Slump Boosts Wal-Mart's Image and Bottom Line

[Omaha Steve]

http://www.nysun.com/business/slump-boosts-wal-marts-image-and-bottom-line/80271/

By LIZ PEEK
June 19, 2008

The president of Local 338 RWDSU/UFCW, John Durso, issued a press release yesterday applauding Attorney General Cuomo's outing of drugstores that are selling expired items. "This report proves that we shouldn't rely on drugstores to provide necessary food items to the community. ... There must be more supermarkets located in the city's low-income communities and New York City needs an effective strategy to add these quality food stores in more neighborhoods," he said.

Would that include Wal-Mart Stores Inc., Mr. Durso?

No, it would not. Despite an apparent resurgence in the popularity of Wal-Mart, union opposition to the chain is as intense as ever. And, in New York, it has so far proved fatal. Despite Wal-Mart's numerous attempts to open in the city, New Yorkers must venture outside the five boroughs if they want to shop at the country's biggest retail chain.

And, they do. The head of the Partnership for New York City, Kathryn Wylde, says the city's consumers "have made it clear that they want them here. The boroughs are under-retailed in comparison with the rest of the country; it's a demographic that really needs Wal-Mart."

Union leadership in New York and elsewhere opposes Wal-Mart mainly because the company does not employ organized labor. They maintain that not only does Wal-Mart pay below-average wages in the retail industry (a charge the company convincingly rebuts), but that it causes wages to drop in surrounding communities.

This message is broadcast as loud as ever by numerous Web sites, such as Wal-Mart Watch (funded by the SEIU), Wake Up Wal-Mart (funded by the United Food & Commercial Workers Union), and PurpleOcean (also funded by the SEIU), which spend millions of dollars each year hammering away at the company's reputation. They run ads decrying the company's health care policies, organize local opposition to new store openings, and promote Web logs alerting Americans that spending their rebate checks at Wal-Mart is tantamount to sending the tax money directly to China.

Of late, however, these messages are falling on deaf ears. Just as the anti-fur activists wane after the first frost, it turns out that shunning Wal-Mart in hard times is a luxury many Americans can't afford. Indeed, as Americans vote with their feet, Wal-Mart has consistently outperformed the broader retail sector of late. Same-store sales were up 3.9% in May, ahead of expectations, and also above an industry-wide gain of 3%. The company's stock has celebrated by climbing 20% in the past year, while the S&P 500 has fallen by 12%.

FULL story at link.

[Metta]

1. .. not convinced their image is improving. Conservatives have driven the people to lower standards.

Happy karma, conservatives.

[Vincardog]

2. Fuck the propaganda and Fuck Wallie mart

[DBoon]

3. Get a Costco into NYC

They are an alternative to Walmart for frugal shoppers, and are union as well