Wal-Mart admits increasing unpopularity as unions organise huge protests outside glitz-fest

[Omaha Steve]

http://business.guardian.co.uk/story/0,,2093636,00.html

'Some people would like us to be better, some would like us not to exist'


Wal-Mart admits increasing unpopularity as unions organise huge protests outside glitz-fest

Andrew Clark in Fayetteville, Arkansas
Saturday June 2, 2007
The Guardian

The embattled retailing empire Wal-Mart is scaling back its core American superstore openings by almost a third as it struggles with waning sales, fashion failures and vigorous protests about its treatment of low-wage workers.

More than 17,000 people flocked to the company's annual meeting at the Arkansas Razorbacks' football stadium yesterday for a glitzy day of corporate self-congratulation which featured The Eagles, Jennifer Lopez and American Idol winner Jordin Sparks.

With 1.8 million staff and annual sales of $345bn (£173bn), Wal-Mart is the world's biggest retailer. But besieged by scandals over executive ethics and by attacks from politicians, Wal-Mart's top management admitted that times were tough - and that the company's growth plan would need to slow.

Chief financial officer Tom Schoewe said that instead of the planned 265 to 270 new superstores this year, Wal-Mart would only open between 190 and 200. The future rate of expansion will slow to 170 stores annually.

Mr Schoewe, who arrived on stage in a white jumpsuit surrounded by gymnasts before peeling off his outer layer to reveal a shirt and tie, said the firm was "moderating the rate of growth just a little bit", though he insisted: "The business model is rock solid."

Wall Street analysts have expressed concern that America's largest company has been raising its capital expenditure by almost 20% annually over the last decade - but that its sales have grown by an average of 13.2%. The company's shares jumped 4.75% to $49.86 on yesterday's announcement.


FULL story at link.

[Tom Joad]

1. Wonder what side former WalMart Board member Hillary will be on?

What side are you on!