mart news from across the country and beyond.

This week’s issue begins on Wal-Mart and the economy, and whether Wal-Mart sales statistics can be used as a new barometer for the U.S. economy. You’ll also find stories on changes in shopper behavior, now that consumers are faced with less disposable income. And, you’ll find stories on Wal-Mart’s slowed growth, and the switch to smaller store formats by retailers across the country.

In addition to the economy, you’ll find stories related to next week’s election. Barack Obama highlighted the story of a 72-year-old man forced to go back to work for Wal-Mart in his half-hour special this past Wednesday night. Meanwhile, according to Reuters Wal-Mart vows to remain non-partisan in the 2008 election season, while the Financial Times reports on the candidates attempting to woo the so-called “Wal-Mart Moms.” Plus, there are suspicions that Wal-Mart is behind a new grassroots group recently set up to fight the Employee Free Choice Act, as reported in The National Journal.

Also: Find out whether a Wal-Mart case in Montana could lead to changes in that state’s campaign finance law.

And finally, check out our “Stateside” and “Wal-Mart International” sections to find out what’s going on with Wal-Mart around the country and across the globe. A California ballot measure could lead to increased demand for more humane animal products, while citizens in Virginia continue to fight Wal-Mart’s attempt to build near an historic Civil War battlefield.

Wal-Mart Watch Weekly Update for Elected Officials [October 31, 2008]

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The biggest oil company in the world and the biggest retailer in the world are loving life as the economy sinks.

Wal-Mart stock has risen 20% since the start of the fiscal year. Exxon Mobile just posted the largest quarterly earnings in American history- to the tune of 14.83 billion dollars.  The recession has done wonders for both companies; the volatile price of oil, puts Exxon Mobile in the position to capitalize on futures from supply-wary market analysts, while Wal-Mart continues to post double-digit profits because of the high number of price-conscious consumers who are forced to trade down - even if it’s against their will.

Many more-upscale retailers, such as Target, are not doing quite as well during the recession.  BusinessWeek reports that looking at the most recent quarter over the past year, Wal-Mart’s same store sales are up 5% while Target’s are down 0.4% and K-Mart’s are down 5.6%.

But these days are numbered. Wal-Mart knows that the recession won’t last forever. This week, they unveiled plans to focus more on renovating existing stores next year than opening new stores. Wal-Mart realizes that when the economy turns up again, many of its new customers will want to shop elsewhere - and they’re trying to stop it. The question is: will it work?

Wal-Mart Wins Big During Downturn [BusinessWeek]

These are heady times for Wal-Mart (WMT). The Bentonville (Ark.) retailer has been enjoying double-digit profit growth and strong sales as bargain hunters crowd its aisles. Its stock is up about 20% since the start of the year. And shoppers like Sal Garcia of Downey, Calif., are joining the growing ranks of loyal customers. “Look,” says Garcia, 52, putting the last of 10 shopping bags into the trunk of his Lexus, “all that for $54!”

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George Gombossy and the Hartford Courant continue to follow this issue, which has taken a turn in favor of the consumer. Numerous complaints made to the Courant caused both Governor Rell and Attorney General Blumenthal to take notice. The complaints were from consumers charging that major retailers have been violating state law by charging a second sales tax when merchandise paid for with cash is exchanged. Governor Rell ordered the state revenue department investigate the practice, and now AG Blumenthal has sent a letter to Wal-Mart telling the company’s general counsel in an oh-so-kindly way to please knock it off with the double taxation.

“Wal-Mart should refund any consumer who was denied a refund of sales tax on returned goods or charged a sales tax on even exchanges,” Blumenthal wrote to Sam Reeves, Wal-Mart’s division general counsel.

My favorite part of this story so far though has come from our good friend, Wal-Mart spokesman Dan Fogelman, who defended Wal-Mart’s policy.

Spokesman Dan Fogleman said Monday evening that although he has no idea what Connecticut sales tax law is, his company is following it.

That’s right - despite his cluelessness to the law and the company’s refusal to discuss why the accusations of so many customers are wrong, Fogelman can guarantee Wal-Mart is following state tax law to the tee. I love blanket statements with nothing to back them up.

Blumenthal Targets Wal-Mart on Sales Tax [Hartford Courant]

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The Hartford Courant has been following this story, and apparently the complaints against Wal-Mart have been increasing. Consumers have increasingly suggested that Wal-Mart has to be violating some state law by requiring them to pay tax again on exchanges made without receipts. Actually, according to the Connecticut Revenue Department, additional sales tax cannot be charged if a store has an even exchange policy. In his blog, the Courant’s George Gombossy came to the following determination:

My conclusion is that not only is Wal-Mart violating state laws by charging tax again without receipts, but is letting its employees falsely blame the state.

Gombossy points out that on its website, Wal-Mart says: “You can replace, exchange, or get credit for an item immediately in a store, pending product availability.”

The issue is now with the state’s Consumer Protection Department.

Consumer Protection reviewing Wal-Mart’s double tax policy [Hartford Courant]

Despite complaints from customers of its stores throughout Connecticut, Wal-Mart insists that it’s following state tax laws by requiring them to pay tax again on exchanges made without receipts.

My conclusion is that not only is Wal-Mart violating state laws by charging tax again without receipts, but is letting its employees falsely blame the state. But you be the judge.

The law seems clear:

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Connecticut Governor M. Jodi Rell is ordering the state revenue department to revue possible tax law violations by major retail chains within the state.

According to the Hartford Courant:

Gov. M. Jodi Rell appears to doubt the state revenue services department’s assertion that it is “on top of” complaints from consumers that major retailers in Connecticut are violating state laws by charging a second sales tax when merchandise paid for with cash is exchanged.

This practice has apparently been the subject of many complaints in the Constitution State, where sales tax cannot be charged on an exchange item if a retailer has a policy of permitting exchanges on identical items purchased with cash and without a receipt.

The Courant’s “CT Watchdog” column has been stirring the issue up for a few weeks now - dozens of people have written in to the paper to share their story of double taxation. There seems to be a couple of things going on here. The first question is whether retailers are acting illegally by charging sales tax on identical exchanges where sales tax was paid at the initial point of purchase - this becomes a bigger deal the more expensive the item being exchanged becomes. The second question is where the additional sales tax has been going...has the state revenue department been quick to address complaints related to this practice?

The Governor’s office apparently thinks it has not, so we’ll just have to keep watching to see if penalties end up being levied.

Gov. Rell to order tax department to look into state tax law violations [Hartford Courant]

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An article in today’s Wall Street Journal reports Wal-Mart recently conducted a survey to “test the voting preferences of men and women who are shopping at its stores.” Wal-Mart asked shoppers which candidate they’ll most likely vote for in November, and which issues facing the U.S. today are most important. The move not only gives politicians a look at a sought-after demographic - “Wal-Mart Moms” - it also places Wal-Mart at the heart of American politics.

Not surprisingly, the economy takes center stage for many of Wal-Mart’s shoppers. Like so many people living in the U.S. right now, Wal-Mart’s customers are trying harder than ever to make ends meet. And as the economy gets worse, many people are “trading down” to shop at Wal-Mart, even if they disagree with the retailer’s business practices.

Low wages, poor health care, and job losses are a major part of this picture. Despite Wal-Mart’s recurring suggestions that its low prices are a solution to our economic crisis, the retailer is actually a big part of the problem. By paying its workers so little and failing to provide health coverage for many of its workers, Wal-Mart is making it even harder for many families to stay afloat.

Congress is searching for answers to the economic problems we now face - whether they be emergency bailout measures or more long-term solutions like passing the Employee Free Choice Act. In the mean time, if Wal-Mart really wanted to help its shoppers with the issue they care about most, the company would start improving conditions for the lowest-earning members of its work force. That’s something Wal-Mart Moms on both sides of the political spectrum could support.

‘Wal-Mart Women’ Vote Remains in Play [Wall Street Journal]

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Wal-Mart stockpiles massive amounts of information about its customers. The retailer’s databases are enormous - bigger than the internet - and the information contained on its servers includes everything from which aisles shoppers choose to go down to the time of day chocolate milk sells quickest.

Now, the statistics firm ACNeilson (best known for its TV viewership ratings) is taking Wal-Mart’s data and helping the retailer understand its shoppers even better. At a recent conference of Wal-Mart suppliers, Neilson reps broke down how many cartons of eggs, car parts, and bags of dog food Wal-Mart customers buy each year. The study also revealed the average household incomes of Wal-Mart’s shoppers, the average number of trips each shopper makes and how much shoppers spent at the stores, on average. Ultimately, Wal-Mart hopes to use this information to customize store inventories and increase profits.

The study comes at a time when political analysts everywhere are desperately trying to understand Wal-Mart’s core demographic. “Wal-Mart Moms” may be the key to November’s election, some pundits say. Political alignment might not have been on Neilson’s questionnaire, but the study does provide some insight. According to Neilson, the average Wal-Mart shopper is a “pet-loving, pasta-eating, car-driving, gadget-obsessed dieter who either doesn’t care for cheese or buys it elsewhere.” (That part about the cheese may or may not impact the election directly.)

The data in the study doesn’t provide a complete picture of Wal-Mart’s shoppers - and it certainly doesn’t encompass all of the middle-aged women being wooed by politicians - but Wal-Mart is trying harder than ever to win over “the core female head of household” i.e., the “Wal-Mart Mom.” The retailer isn’t alone in catering to this powerful group not alone, and who knows - maybe quality dog food actually is the secret to winning the presidency in November.

Marketing firm looks at Wal-Mart shopper, trends [NW Arkansas Morning News]

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Several stories are out today warning consumers about dangerous dog food and soccer goals that are available at Wal-Mart and other retailers. 

But the biggest story here is the ‘voluntary recall’ of 600,000 more ‘Simplicity’ bassinets available at Wal-Mart and other retailers, in a story from Wall Street Journal.  This, barely three weeks after the U.S. Consumer Product Safety Commission (CPSC) issued a recall of 900,000 similar bassinets that Wal-Mart took its sweet time removing from their website.

The CPSC, in cooperation with the retailers affected by this week’s recall - including Wal-Mart - issued this statement.  I wonder why then, Wal-Mart appears to still be selling several of the models (Camille and Providence) listed as dangerous by the CPSC (and Wal-Mart themselves!) on its website?

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Remember back in June, when the FDA warned consumers about eating certain kinds of tomatoes coming out of Mexico due to potential salmonella contamination? And then expanded that warning to include certain peppers as well?  All vendors of these products, including Wal-Mart were to halt the sale of such items.

Cheryl Grubbs is filing suit against Wal-Mart Stores, Inc, alleging that her husband, Brian Grubbs came close to death after eating several jalapeno peppers that were purchased at a Wal-Mart and tainted with salmonella in an article published today in LawyersandSettlements.com.

[An earlier version of this blog post mentioned that the FDA recall in question occured on June 25, 2008. This was incorrect: we apologize for the mistake.]

Tomato-Pepper Salmonella: Why the Grubbs are Suing Wal-Mart

Dolores, CO: “Truckloads of contaminated jalapenos were turned back at the border before we bought them at Wal-Mart,” says Cheryl Grubbs, “so why did Wal-Mart still have them in their store?” Her husband, Brian Grubbs, almost died from the tomato/pepper salmonella outbreak, and Cheryl is furious because his illness could have been avoided.

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Several stories were published this week regarding Wal-Mart’s newest way to annoy the already frazzled American shopper - the “Smart-Network.” Set to launch in close to 300 stores by the holiday season and chain-wide by 2010, the in-store TV marketing network will include 27,000 screens and feature everything from time-specific advertisements to a series of ‘welcome screens’ to be displayed at store entrances. Stephen Quinn, chief marketing officer of Wal-Mart stores, discussed the new system in a story from Adweek:

“We’ve built a network tailored to the way consumers shop our stores, delivering helpful, custom content closest to the point of decision that helps them shop smarter”

“Smarter” is right: now customers won’t have to make shopping lists, decisions about what products are for them, or even have to open their eyes upon entering a Wal-Mart. All they have to do is listen for the comforting sound of a television screen beckoning them closer and closer to whatever Wal-Mart feels like selling them at that time. The company sank $10 million into R&D for this project, coming off slightly better-than-expected sales numbers for the month of August, and seems to show the company’s faith in the system.

Wal-Mart Smart Net Pushes Point-of-Sale Ads

Trying to reach additional shoppers, Wal-Mart has launched the Wal-Mart Smart Network, which supplies information via in-store TV. The company invested $10 million in the project billed as “shopper-intelligent network at retail.” Powered by Internet Protocol Television, the new net will appear in more than 2,700 stores nationwide.

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