Wal-Mart to expand in China

Wal-Mart, the world's largest retailer, is looking to increase its present in China after agreeing to buy a 35% stake in discount store chain Trust-Mart. The terms of the deal were not made public, however it is thought that Wal-Mart will hold an interest in 100 stores in 34 Chinese cities, a business reputed to be worth $1bn. Should Wal-Mart ultimately buy out the group, it would make it China's largest foreign retailer in terms of stores. Foreign sales currently account for about 20% of the firm's turnover.

Based in Taiwan, Trust-Mart was set up in the mid-1990s and has more than 30,000 staff. Along with other leading global retailers like Carrefour and Tesco, Wal-Mart is looking to build its interests in China's fast-growing retail sector. The firm already operates 68 stores there and said last year that it was prepared to hire an extra 150,000 staff in the next five years.

As was reported by the BBC, Wal-Mart stated the latest deal was an "important step" for the business." Through this investment in Trust-Mart we have the opportunity to expand our presence in China, one of the world's fastest growing markets," said Michael Duke, Wal-Mart's vice-chairman.

Wal-Mart said the two companies would, for the time being, operate independently but that if "certain conditions" were met, it could buy out the remainder of the business by 2010. Wal-Mart's efforts to expand outside the US have not proved an unqualified success, raising questions about whether its retail formula can be replicated elsewhere. The firm pulled out of Germany and South Korea after struggling in those markets, while its Japanese subsidiary Seiyu has made heavy losses. China's retail sector was worth nearly $850bn in 2005 and is forecast to grow to more than $2 trillion by 2020.

www.walmart.com
27 February 2007

Wal-Mart sales up 11%

US retail giant Wal-Mart has reported a rise in overall sales of 11.7 percent to almost $345 billion (£176.32 billion). The results were strong despite the sale of Wal-Mart's loss-making businesses in Germany and South Korea , with Latin America and a new investment in its subsidiary in Japan offsetting the losses. Sales in the fourth quarter gained 10.9 percent to $98 billion, while income from continued operations rose 8.8 percent to $3.94 billion. Income for the year increased 6.7 percent to $12.2 billion.

The company's international sales represent 22.5 percent or $77 billion of the total. Wal-Mart president and chief executive Lee Scott said: “We are extremely pleased to close fiscal year 2007 with record sales and earnings. Even if you take into account the discontinued operations, we still had record results.” He said that the overall performance had been boosted by strong fourth quarter results, driven by the US stores division.

www.walmart.com
21 February 2007

Wal-Mart fashion drive tanks

US retail giant Wal-Mart's efforts to introduce more fashionable, higher-priced items have proved to be a big disappointment. The country's biggest retailer said same-store sales only increased by 1 percent. Comparable sales in November fell 0.1 percent for the first time since 1996. The company blamed the drop on problems with the home and clothing categories. Its fashion range, Metro 7, has not been well-received by core customers since its inception. “The home and apparel business is challenging and this will continue throughout the fourth quarter,” said Eduardo Castro-Wright, chief executive of the US store division. By focusing on attracting a new, more affluent clientele, Wal-Mart had been alienating its existing customers. To rectify this Castro-Wright said the company's pre-Christmas marketing strategy would concentrate on “communicating price leadership”. More price cuts would follow in the period leading up to the holidays.

www.walmart.com
1 December 2006

Wal-Mart gets Chinese Communist party branch

Wal-Mart, capitalist retailer for the masses, now has its own Communist Party branch. Earlier this month, Communist Party and Communist Youth League branches and a trade union were set up at a Wal-Mart outlet in the northeastern industrial city of Shenyang , confirming Chinese media reports, according to the Associated Press. A bastion of private business, Wal-Mart Stores Inc. has fought efforts to form unions elsewhere in its worldwide operations. But in recent weeks it said it agreed to work with the state-sanctioned labour federation to allow unions in its outlets in China , where it has 30,000 employees.

It is not clear exactly how the party branch would operate or whether it had an office in the Shenyang store. The All-China Federation of Trade Unions, reportedly at the behest of President Hu Jintao, has been campaigning for several years to set up party-controlled unions in Wal-Mart branches as well as other foreign-invested companies. Wal-Mart Stores Inc., which has 60 stores in 30 Chinese cities, resisted for two years before employees in the southeastern city of Quanzhou successfully voted to set up a union in late July. Shenyang Wal-Mart has only two party members and 16 Communist Youth League members out of its 389 employees, according to the official Xinhua News Agency. But the Xinhua report stressed that the branch's function would be to promote better business.

The party and youth league branches "will encourage members to play an exemplary role in doing a good job and that will be helpful to business development," it quoted Chen Lie, a Communist Party district leader in Shenyang , as saying. Chen said the groups would not interfere with management or operations of the retailer, which is based in Bentonville , Ark.

China does not allow independent labour organizations. Unions usually represent the workforce of a single company or outlet, rather than an industry, and they traditionally have been allied with management. The communist leadership has sought to preserve the party's influence in the business sector amid sweeping capitalist reforms and a huge influx of foreign capital and management.

www.wallmartstores.com
25 August 2006

Wal-Mart profits drop

The world's biggest retailer, Wal-Mart, yesterday suffered its first drop in profits for a decade and warned that high petrol prices were deterring shoppers from driving to out-of-town supermarkets.The American company, which owns Britain's Asda supermarkets, said its second-quarter earnings had fallen year-on-year by 26% to 1.1bn, largely due to an $863m write-off on its recent decision to exit from Germany. It was a rare setback for the company, ending a record of consecutive increases in profits from 1996. The shares fell by 1.5% during early trading on the New York Stock Exchange.Lee Scott, Wal-Mart's chief executive, said he believed the company’s American stores were suffering as the soaring price of fuel hit its lower income customers.

"We are, quite honestly, disappointed with the sales performance of Wal-Mart USA," said Mr Scott in a conference call. "Some of the same issues affecting customers - high utility costs and gas prices - are affecting many businesses including Wal-Mart."Wal-Mart's like-for-like sales in the US edged up by 1.7% in the three months to July, compared with growth of 3.8% in the preceding quarter. The Arkansas-based company said its customers were spending more when they visited its stores but were tending to consolidate their shopping by cutting back on "top-up" visits.

Wal-Mart is closely watched as an indicator of trends in retailing. A second large American shopping chain, Home Depot, also struck a cautious note yesterday warning that its sales were likely to slow in the second half of the year due to "mixed economic signals".Early indications of a slowdown in the American economy prompted the Federal Reserve to hold interest rates last week. Neil Curry, a retail analyst at merchant bank UBS, said Wal-Mart's sales growth was looking "rather modest". He said the company was particularly vulnerable to the high petrol price because of its thrifty customer base: "Given Wal-Mart's lower income demographic, it's going to hit them more than most."

In Britain, Wal-Mart also revealed that profits at Asda were "moderately below plan", blaming declining profit margins on the competitive environment. Asda's position as the country's second-biggest grocer has come under pressure in recent months from a resurgent performance by Sainsbury's.

Wal-Mart does not break out financial details of Asda's performance but it did reveal that overall sales outside America were up 31% to $18.6bn, boosted by purchases in Brazil, Central America and Japan. Asda has opened seven new stores so far this year and Wal-Mart said the chain got a boost during the World Cup from strong sales of food and clothing tie-ins. Asda accounts for more than 40% of Wal-Mart's international sales.

www.walmart.com
16 August 2006

Al Gore to bring eco vision to Wal-Mart

Al Gore, the former US vice-president turned eco-warrior, is taking his climate change soapbox to Bentonville, Arkansas, to preach to the executives and employees at Wal-Mart.
The retailer has invited Mr Gore to be the star turn at its quarterly "sustainability conference" this week, where he will deliver a version of his lecture warning of impending environmental disaster.

Wal-Mart, which owns Asda in the UK, is routinely traduced for its impact on local communities and for poor treatment of its workers. But it is making a concerted effort to improve its image in the area of environmental sustainability.
The day-long conference at the company's headquarters on Wednesday is expected to be attended by more than 2,000 employees, or associates, as Wal-Mart calls them. Lee Scott, the company's chief executive, will be among them.
Delegates will hear reports on efforts across the company to reduce its impact on the environment. Wal-Mart has promised in recent months to decrease the amount of energy it uses at the same time as it increases its range of products manufactured from sustainable sources.

In many areas, a green policy is making strong business sense, particularly because of the rising cost of fuel and other energy bills. Wal-Mart has saved money by kitting out its fleet of US delivery trucks with power units that reduce by 90 per cent the amount of fuel used when they are idling. And it is switching its distribution centres to energy-saving light bulbs, which come on only when there is activity in the area.

9 July 2006

Fendi sues Walmart

Fendi is suing Walmart, claiming the retail giant's subsidiary, Sam's Club, is selling counterfeit Fendi products at a discount. A claim, filed with a New York court, alleges that Sam's Club is selling 12 counterfeit handbags and small leather goods as genuine Fendi products. Furthermore, it states that these products are being sold at discounts as great as 68 percent off regular Fendi prices. The Italian luxury brand is seeking an injunction and damages for trademark counterfeiting, false designation of origin and trademark dilution. It states that Walmart never purchased the articles from Fendi or one of its affiliates.

Walmart contests the claim. “The company is absolutely going to fight this,” a company spokeswoman told WWD. “We believe the complaint is without merit. We believe that we can demonstrate that the products we are selling were acquired properly and we'll be able to demonstrate that when the suit is heard. They are actual Fendi products. We believe that we can prove that they are not counterfeits. It's our policy not to sell counterfeit products.” Sam's Club did not remove the items from stores, as they were believed to be “authentic”.

According to WWD, Fendi will probably try to obtain a preliminary injunction, should Walmart ignore the complaint. The company could not be reached for comment.

www.walmart.com
www.fendi.com
13 June 2006

Wal-Mart expands fashion line

Retail giant Wal-Mart is planning to develop additional fashion products for the customers of its Metro 7 fashion line. Stephen Quinn, senior vice president of marketing told of the company's plans at a Bear Stearns retail conference. He called the Metro 7 launch a “very important experiment to offer fashion-forward merchandise” and said of customers: “We found that if you make the fashion apparel available to them, they will buy it.”

The Metro 7 line will be expanded with new product categories such as shoes and jewellery. Its apparel line will be upgraded with the introduction of organic clothing. Wal-Mart is also developing new marketing ideas, including movie and television initiatives.

“Later this spring, we believe the company will announce additional initiatives in its fashion offerings,” said Bear Stearns retail analyst Christine Augustine. “In men's, we believe the company could announce a designer line, perhaps even a collection by Tommy Hilfiger.” Augustine said that the retailer has been testing the line of urban apparel in one of its stores in Chicago and added that this had been a successful endeavour.

Wal-Mart is not complacent about its position in fashion. With a 40 to 50 percent share of all US basic apparel sales, the retailer is striving for an even larger share and better quality of its merchandise. A Wal-Mart spokeswoman told WWD that the company is looking to source more high end fabrics like silk and cashmere. “We have a ton of cashmere,” she said.

Wal-Mart customers appear to be increasingly refined shoppers, demanding organic products. In response, the retailer is introducing organic food and apparel. It will even launch organic cotton baby clothes by George in June.

“We actually purchased an entire farm crop of organic cotton,” said Quinn and added that the company will be “expanding beyond baby clothes into other organic apparel.” The retailer is using a new marketing campaign called “Beyond the Basics” to target “selective” and even “sceptic” shoppers who only buy consumables. This campaign will help them to find upgraded products throughout the store.

Over the next 18 months Wal-Mart will be upgrading 1,800 stores with small-scale remodelling. It will begin the initiative in the New York metropolitan area with the reworking of electronics, apparel, home departments and bathrooms. Quinn said the remodelled stores would have a graphic look and feel to them. He also said that the company website is being redesigned to make it more attractive and functional.

www.walmart.com
13 March 2006

Wal-Mart launches World Cup campaign

The world's largest retailer Wal-Mart yesterday said it was to launch a Spanish language US marketing campaign related to this summer's World Cup football. This is the first time Wal-Mart has ever made use of a major sporting event for marketing purposes.

During a conference call with investors Stephen Quinn, senior vice-president for marketing, compared the World Cup with “six weeks of Superbowl” for Hispanic customers. “We intend to fully take advantage of the fact that there is a massive passion for soccer among those customers,” he said.

Wal-Mart is also increasingly focusing its marketing activities on specific demographic and ethnic groups, as is demonstrated by this campaign. “We are very aware of the fact that the population is changing overall…and that the non-white population is now 30 percent of all America and its growing faster than the average overall,” said Quinn.

Under leadership of John Fleming, Wal-Mart has updated its marketing strategy with more targeted marketing and development of its brand image, reports the FT. Later this year, the retailer will also launch its first marketing campaign linked to an animated movie, Over the Hedge by DreamWorks.

www.walmart.com
9 March 2006

Wal-Mart beats Q4 estimates

Wal-Mart has reported higher than expected fourth quarter estimates, although its profit forecast for the first quarter and fiscal year 2007 were below analysts' estimates. Net income for the fourth quarter rose 13 percent to $3.59 billion (£2.06 billion) from $3.16 billion during the same period the year before. Revenues climbed 8.7 percent to $90.13 billion, including a retail sales gain of 8.6 percent to $89.27 billion. Same-store sales rose 3.1 percent.

For the full year, net income rose 9.4 percent to $11.23 billion, up from $10.27 billion a year ago. The company saw revenue gains of 9.6 percent to $315.65 billion from $288.13 billion the year before, including a sales rise of 9.5 percent to $312.43 billion. Year-on-year the world's largest retailer realised sales gains of 9.6 percent or $27.5 billion. According to WWD, this amount is equal to the annual sales of Best Buy and far higher than Federated Department store's annual sales of $22 billion. Meanwhile, its biggest competitor Target has annual sales of $46.8 billion.

The company's forecast for the first quarter of fiscal 2007 fell below analysts' expectations. President and chief executive, H. Lee Scott, said in a discussion with Wall Street analysts that utility costs caused expenses as a percentage of sales to be up for the quarter. “We continue to see higher gasoline and utility prices affecting our opening price point customers,” he said. “We are committed to maintaining our every day low price strategy so we can continue meeting the needs of these loyal customers.”

Scott said that Wal-Mart aimed to grow sales by offering merchandise that will appeal to customers. “We want our merchandise to appeal to a broad range of customers who are already shopping in our stores,” he said. “We want customers to shop Wal-Mart for all their needs from consumables to Metro 7 apparel and accessories.” Apparel line Metro 7 enjoyed a particularly strong performance and will expand to 1,600 stores by September of this year. Furthermore, the existing offer will be upgraded with the remodelling of 1,800 stores within the next 18 months.

Meanwhile, international sales increased 9.6 percent to $18.4 billion, but missed expectations because of weaker sales in the UK . British subsidiary, supermarket Asda saw sales growth “in the low single digits”. The retailer was optimistic about the coming year though. “I think the next year is going to be very important for Asda,” said Wal-Mart's chief financial officer Tom Schoewe. “During the course of this last year, they did a nice job with their restructuring and getting their costs back in line.” The strongest international results were gained in Brazil , China , Argentina and Mexico .

www.walmart.com
22 February 2006

Wal-Mart profit may rise on discounts

Wal-Mart will be reporting its fourth quarter results on Tuesday and may reveal a 10 percent profit rise for the quarter as discounts and advertising campaigns during the Christmas season spurred on sales of electronics, clothing and gift cards. Adrianne Shapira, an analyst at Goldman Sachs, believes net income probably rose $3.5 billion (£2.0 billion) on revenues that likely climbed 10 percent to $91.3 billion.

Comparable store sales rose 4.3 percent in November due to discounts on plasma televisions and DVD players and the earliest-ever start of holiday ad campaigns. However, sales slowed to 2.2 percent in December, the smallest gain in five years. Comparable sales for the fiscal year rose 3.6 percent. Target, the world's second largest discount retailer after Wal-Mart, saw its comparable sales rise 5.6 percent.

Wal-Mart's introduction of Metro 7 Apparel, its line for women, has attracted more upscale customers to its stores, as was chief executive H. Scott Lee's intention, as he believes they are integral to the group's future growth. Metro 7 is carried in 500 Wal-Mart stores and the company plans to add another 1,000 stores by September, said vice chairman John Menzer. He added that in April the line will be expanded to include shoes and accessories. The clothing line appears to be doing so well that Wal-Mart was having difficulties supplying existing stores, Menzer continued.

www.walmart.com
20 February 2006

Wal-Mart ordered to compensate staff

Global retailer Wal-Mart has been ordered to pay $172m (£99m) to compensate workers who were refused lunch breaks.
A California court found Wal-Mart broke a law requiring employers to give staff an unpaid 30-minute lunch break if they worked more than six hours. The ruling means that more than 100,000 Wal-Mart employees in California will be eligible for compensation.

The company said in a statement that it would appeal against the decision.The statement also said "Wal-Mart has acknowledged it had compliance issues when the statute became effective in 2001. The problems were also experienced by other employers in the State of California.

Wal-Mart has since taken steps to ensure all associate receive their meal periods, including adopting new technology that sends alerts to cashiers when it is time for their meal breaks. The system will automatically shut down registers if the cashier does not respond. During the trial, a California court of appeals made a ruling in another case (Murphy v. Kenneth Cole) that directly supports Wal-Mart's position that the meal-period premiums in question are penalties, rather than wages. This means that punitive damages cannot be recovered in this case.

In short, California law prohibits penalties on top of penalties".

Wal-Mart cuts costs at Seiyu

US retail giant Wal-Mart is to speed up integration of subsidiary Seiyu into its global operations as it works to decrease costs at the flailing Japanese retailer.

Mike Duke, the new head of Wal-Mart's international division, said that Wal-Mart would source an increased percentage of items supplied to the Japanese market using its global procurement operations. “There may be even greater opportunities where Wal-Mart has purchasing abilities and very good relationships with multinational suppliers,” he told the FT.

The integration of Seiyu stores into the company's global data network should also ensure a reduction in costs.
Seiyu shareholders have approved a plan for the retailer to fully become part of Wal-Mart. Ed Kolodzieski will be the new chief executive, after working as COO of Wal-Mart's international division.

www.walmart.com
22 December 2005

Wal-Mart anticipates profit

The US-based retail giant Wal-Mart is expecting to generate a sales growth of 2 to 4 percent in December, in line with earlier prognoses made by the retailer.

In recent times Wal-Mart has invested a great deal in advertising and has rigorously reduced its prices, in order to attract more customers during the holiday season. Last year the retailer was criticized for having reduced prices too late in the season. This was supposed to have kept the shoppers at bay. This year Wal-Mart has therefore decided to handle things differently. And apparently, the new system is working. In November, the retailer generated sales growth of 4,3 percent.

www.walmart.com
5 December 2005

Wal-Mart exec to be CEO of Seiyu

Wal-Mart COO Ed Kolodzieski is to become Seiyu's first foreign chief executive, according to a report by the FT. The senior executive in charge of Wal-Mart's international operations will become president and chief executive of the loss-making Japanese subsidiary from 15 December this year, in an effort to reinforce managerial control at Seiyu. In his new role, Kolodzieski will work together with Seiyu chairman, Noriyuki Watanabe. In addition to Kolodzieski's appointment, the Seiyu boards will be subject to a reshuffle in December, when Wal-Mart executives will make up the majority of the board with six of the 11 seats.

Wal-Mart made the announcement as it finalized a rescue package for Seiyu. It will inject Y67.5 billion (£325 million) into the Japanese retailer, thereby increasing its stake to 54 percent and making Seiyu a wholly-owned subsidiary. The Mizuho Corporate Bank will also inject Y47.5 million by purchasing preferred shares. On Wednesday Seiyu almost doubled its net loss forecast for this year, underscoring the difficulties that Wal-Mart will face in Japan . This will be Seiyu's fourth consecutive loss-making year. The two companies have agreed on a five-year restructuring programme, which will hopefully return the Japanese retailer to profitability.

Japan , the world's second biggest retail market, has proved tricky not only for Wal-Mart but also for France 's supermarket chain Carrefour, and British health and beauty retailer, Boots, which withdrew its operations from the country. Wal-Mart is trying to encourage Japanese shoppers to buy more than groceries at Seiyu. “We want customers to see Seiyu beyond just the food assortment and see our general merchandise and apparel,” Jeff McAllister, who is in charge of Wal-Mart's Japan operations, told the FT. “This means continually improving our general merchandise assortment.” Currently, food accounts for almost 60 percent of total sales, but has a far lower profit margin than general merchandise and apparel.

www.wal-mart.com
3 November 2005

Wal-Mart to open 15 new stores in China

Wal-Mart will open 15 new stores in China this year, amongst which two supercentres in Beijing and Shanghai . The US retail giant has been active in China since 1994, although its start there was not always easy. The turning point came last December, when the Chinese government - which then joined the WTO - was obligated to allow foreign retailers to invest in cities of their choice.

In spite of this, there are still enough obstacles for foreign retailers to tackle. It is difficult to find qualified managers and new locations due to heavy (local) competition. Wal-Mart has, however, succeeded in finding out what Chinese consumers want: small portions, noise, freshly-prepared lunches, live frogs and retailtainment.

www.walmart.com
25 October 2005

Wal-Mart positive about RFID

US retailer Wal-Mart announced that over a quarter of its US stores would be able to work with radio-frequency identification (RFID) tags within the next 18 months.
Another 200 of its top US suppliers are expected to be using the tags by January 2006, while another 300 suppliers are expected to have adopted the system by January 2007. Currently, 100 of the company's suppliers are already using the system, despite initial resistance.

Wal-Mart hereby reaffirms its commitment to the new technology. To emphasize its belief in the system, it also released details of a study made in its stores by the University of Arkansas that showed that the use of RFID tags was likely to increase suppliers' sales.

The study – the first of its kind - was conducted in 24 Wal-Mart stores, of which half used RFID. It found that the use of RFID tags significantly decreased “out of stocks” and excess inventory.
According to Linda Dillman, Wal-Mart's chief information officer, the study revealed that RFID “is no longer a take-it-on-faith initiative” and that it proved that the tags “increase how often we put products in the hands of customers who want to buy them.”
The study showed that RFID-enabled stores were 63 percent more effective in the refilling of out-of-stock items than traditional stores. With the system, sales at the cash register automatically communicate to the stockrooms to move goods out and to re-order products as they are sold.

According to the results of the study, products that are RFID tagged are three times less likely to be out of stock than those that are not at the same store. It also means that manual orders from the stores to the distribution centres were reduced by 10 percent.
“Essentially, this meant fewer total out-of-stock items and fewer occurrences of empty shelves when the merchandise was in the backroom,” said the head of the university's RFID research centre, Bill Hardgrave.

www.walmart.com
18 October 2005

Wal-Mart launches new clothing brand

US discount retail conglomerate Wal-Mart is on the fashion offensive with spreads in high fashion magazines, a fashion show during New York Fashion Week, and now the launch of Metro 7. The new brand is geared towards the “fashion-savvy” female customer with an urban lifestyle.

The development of Metro 7 signifies a departure from the norm for the retail giant. While always having focused on ultimately low prices, Wal-Mart began listening to its customers in developing the new brand. Karen Stuckey, who is responsible for apparel product development, told the FT that the Metro 7 brand evolved out of a study of 6,000 existing Wal-Mart customers. She said that results indicated that a significant number of Wal-Mart shoppers wanted more from the store. They were “desirous of a much more fashion-forward, contemporary style…and we were not providing that.”

The brand will now be sold in 500 urban Wal-Mart stores and through the company's website. The collection will be refreshed on a monthly basis, keeping up with the trends through a “trend office” based in New York.

With the launch of Metro 7, Wal-Mart is trying to boost slow sales in its existing stores by focusing on items with higher profit margins, like home furnishings, electronics and fashion. And for the first time ever, it is using customer research to develop products.

“They buy soap, they're buying consumables, or they buy other basic products where the deciding factor is price,” head of marketing for Wal-Mart US, John Fleming, told the FT. “And yet we haven't always had the assortment that meets their needs in areas like apparel, home and electronics. So our strategy is to use consumer research and insights to better understand their needs, and to develop assortments where we have an opportunity to meet these needs.”

Fleming formerly worked for rival Target for 19 years. The smaller discount retailer regularly uses customer research. It has also polished its image to become America's more “upmarket” discount retailer, with modern marketing techniques and collaborations with well-known designers. Since Fleming took over as head of marketing for Wal-Mart US in April of this year, the company's advertising style had begun to resemble Target's more. However, Fleming stresses that Target and Wal-Mart are not the same company. Customers will come to Wal-Mart to change their tyres, buy new glasses or get their pictures developed.

www.walmart.com
10 October 2005

Wal-Mart sued by fashion chain

US retail giant Wal-Mart is being sued by American women's clothing chain Anthropologie, according to a report by the FT. The chain alleges that Wal-Mart has used fabrics developed by Anthropologie to produce “confusingly similar” garments. Anthropologie is a brand owned by Urban Outfitters and has more than 65 stores across the US. It is known for its bohemian chic clothing catering to “sophisticated and contemporary women aged 30 to 45”.

The retailer has filed a claim in a New York court of law stating that Wal-Mart “has embarked upon a conscious strategy of copying the designs of others” in its efforts to build its “cheap chic” line. It mentioned Wal-Mart's decision to open a “trend office” in New York's Garment District, to keep abreast of developments in fashion.

The complaint further states: “Plaintiffs have recently become aware of Wal-Mart's advertising and sale of skirts that feature patterns, fabrics, colour schemes and designs that are identical, virtually identical, or highly similar to Anthropologie's own garments.” One of the items that Anthropologie has complained about is an a-line, floral prints skirt sold under Wal-Mart's George brand. On Wal-Mart's site, the skirt retails for $16,92, while Anthropologie's version costs over $100.

“In the garment industry, knockoffs are pretty commonplace, and it's not very common to sue someone in connection with a knockoff, for the simple reason that the publicity that attaches to the case is like to be favourable to the company doing the knockoff,” Kurt Barnard, president of Barnard Retail Consulting, told the FT.

In 1994, Yves Saint Laurent famously won a case against Ralph Lauren in a French court over the cut of an evening dress. Earlier this year, French luxury brand Chloe sued high street chain Kookai over the alleged copying of one of its bags.

www.walmart.com
5 October 2005

Wal-Mart management appointments

US-based retail giant Wal-Mart has announced a number of senior appointments in its efforts to breathe life into its listless US operations while forging ahead with international growth. John Menzer and Mike Duke were appointed vice chairman to Lee Scott's chief executive position. Duke – who has been in charge of Wal-Mart's US discount division - will take over Wal-Mart International, while Menzer, a former CFO, will take responsibility for the company's US operations. Meanwhile, Eduardo Castro-Wright has been named the new chief executive of the Wal-Mart USA store division. He previously headed up Wal-Mart's Mexican subsidiary.

Chairman of the board, Rob Walton, said the management changes “represent an opportunity to boost our performance and help us become a more diverse and global enterprise.” The company also announced that Jim Walton, son of late founder Sam Walton, would join the board of directors, taking the place of his brother John, who was killed earlier this year.

www.walmart.com
4 October 2005

Wal-Mart in bid for Hilfiger

The world's biggest retailer, Wal-Mart, could be the new owner of Tommy Hilfiger Corp if all goes well. According to a report by WWD, Wal-Mart is believed to have initiated the idea and could be starting due diligence analysis on the company by the end of this week.

Although spokespeople for both parties declined to comment and the bankers could not be reached, JP Morgan Chase & Co and Goldman Sachs have apparently been shopping around quietly for buyers for Tommy Hilfiger Corp. Potential buyers that were contacted are thought to include private equity firm Apax Partners and retailers such as Jones Apparel Group Inc, Perry Ellis International Inc, and Liz Claiborne Inc. However, Jones, Perry Ellis and Claiborne are said to no longer be in the running.

According to financial sources the asking price for Hilfiger is at least $1.82 billion (£1.03 billion), possibly going as high as $2.16 billion. The deal could be signed before the end of November, with a rush behind the proceedings while the valuations are still applicable, one anonymous source told WWD.

“Selling Tommy at Wal-Mart and exiting the department store channel would be a tremendous boom for apparel firms,” an apparel executive with inside information told WWD. “Between Tommy Hilfiger and George, Tommy would be the winning card.” George, a label that was launched in the UK, apparently took longer to catch on in the US. Meanwhile, Tommy could be used in other categories at Wal-Mart, such as home goods, said another apparel executive.

The acquisition of Hilfiger by Wal-Mart is believed to fit the group's strategy. CEO H. Lee Scott has said that the company can offer varying price points, from entry level to more upscale. Adding Hilfiger to the stable would increase Wal-Mart's fashion percentage, thereby allowing it to better compete with main rival Target Corp, which offers affordable lines by designers Cynthia Rowley, Rachel Ashwell and Michael Graves.

According to brand consultant and chairman of Siegel & Gale, Alan Siegel, the inclusion of designer brands is the “single most important move Target has made to add retailing excitement to (its) image”. It has allowed the company to expand its client base to include those who are also interested in fashion. The acquisition of Hilfiger by Wal-Mart could produce the same results.

www.tommy.com
www.walmart.com
26 September 2005

Wal-Mart donates $1 million for Katrina relief

US retail giant Wal-Mart has announced a donation of $1 million to the Salvation Army to provide early relief for victims of hurricane Katrina. The Salvation Army is currently preparing to serve 400,000 meals a day to victims. Wal-Mart is stimulating the public to donate emergency relief efforts through its 3,800 stores, CLUBS and via five different websites. The Wal-Mart Emergency Operations Team had already been sending out emergency supplies before Katrina hit the Gulf Coast . Wal-Mart trucks were also sent to help the community and move supplies.

“We are looking at a massive support and clean-up effort due to this storm,” said Major Dalton Cunningham, Salvation Army Commander for the states of Alabama , Louisiana and Mississippi . “We are appreciative of corporate leaders like Wal-Mart who continue to come through to help our communities in such times of need.”

www.walmartstores.com
30 August 2005

Wal-Mart heir dies in plane crash

John Walton, the second son of Wal-Mart Stores Inc. founder Sam Walton and Wal-Mart board member, died on Monday in a plane crash, aged 58. The billionaire was piloting the small plane near his home in Wyoming when it crashed shortly after take-off.

Walton was an experienced pilot and a former Special Missions operative in Vietnam. He lived in Jackson Hole, Wyoming. At the time of his death he was flying a 400-500 pound homemade plane with an aluminium body, cloth-covered wings and a small engine, said Joan Anzelmo, a Grand Teton National Park spokeswoman.

Anzelmo said that the Federal Aviation Administration had declined to investigate the crash as it did not involve a registered aircraft. Instead, park rangers were looking into the incident. In a statement, Wal-Mart said that the cause of the crash has not yet been determined.

Walton ranked 11th on the Forbes magazine's most recent list of the world's richest people. His net worth was estimated at $18.2 billion. During the Vietnam War he was awarded a Silver Star for helping to save the lives of several unit memebers while under enemy fire. Walton was an enthusiastic philanthropist during his lifetime and pursued a variety of business interests. Most recently, he established the holding company True North, which was composed of businesses ranging from boat building to venture capital investments. From July 1983 to March 1994 he as the chairman of Corsair Marine Inc.

"This is a horrible tragedy. What is so unusual about this is it is the founder's son," Bill Dreher, a Wal-Mart analyst at Deutsche Bank told Reuters. "Sam Walton was brilliant with estate planning. I don't know all the details with John Walton, but I would expect there woud be a smooth transition." As a board member, Walton served on the board's strategic planning and finance committee. He and the rest of his family owned approximately 40 per cent of Wal-Mart shares through Walton Enterprises, LLC.

www.walmart.com
28 June 2005

New president Walmart.com

US retail giant Wal-Mart Stores Inc has announced the appointment of Carter Cast as president of Walmart.com. The 41-year old Cast will assume his new responsibilities from 5 July 2005.

He succeeds John Fleming, who was recently promoted to executive vice president/chief marketing officer of Wal-Mart. Cast will lead all the day-to-day operations of the company's online business. He will focus on expanding the site's merchandise assortment and product information and will develop services that integrate into Wal-Mart stores. He will report directly to John Fleming.

In a statement Fleming said: "We are extremely pleased to have Carter lead our fast-growing online business. Carter is an outstanding ecommerce and management talent who will help us further leverage the Wal-Mart brand and deepen our online commitment to customers."

Cast joined Walmart.com as vice president of marketing and site in 2000. In 2002 he was promoted to senior vice president of merchandising and marketing. He very much led the company through a period of extensive growth in site traffic and sales. He headed up the launch of Walmart.com's music download service and apparel business and managed the company's the firm's continuous expansion of categories including home furniture and electronics. His most recent role was as chief marketing officer at eBay.

"I'm very proud to have been part of the eBay culture, and to have worked with a committed, talented group of people," Cast said in a statement. "However, the opportunity to return as the new president of Walmart.com - the company I had a hand in building - was one I couldn't refuse. I'm very excited to rejoin Walmart.com in this new role."

www.walmart.com
20 June 2005

Wal-Mart improves image

In an effort ot improve its public image, the world's largest retailer, Wal-Mart, is to hold its first-ever meet-and-greet with the press at its headquarters in Bentonville, Arkansas. The company has been caught in the public's headlights and has receives a great deal of criticism due to its fast growth, market dominance and position as America's largest imployer.

It is battling a number of lawsuits alleging discrimination in the workplace and increased resistance to its attempts to enter urban communities. CEO Lee Scott said tha the company is open to "constructive criticism" but would like to take the opportunity ot clear up the company's reputation and its role in society.

www.walmart.com
5 April 2005

Walmart US to cut prices

Wal-Mart is rivalling the competition by signaling plans for a price cutting campaign to recapture its share of US sales in the run-up to Christmas. The world's biggest retailer resisted deep discounts over the Thanksgiving weekend, and lost ground to rivals who kicked off the holiday campaign with high profile promotions. Wal-Mart's share price slipped on Monday after it cut back its same store sales growth forecasts for November.

www.walmart.com
1 December 2004

Wal-Mart unions in China

Wal-Mart, the world's biggest retailer, has finally relented to pressure from the Chinese to allow its workers to set up a trade union. The US-based company bought $15 billion worth of goods from China last year and is expanding aggressively by adding stores in China. This decision underlines the importance of this market to the company.

The company has been under intense scrutiny concerning its labour practices, and this move might alleviate some of the pressure. A statement released by Wal-Mart read: "Should associates request formation of a union, Wal-Mart China would respect their wishes and honour its obligations under China's Trade Union Law." With the term associates Wal-Mart is referring to its employees. Last month China threatened to blacklist a number a foreign companies that did not comply with the setting up of trade unions in their Chinese units. Among the companies included in the list was Wal-Mart. Experts have indicated that this issue may have more to do with exercising the power of the state than with the welfare of the workers.

The trade federation is run by the state, which controls almost every union in the country. It counts 123 million members. In China, independent trade unions are illegal. However, the trade federation's power has been weakening as increasingly more workers join multinational firms or are fired due to reforms of state-owned companies. Companies from abroad, such as Wal-Mart, France's Carrefour SA, Metro AG from Germany and British retail giant Tesco Plc are all expanding their businesses in China, thanks to Beijing's more lenient rules governing foreign retail investment.

Wal-Mart claimed in its statement that it is now in full compliance with China's Trade Union Law, which states that establishing a union should be a voluntary act on the part of the associates. Wal-Mart claimed that it has only now allowed a trade union, because there had been no earlier requests for one.

www.walmart.com
23 November 2004

Wal-Mart To Improve Image

Value retailer Wal-Mart is to give itself an image makeover with a concerted campaign to improve its standing with the US public. The world's biggest retailer has increasingly been facing a bout of negative press. Wal-Mart chief executive Lee Scott has acknowledged that the retailer has failed in its efforts to restore its reputation with the US public. The company has faced a series of legal actions and press reports alleging discrimination against its employees, often blaming local managers.

Some US investment analysts believe the bad publicity is one of the biggest obstacles to Wal-Mart's expansion plans. As it moves into new areas, the retailer has been met with increasingly vocal and well-organised protest campaigns from protesters. Scott said the company has started to implement a culture change which will hold employees to a higher standard of accountability for transgressions.

www.walmart.com
9 September 2004

Lower Sales Forecasts For Walmart

Wal-mart is expecting third quarter earnings to be at the low end of forecasts after August sales disappointed. The world's biggest retailer said that US same store sales in August grew by only 0.5 per cent, below the 2 to 4 per cent the company had forecast. Sales were lower after demand for back-to-school ranges fell short of forecasts.

As a result, its third-quarter forecast for same-store US sales growth has been reduced to 2 to 4 per cent from a previous forecast of 3 percent to 5 percent.

www.walmart.com
2 September 2004

Wal-Mart And Matalan Said To Be Close To Takeover

Senior Wal-Mart executives are said to have been in the UK over the past month and are understood be close to a final decision on whether to make a formal offer for discount retailer Matalan. Neither company has commented on the reported takeover. Matalan has been seen as a potential takeover target for more than a year. The UK value clothing market has become increasingly tough, with the strong growth of the George clothing range, sold by Wal-Mart owned Asda, causing problems for many rivals. Market share figures from TNS leaked earlier this month showed that Asda's clothing sales had overtaken those of Marks & Spencer.

Asda has announced plans for a trial of a non-food general merchandise format which will sell clothing, jewellery, homeware, toys and electricals. The first store opens in Walsall this autumn, and most of Matalan's 178 outlet would be suitable for this format. However, Wal-Mart would need new planning consents to sell food at any of the stores.

The key to any sale of Matalan is founder and 52 per cent shareholder John Hargreaves. Matalan currently has a market value of around GBP840m, but Hargreaves would almost certainly expect a premium for the business, hence the GBP 1bn level at which Wal-Mart is reported to be considering its bid.

Matalan is due to issue a pre-close trading statement later this week, In July, the company said it had reversed a like-for-like sales decline, with like-for-likes up by 4.1 per cent in the 18 weeks to July 3. Total volume growth across the 18 weeks was 12.4 per cent, but average selling price declined by 8.3 per cent, reflecting the level of competition in the market. Meanwhile, Wal-Mart has started to see a slowdown in comparable sales growth in its US stores, creating a new impetus for the retailer to increase its international expansion programme.

www.walmart.com
>> more Matalan on FashionUnited
30 August 2004

WalMart Online

Retail giant has re-introduced WalMart.com clothing sales after having discontinued them in 2001. It expects to overcome earlier weaknesses in its online clothing strategy with a stronger fulfilment network and a more comprehensive offering of clothes for men, women and children, the company says.

WalMart.com, No. 11 in Internet Retailer's Top 300 Guide to online retailers, is offering the same retail assortment as customers find in Wal-Mart stores, but will consider modifying the online offerings after gathering feedback from customers and analyzing their online shopping behaviour, a spokeswoman says. Its line includes three exclusive Wal-Mart brands: White Stag, Faded Glory denim and George, its fashion label. It also offers national brands including Rider and Wrangler denim, and mary-kateandashley for girl's wear.

WalMart.com included apparel when it launched in 2000, but dropped the category in April 2001 due to a combination of fulfilment costs and a limited number of product offerings available in the early days of the web site, the spokeswoman says. "We've used the time since then to better understand the apparel needs of customers," she adds.

www.walmart.com
22 July 2004

George Brand Offered At Wal-Mart

Wal-Mart has added clothing to its online offer, making brands including the George clothing range, available to US customers. The Walmart.com site is offering more than 15 apparel brands, including exclusive Wal-Mart brands George, Faded Glory, and White Stag, along with national brands including the mary-kateandashley brand targeted at teenage girls, Wrangler, and Rider.

The site provides fashionable and basic apparel for women, men, juniors, girls, and boys, including speciality sizes for men's big and tall, women's plus, and juniors' plus.

Jennifer Gosselin, Walmart.com's senior director of merchandising, said: "We're extremely excited to offer our customers the ability to shop for Wal-Mart apparel online, and provide another way for them to purchase and enjoy clothing.

"From trendy fashions by George and the mary-kateandashley brand to comfortable classics by trusted brands like Faded Glory and Wrangler, we offer something for everyone at Walmart.com - all at every day low prices."

www.walmart.com
21 July 2004

Wal-Mart Q2 earnings rise

Wal-Mart, the world's biggest retailer, on Wednesday reported a 21 per cent rise in second-quarter profit boosted by sales at its warehouse club chain "Sam's Club". For the quarter to July 31, profit rose to $2.44bn compared with $2.02bn the previous year.

Income from continuing operations at the Arkansas-based company increased by 14.7 per cent to $2.28bn meeting analyst expectations. Total sales for the second quarter rose to $62.6bn from $56.3bn last year.

www.walmart.com
August 13 2003

Aggressive expansion plans Wal-Mart

The successful American warehouse-chain Wal-Mart this week announced it plans to open approximately 45 to 55 new discount stores and 200 to 210 new Supercenters in the coming year. Relocations or expansions of existing discount stores will account for approximately 140 of the Supercenters, while the remainder will be built in new locations. The company plans to open 85 to 90 percent by the end of the third quarter.

Wal-Mart will further expand its Neighborhood Market concept by adding approximately 20 to 25 new units in the upcoming fiscal year.

Wal-Mart International plans to open 120 to 130 units in existing markets. The announced units include two restaurant formats, specialty apparel retail stores and supermarkets in Mexico.

As of August 31, 2002, the company had 1,603 Wal-Mart stores, 1,179 Supercenters, 517 so-called SAM'S CLUBS and 36 Neighborhood Markets in the United States.
Internationally, Wal-Mart operated units in Argentina (11), Brazil (22), Canada (199), China (20), Germany (96), Korea (12), Mexico (578), Puerto Rico (18) and United Kingdom (256).

www.walmart.com
10-02-02