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While Wal-Mart has announced more retail jobs for the United States, the company continues to draw nearer to an agreement that would send IT tech jobs to India.

From Citizen Economists:

In 2009 it (Wal-Mart) now predicts it will add another 22,000 positions nationwide. In fact in some hard hit states like California, Florida and Michigan, Wal-Mart plans to add over 1,000 jobs in each.

More jobs are great, but the majority of them are going to be of the lower-paying, sales associate variety. Meanwhile, however, Wal-Mart is drawing nearing to awarding multiple outsourcing contracts for managing its business applications and other back office activities to firms in India. The contracts could be worth $500 million.

According to BusinessWeek, Wal-Mart is doing so under the guise of “globalizing its information technology sourcing initiatives,” which is certainly its prerogative. But you would think that a U.S. company that has sought to build its standing as the very embodiment of American ideals would, during times of economic struggle, take an opportunity like this to find domestic firms to fulfill its IT needs. Provide hard working Americans with higher paying jobs. You would think that. But you’d be wrong.

“Wal-Mart has been testing the waters by outsourcing smaller projects to companies such as Infosys, TCS and Wipro. Now, the retailer wants to flesh out a more comprehensive outsourcing strategy and has shortlisted these tech vendors,” said a senior executive of one of the tech firms exploring business opportunities with Wal-Mart. He requested anonymity because he is not authorised to speak to media.

Wal-Mart, despite enjoying growth during the current economic climate, continues to show that while saving customers money is nice, saving its own money is paramount. BusinessWeek points out that UK retailer Tesco saves over $60 million every year by outsourcing its IT projects to India.

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Last week was supposed to be Wal-Mart’s grand entrance into India. The company’s joint venture with Bharti Enterprises was raring to open its wholesale store in Punjab—that is, until inter-communal and religious violence among Sikhs, who form a majority of the province’s population, temporarily shut down commercial activity.

To be clear - Wal-Mart had nothing to do with this particular episode. Reuters and other sources say that the violence was sparked by an attack on a Sikh temple far away in Vienna, Austria.

But the incident should remind us all that India is unlike places, such as the U.S., with more established channels of dissent. In Wal-Mart site fights across America, local battles against Wal-Mart have primarily taken place through petitions and city council hearings, but in India it could well happen on the streets. Wal-Mart already has enough inevitable opponents in India, including the country’s estimated 12 million shopkeepers whose livelihoods could be threatened by the foreign retailer.

As we’ve discussed before, there has already been significant resistance to Wal-Mart in India. In 2007, shopkeepers and farmers took to the streets and turned Mahatma Gandhi’s “Quit India” slogan (which originally urged British imperial commerce to stop crushing India’s native industries) into “Quit Retail”, showing their opposition to foreign retail like Wal-Mart.

Articles in Time, Business Week, as well as the important work of India FDI Watch have documented the growing unrest Indian small business owners and farmers are manifesting. Dharmendra Kumar, director of India FDI Watch, puts it this way:

“This is a do-or-die battle for us. Either they [the foreign retailers] go or the small traders and farmers perish” [Forbes, 10/10/07]

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MAJOR MEETING IN VIRGINIA TONIGHT TO DEBATE FATE OF THE WILDERNESS WAL-MART

• Public gets say on Wal-Mart near Va battlefield [Daily Press (Va.)]
  Hundreds of historians have had their say on Wal-Mart's plans to build a Supercenter near a Civil War battlefield in Virginia.

• Tonight! Orange County will hear your thoughts on Wal-Mart [Free Lance-Star (Va.)]
  Tonight, the Orange County Planning Commission will hold a public hearing on the proposed Wilderness Wal-Mart.
  

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REPUBLICAN APPOINTEES BLOCKED FEC CHARGES AGAINST WAL-MART

• Republicans Block Election Complaint against Wal-Mart [AllGov]
  Republican appointees to the Federal Election Commission found nothing illegal in the actions by Wal-Mart during last year’s election when the giant retailer was accused of pushing its employees to vote against Barack Obama and other Democrats.

• FEC Dismisses Wal-Mart Complaints [CQpolitics]
  The Federal Election Commission deadlocked on whether Wal-Mart violated campaign finance laws during the 2008 campaign. Because of the tie vote, complaints against the retailer were dismissed, documents released Thursday show.
  

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PRESIDENT OBAMA REAFFIRMS SUPPORT FOR EMPLOYEE FREE CHOICE

• Obama on his support of the Employee Free Choice Act [New Mexico Independent (N.M.)]
  President Obama said today at his town hall in Rio Rancho that he’d like to see the Employee Free Choice Act pass, but that compromise might need to happen on the details of the bill if it’s to pass the U.S. Senate.
  

• Live from Rio Rancho, it's President Obama [USA Today]
  A man asks about the "employee free choice act," which would help more unions form. Obama praises the contribution of unions to society, and worries about the decline in union membership. But he cites objections to the "free choice" act, including the fact that it does not assure secret balloting for formation of a union. Notes there aren't enough votes in the Senate to get the act passed, but says there may be room for compromise.
  

• Obama Says Union Bill Lacks Sufficient Senate Support [Wall Street Journal Blogs]
  Not surprisingly, unions praised the president’s remarks. “What a difference having a pro-working family president makes,” said Service Employees International Union President Andy Stern. “For hard-working families who suffered for eight long years under George Bush’s extreme antiworker policies, President Obama’s and Vice President Biden’s leadership on behalf of the middle class is a breath of long-needed fresh air.”
  

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Wal-Mart spokesman David Tovar on the company’s rationale for the home office layoffs yesterday:

“The changes are designed to align our staffing and organizational structure, to increase operational efficiencies, support our strategic growth plans and help reduce our overall costs.”

Apparently.

On the same day that Wal-Mart gutted its Bentonville workforce, the company announced it will seek to outsource up to $500 million of IT functions to India. How many more layoffs might that mean? While Wal-Mart might not be the only one sending U.S. jobs overseas, the timing of the move is pretty crass, even for Wal-Mart. Even decades-long salaried employees in Bentonville belonging to “core” business functions are no longer safe from the retailer’s cost-cutting ruthlessness.

As we said yesterday, we would have hoped that during these tough times, some of the obscene wealth amassed by Wal-Mart Executives and the Walton family could have been invested in the company’s workforce. Unfortunately, they decided to go another direction.

We’re curious, though, about something else that didn’t show up in any of the stories we read. Has anyone heard anything about which employees were laid off yesterday? Possibly more full-time workers to make way for part-time? We’ve long heard rumors that home office has been “reclassifying” workers and moving to more part-time employees. Cost-cutting, for sure - but possibly bracing themselves for a union drive if EFCA passes?

Wal-Mart mulls IT outsourcing [Economic Times (India)]:

WAL-Mart, the world’s biggest retailer, which until now has been dependent on its inhouse information technology division, is
evaluating a business process outsourcing (BPO) contract worth around $300- $500 million, as it seeks to outsource non-core processes of procurement, merchandising , finance, accounting and payroll.

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MANUAL INTRODUCTORIO SOBRE EL MENUDEO DE WAL-MART WATCH

“Todo alrededor del mundo, le ahorramos dinero a la gente, para que puedan vivir mejor. Esas son buenas noticias – en cualquier lenguaje.” – Wal-Mart Stores Inc.

La Expansión Internacional de Wal-Mart
A mayo del 2007, las 7,343 tiendas de Wal-Mart y establecimientos de Sam’s Club en 14 mercados emplean más de dos millones de Asociados a nivel global, sirviendo a más de 179 millones de clientes al año. Wal-Mart no es sólo una compañía más, sino el menudista más grande de los Estados Unidos y del mundo entero.

Desde el 2002, Wal-Mart ha encabezado la lista de las 500 principales compañías de EU de la revista Fortune, excepto en el 2006, cuando quedó en segundo lugar detrás de Exxon-Mobil “pero sólo debido a que el precio mundial del petróleo había subido en un 50 por ciento” ese año.  Los ingresos anuales de Wal-Mart en el 2008 fueron de $378 mil millones.

A lo largo del mundo entero, Wal-Mart explota personas y recursos para su propio beneficio. Esas son malas noticias – en cualquier lenguaje. Mientras Wal-Mart busca capitalizar su estrategia internacional, trabaja para construir nuevos imperios de menudeo en otros países, en particular en India y Rusia.

Este manual introductorio tiene el propósito de educar activistas de todo el mundo acerca de las estrategias de desarrollo de Wal-Mart y de su impacto en la cultura menudista local. Las tácticas principales usadas por la compañía antes de entrar a un país incluyen 1.) crear sociedades con organizaciones y empresas locales. 2.) trabajar con funcionarios gubernamentales y 3.) aprovechar el creciente poder adquisitivo de la clase media. Hemos escogido México e india como dos casos de estudio internacionales para remarcar lo que sucede antes y después de que Wal-Mart entra a un país.

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WAL-MART WATCH: ОБЗОР РОЗНИЧНОГО РЫНКА

«По всему миру мы экономим людям деньги, повышая их уровень жизни. Это хорошая новость, на каком бы языке она ни сообщалась». – Wal-Mart Stores Inc.

Международная экспансия Wal-Mart
В мае 2007 года в сети Wal-Mart, насчитывающей 7 343 магазинов и оптовых центров Sam’s Club в 14 странах, работало свыше двух миллионов сотрудников, которые обслуживали более 179 миллионов клиентов в год. Wal-Mart – это не просто компания, это крупнейшая розничная сеть в США и во всем мире.

Начиная с 2002 года, Wal-Mart возглавляла список 500 крупнейших компаний мира, ежегодно публикуемый журналом Fortune, за исключением 2006 года, когда первое место заняла компания Exxon-Mobil, «но только из-за двукратного повышения мировых цен на нефть», произошедшего в том году.  Годовой оборот Wal-Mart в 2008 году составил 378 млрд. долларов США.

По всему миру Wal-Mart эксплуатирует людей и ресурсы, получая от этого прибыль. Это плохая новость, на каком бы языке она ни сообщалась. Стремясь извлечь выгоду из своей международной стратегии, компания Wal-Mart работает над созданием новых розничных империй в других странах, а именно в Индии и России.

Цель настоящего обзора – рассказать активистам из разных стран мира о стратегиях развития розничной сети Wal-Mart и о том влиянии, которое эта компания оказывает на местные рынки. Три главных тактики, используемых компанией для выхода на новый рынок, включают в себя: 1) установление партнерских отношений с местными фирмами и организациями 2) работу с представителями государственных структур, и 3) использование покупательской способности формирующегося среднего класса. Мы рассмотрим последствия появления Wal-Mart на рынке на примере двух стран – Мексики и Индии.

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CARTILHA DOS VIGILANTES DO WAL-MART

“Em todo o mundo, fazemos com que as pessoas economizem dinheiro, para que elas possam viver melhor. Isso é bom – em qualquer idioma.” – Wal-Mart Stores Inc.

Expansão internacional do Wal-Mart
Em maio de 2007, as 7.343 lojas do Wal-Mart e as unidades do Sam’s Club em 14 mercados empregam mais de dois milhões de Associados em todo o mundo, servindo a mais de 179 consumidores por ano. O Wal-Mart não é só mais uma empresa, mas a maior rede de lojas a varejo dos Estados Unidos e do mundo.

Desde 2002, o Wal-Mart está no topo da lista Fortune 500 - exceto em 2006, quando ficou em segundo lugar, atrás da Exxon-Mobil, “mas apenas porque o preço mundial do petróleo subiu 50 por cento” naquele ano.  A receita anual do Wal-Mart em 2008 foi de US$ 378 bilhões.

Em todo o mundo, o Wal-Mart explora pessoas e recursos para obter lucro. Isso é mau – em qualquer idioma. Enquanto o Wal-Mart busca beneficiar-se de sua estratégia internacional, segue trabalhando na construção de novos impérios de lojas a varejo em outros países, mais especificamente na Índia e na Rússia.

Esta cartilha tem o propósito de informar aos ativistas ao redor do mundo sobre as estratégias de desenvolvimento de vendas a varejo do Wal-Mart, e o impacto da empresa nas culturas varejistas locais. As três principais táticas usadas pela empresa antes de entrar em um país são: 1.) construir parcerias com empresas e organizações locais; 2.) trabalhar com oficiais do governo e 3.) explorar o poder de compra da classe média emergente. Escolhemos os estudos de caso internacionais do México e da Índia para exemplificar o que acontece depois que o Wal-Mart entra em um país.

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वॉलमार्ट वॉच खुद्रा प्रवेशि‍का
“हम संसार भर के लोगों के पैसों की बचत करते हैं ताकि‍ उनका जीवन स्‍तर अच्‍छा हो सके. संसार के सभी भाषा-भाषि‍यों के लि‍ए यह एक अच्‍छी ख़बर है.” – वॉलमार्ट स्‍टोर्स इंकोरपोरेटि‍ड

वॉलमार्ट का अंतर्राष्‍ट्रीय वि‍स्‍तार
मई 2007 के आँकड़ों के मुताबि‍क, वॉलमार्ट के कुल 7,343 स्‍टोर हैं और 14 बाज़ारों में सैम्‍स क्‍लब स्‍थि‍त है. इनमें वि‍श्‍व भर के उसके 20 लाख सहयोगी कार्यरत हैं, जो हर साल 17 करोड़ 90 लाख से ज़्यादा ग्राहकों के लि‍ए काम करते हैं. वॉलमार्ट कोई ऐरी-गैरी कंपनी नहीं है. ये संयुक्‍त राज्‍य अमेरि‍का और संसार की सबसे बड़ी खुद्रा कंपनी है.

सन् 2002 से आज तक वॉलमार्ट फ़ॉर्चून 500 सूची में सबसे ऊपर रही है. सि‍र्फ़ सन् 2006 में ही वह इस सूची में दूसरे स्‍थान पर लुढ़की थी. उस समय पहले स्‍थान पर एक्‍सॉन-मोबि‍ल कंपनी का नाम आया था. “उस साल तेल की वि‍श्‍व कीमतों में 50 प्रति‍शत की बढ़ोतरी की वजह से ही यह संभव हुआ था.  सन् 2008 में वॉलमार्ट की सालाना आमदनी 3.78 खरब डॉलर थी.

वॉलमार्ट संसार भर के लोगों और अपने स्‍त्रोतों को अपने फ़ायदे के लि‍ए इस्‍तेमाल करती है. संसार के हरेक भाषा-भाषी के लि‍ए यह एक कटु सत्‍य है. जैसे- जैसे वॉलमार्ट अपनी अंतर्राष्‍ट्रीय नीति‍ पर और आगे बढ़ना चाह रही है, वैसे-वैसे वह अपने खुद्रा बाज़ार के साम्राज्‍य को भारत और रूस जैसे अन्‍य देशों में बढ़ाने की कोशि‍श कर रही है.

इस प्रवेशि‍का का उद्देश्‍य संसार भर में फैले कार्यकर्ताओं को वॉलमार्ट के खुद्रा वि‍कास रणनीति‍यों और स्‍थानीय खुद्रा संस्‍कारों में कंपनी के प्रभाव के बारे में शि‍क्षि‍त करना है. कि‍सी भी देश में प्रवेश करने से पहले यह कंपनी तीन काम करती है: 1) पहला, वो स्‍थानीय व्‍यापारि‍यों और संगठनों के साथ साझेदारि‍याँ कायम करती है, 2) दूसरा, वह सरकारी अफ़सरों के साथ काम करती है और 3) तीसरा काम, कि‍ वह उभरते हुए मध्‍य वर्ग की क्रय क्षमता में अपनी पैठ बना लेती है. वॉलमार्ट के कि‍सी देश में घुसने से पहले और बाद में, उस देश में क्‍या-क्‍या होता है, इसको प्रकाशि‍त करने के लि‍ए हमने एक अंतर्राष्‍ट्रीय केस अध्‍ययन करने के लि‍ए दो देशों को चुना है. वे देश हैं: मेक्‍सि‍को और भारत.

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沃尔玛观察网零售期刊

“我们为世界各地的人们省钱，因此他们能够生活得更好。 这是个好消息 – 无论以任何语言。” – Wal-Mart Stores Inc.

沃尔玛的国际扩张
截止 2007 年 6 月，沃尔玛在 14 个市场中的 7,343 家分店和山姆会员店地点雇用了来自世界各地的 200 多万名员工，每年服务于超过 1.79 亿个顾客。 沃尔玛并不仅是又一家公司，而是美国及全球最大的零售商。

自 2002 年起，沃尔玛就一直位于财富 500 强之首，除了 2006 年位居 Exxon-Mobil 之后排在第二位，“但这仅是由于世界油价在当年上涨了 50%”。 沃尔玛在 2008 年的年收入达 3780 亿美元。

沃尔玛充分利用全球的人力与资源，因此获益。 这是个坏消息 – 无论以任何语言。 就在沃尔玛试图利用其国际策略时，它正努力在其它国家/地区（即印度和俄罗斯）构建新的零售帝国。

该巨头计划培训世界各地的积极分子有关沃尔玛的零售发展战略以及公司对当地零售文化的影响。 在进入某个国家之前该公司采纳的三大战略包括 1.) 与当地企业和组织建立合作关系 2.) 与政府官员一起合作 3.) 激发新兴中产阶级的购买力。 我们已选择墨西哥和印度作为两大国际案例研究，以强调沃尔玛在进入某个国家前后所发生的事件。

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WAL-MART WATCH RETAIL PRIMER

“All around the world, we save people money, so they can live better. That’s good news – in any language.” – Wal-Mart Stores Inc.

Wal-Mart’s International Expansion
As of May 2007, Wal-Mart’s 7,343 stores and Sam’s Club locations in 14 markets employ more than two million Associates world wide, serving more than 179 million customers a year. Wal-Mart isn’t just another company but it is the largest retailer in the United States and in the world.

Since 2002, Wal-Mart has topped the Fortune 500 list, except for in 2006, when it trailed in second place behind Exxon-Mobil “but only because the world price of oil had risen 50 percent” in that year.  Wal-Mart’s annual revenue in 2008 was $378 billion.

All around the world, Wal-Mart exploits people and resources, so Wal-Mart can profit. That’s bad news – in any language. As Wal-Mart seeks to capitalize on its international strategy, it is working toward building new retail empires in other countries, namely India and Russia.

This primer is intended to educate activists around the world about Wal-Mart’s retail development strategies and the company’s impact on local retail culture. The three primary tactics used by the company prior to entering a country include 1.) building partnerships with local businesses and organizations 2.) working with government officials and 3.) tapping into the burgeoning middle class’s purchasing power. We have chosen Mexico and India as two international case studies to highlight what happens before and after Wal-Mart enters a country.

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Today, the Financial Times reported that Wal-Mart is expanding its overseas expansion. Well color me surprised! Currently, international sales constitute 26% of the company’s net sales and this is while Wal-Mart is lowering its capital expenditures. In layman’s terms, this means that they’re slowing growth- or rather, they are being forced to by the market. So in order to sustain the company, Wal-Mart is looking to conquer new markets abroad. Thankfully, Asia and Eastern Europe are still up for grabs! 

Wal-Mart readies for overseas expansion

Wal-Mart, the world’s largest retailer, is embarking on a further round of international expansion on the back of a systematic overhaul of the way it runs its business, which is expected to deliver more than $100bn in sales this year.

The retailer is actively exploring a first move into Russia and neighbouring countries, while preparing to open its first wholesale warehouse stores in India next year in a joint venture with Bharti Enterprises.

Wal-Mart already has operations in 13 countries, which accounted for 26 per cent of its net sales last year.

Wal-Mart’s international square footage growth rate is now above that in the US, where it has now slowed the expansion of its profitable Supercenter format in the face of market saturation.

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A Q&A session with the head of India FDI Watch, Dharmendra Kumar, about the successes of the campaign and the many obstacles they have faced along the way.

How did India FDI Watch first begin?

The India FDI Watch Campaign started in March of 2005 with the mission to prevent the opening of Foreign Direct Investment (FDI) in the retail sector in India. However, during the course of the past three years as large domestic corporations, like Reliance, have also entered the retail sector, the India FDI Watch Campaign has broadened its scope to address the rise of corporate retail in general. 

Specifically, the campaign seeks to prevent the insertion of multi-national retailers from entering the Indian market, and stunt the growth of domestic retailers, unless these companies make satisfactory guarantees that would protect communities; protect the environment; insure the livelihoods of existing small retailers, hawkers and farmers; guarantee fair wages and working conditions for their own employees and source employees along with union protection and agreements; and insure that a significant percentage of sourcing derives from the Indian market. 

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Just because something is legal or legitimate, does not mean that is right. The best example of this is Wal-Mart’s backdoor entry into India by virtue of its JV with Bharti Retail. For those who believe that Wal-Mart is solely interested in wholesale retail are completely oblivious to the company’s expansionist tendencies across the world. Contrary to their statement in this article, Wal-Mart is in a JV and pursuing cash-and-carry out of compulsion not choice. If Indian FDI laws were more flexible, Wal-Mart would set its sights to conquer the surging Indian retail market same as it did in Mexico or Central America. 
Let’s not kid ourselves: Wal-Mart is doing wholesale in India because they have to. And really, they probably won’t be doing much business with kirana owners like they claim they will. As the director of India FDI Watch said: “Here Wal-Mart is coming as a wholesaler, and Wal-Mart is only selling to Bharti.” There is nothing in it for the small vendors or farmers.

Cash-and-carry: the Wal-Mart way [India Business Law Journal]

Like it or not, Wal-Mart is coming to India. But the retail giant won’t be setting up the air-conditioned, consumer friendly superstores visible in so many other countries. Instead, in order to comply with Indian laws, Wal-Mart is establishing with Bharti Enterprises a business-to-business wholesale retailing company called Bharti Wal-Mart. The venture is a 50-50 joint venture between the two companies, though Indian law would have allowed Wal-Mart 100% FDI in such a back-end business.

“It is a joint venture out of choice, not compulsion,” a Wal-Mart spokesman tells India Business Law Journal. “We recognize the importance of having a local partner based on our excellent experiences working with partners around the world in places like Mexico, Central America and China.”

“Bharti is a great company,” the spokesman continues, “with a strong understanding of the market in India, and makes for a winning partnership.”

Wal-Mart sees the potential for its wholesale cashand-carry business in India as immense, and is eyeing the country’s 12 million neighbourhood shops – 90% of which the company says are not directly served by fast moving consumer goods companies – as its customers.

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Bharti Retail aims to consolidate presence in northern India [Economic Times]

Bharti Retail, a recent entrant in the organised retail market, on Tuesday said before launching pan-India operations, it will focus on Punjab and then move on to consolidate its position in northern India.

“Our focus right now is Punjab and we will first consolidate our presence in North India,” Bharti Retail President and CEO Vinod Sawhney told reporters on the sidelines of a CII organised retail conference.

The company has recently announced the launched of its first three food and grocery stores under the brand name ‘Easy Days’ in Ludhiana, Punjab.

Easy Day is a neighbourhood format store, which has been launched first. The company also plans to have bigger formats like compact medium and hypermarkets.

Asked when the other formats were expected to be rolled out, Sawhney said, the company was at present learning from the experiences of the new stores and was thus concentrating on smaller formats.

Easy Day stores offer a wide range of products ranging from items for daily usage such as personal care products to groceries such as processed foods, staples, bakery, dairy products, meat and poultry.

Sawhney said the company would also focus on private labels at the stores. “As somebody who is entering the retail market we will be looking at private labels also,” he said.

The company, which has a JV with Wal-Mart for cash-and- carry operations and a franchisee agreement for front-end retail, aims to spend USD 2.5 billion by 2015 for opening multiple format stores.

The company is expected to open its first cash-and-carry stores by the end of 2008.

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This is the third in a series of posts on Wal-Mart’s 2008 shareholder resolutions. The full list of resolutions - and Wal-Mart’s statements regarding them - can be found in the company’s 2008 proxy here (PDF).

Resolution #7 on this year’s proxy proposes the establishment of a human rights committee at Wal-Mart. Below, the details of the proposition, why Wal-Mart’s shareholders would benefit and how the company has reacted to the proposal.

Wal-Mart’s Public Image Problem
Reports of human rights violations have dogged Wal-Mart for years - particularly in the company’s supplier factories, most of which are overseas. These violations have thoroughly damaged Wal-Mart’s reputation, with everyone from U.S Senators to Wal-Mart employees to factory workers themselves speaking out about the inhumane conditions in Wal-Mart’s supplier factories. Bama Athreya, director of the International Labor Rights Forum, testified before Congress on the issue of toy safety, explaining that “Wal-Mart bears a lion share of responsibility for pushing the toy industry to a place where worker health and safety are basically nonexistent.”

Wal-Mart also holds the ignominious title of being the only company investigated by Human Rights Watch for its domestic labor practices. The group’s 2007 report labeled Wal-Mart’s union-busting policies a violation of basic human rights, saying:

It pursues its anti-union agenda relentlessly, often from the day a new worker is hired, devoting considerable time and resources at all levels of the company to the anti-union drumbeat.

The constant stream of allegations have damaged Wal-Mart’s reputation and in turn, its profits. In 2007, a Bank of America analyst’ report found that Wal-Mart’s profits had suffered as a result of organized labor’s opposition to the company and its unethical labor practices.  The report noted that the union’s campaign “has cost WMT [Wal-Mart] real estate sites in key locations, adversely impacted comp store sales to some degree, and has distracted m management from focusing on its retail strategy. Additionally, Lee Scott now spends a large amount of time improving WMT’s image domestically and abroad, and WMT has been forced to focus advertising dollars on defending their brand.”

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In this article from the Arkansas Democrat-Gazette, author Steve Painter makes the important correlation between Wal-Mart’s increasing international expansion and the company’s difficulty expanding in the U.S. Just last week the company lost a 2-year-long site fight on the south side of Chicago, a crucial city in the company’s urban expansion plans. Wal-Mart has met opposition to its international plans as well, including protests in India which have stymied the company’s plans there. Were all international markets aware of Wal-Mart’s business practices, we’re pretty sure the company’s expansion efforts abroad wouldn’t be going so well.

Foreign markets fertile for Wal-Mart [Arkansas Democrat-Gazette]

In Brazil, Wal-Mart Stores Inc. is counting on its small format Todo Dia neighborhood grocery stores to drive sales among low-income customers.

In Canada, Wal-Mart continues to add supercenters to its traditional base of discount stores, gaining market share.

In India, Wal-Mart partner Bharti Enterprises recently opened the first of its new Easy Day stores in a nation teeming with potential customers.

Deploying formats ranging from convenience store-sized markets to U.S.-sized supercenters, the world’s largest retailer is expanding its international operations at several times the rate of its stores in the United States, where it scaled back growth last year.

As Wal-Mart increasingly encounters opposition to its stores in U.S. cities it has yet to penetrate, it has mostly found open doors overseas, especially in developing economies where incomes are rising. In the past year, Wal-Mart’s international selling space grew 18 percent while U.S. space was up 4.6 percent.

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As Wal-Mart’s entry into India draws closer, rumors are surfacing that Bharti’s stores might not bear the Wal-Mart name after all. A technicality? Or a move by Bharti to avoid Wal-Mart’s bad reputation?

Bharti Retail could drop Wal-Mart tag [Financial Express]

New Delhi, Feb 20 The Wal-Mart brand may not come to India anytime soon. Bharti Retail, with which the US retail giant has tied up for its India entry, may not use the Walmart name for its front-end retail stores. Mike T Duke, vice chairman, Wal-Mart Stores Inc, dropped enough hints about it when he said: “three-fourths of our international business earnings are under 52 local brands across the globe. We want to be seen as local retailers serving the needs of the local people in an area.”

However, Rajan Bharti Mittal, managing director, Bharti Enterprises, said the final rollout plans of the retail and cash and carry stores would be made in April, and brand names for the retail and cash and carry stores would be announced then. Mittal did not confirm whether the stores would sport the Wal-Mart name.

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GAWKER/EDELMAN SMACKDOWN

First of all, we’d like to thank the fairy godmother who inspired Gawker’s bloggers to give birth to this headline.

Edelman Is A Soulless, Wal-Mart Shilling Firm That Shouldn’t Lecture About Ethics [Gawker]

You and your agency aren’t really the paragons of honesty and decency in communications that you present yourselves to be. You guys have run a political-style, multimillion-dollar campaign for years on behalf of Wal-Mart, one of the most objectionable companies in the world.

Paid liars. [The Writing on the Wal]

Reporters may understand that they’re going to be lied to on a regular basis, but do the people that shop there? If they do, why does Wal-Mart waste millions of dollars each year on Edelman? After all, they could always lie to the public just as easily and just as often for free.

Blog Wars: Gawker vs. Edelman [Adages]

It all started after Mr. Edelman personally responded to a post Mr. Nolan wrote that featured a marketing executive’s detailed account about a media training session he or she had with an Edelman employee wherein the Edelman employee flat out told the exec that: “Sometimes, you just have to stand up there and lie.”

Mr. Edelman demanded that the post be taken down immediately. Ummm ... fat chance of that happening.

The fact that Edelmen just launched a “transparency in communications” initiative: sadly ironic or poetic justice?

After the jump, Wal-Mart fights to stay afloat in Japan, and the company gets a very special valentine from citizens in California.

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