Over at the Software Advice blog, they've got a post arguing that Walmart's recent move in to the e-Medical Records (EMR) business was a well intentioned, but strange move that ultimately won't reduce the overall costs of e-systems like the one Walmart is selling. Author Don Fornes argues that Walmart's intent is to, "simplify a traditionally complex and expensive purchase by distributing through a low-cost distribution channel." While we agree with Software Advice's general analysis of why this is an odd pairing, we disagree with Walmart's intent. We think Walmart's motives for jumping in to the e-Medical Records business can be summed up by two little letters: PR.

When this campaign first started, one of the biggest criticisms of Walmart was (and still is) that they didn't offer their employees adequate health insurance. Not only was their insurance hard to get and prohibitively expensive, many of Walmart's employees were paid so little that they qualified for state sponsored health care and were encouraged by their employer to go on such programs. By doing this, Walmart was passing on health care costs it should have been covering to you, the tax payer.

Walmart realized that they were getting bad press over this issue and set out to turn the tide using their expensive PR firms instead of making any real change. They released a "new" health insurance plan that made little difference to the average Walmart employee but sounded slightly better, talked about how great it was, and made sure the push it hard to the press.

Walmart selling e-Medical Record software is just the next phase of their PR program to ensure that when the average American thinks "Walmart" and "Health care" they think about what Walmart sells, and not about how Walmart is shirking their responsibility to its 1.4 million employees.

We think Software Advice's post backs up our point. They argue that EMR systems won't take advantage of Walmart's economy of scale advantage, and consumers will want an expert's help when buying a such a complicated system. Softwart Advice points out that this is not a natural fit for Walmart, and we agree. It wasn't some ill considered decision, or a quirky new product Walmart is trying, though, it is a PR move, pure and simple.

Down in Texas, Walmart has been sued for, allegedly, illegally detaining a customer and causing him physical injury. Michael Anthony Harris was thrown to the ground and handcuffed by a Walmart employee after they accused him of shoplifting. They refused to let him leave, even after he gave them his bag, but instead insisted he stay until the police came. When the police did arrive, Harris' injuries were so bad that they took him directly to a hospital.

Of you follow this blog, you'll know that this is certainly not the first time this has happened. Walmart, for reasons unknown, has recently become very harsh with anyone they even suspect of theft or shoplifting. There have been a few deaths from over zealous loss prevention officers, as well as several cases of serious injury from run ins with security guards.

Here's the article from the Southeast Texas Record:

Alleged shoplifter sues Wal-Mart over forceful detention

A Port Arthur man has filed suit against Wal-Mart, claiming he was injured when store employees accused him of shoplifting and used force to detain him.

Michael Anthony Harris claims he was shopping at the Wal-Mart located at 4999 Twin City Highway in Port Arthur on March 13 and paid at a register in the back portion of the store.

Harris alleges he was leaving the store through its front entrance, when he was confronted by four Wal-Mart employees, including defendant David Treml.

The employees accused Harris of having items in his bags for which he did not pay, according to the complaint filed March 25 in Jefferson County District Court. Harris claims he immediately handed the bags to the employees.

"Plaintiff said, 'Just take the bag and let me go,'" the suit states.

However, the employees would not let Harris leave the store until police arrived, the complaint says.

Harris alleges workers then threw him to the floor and placed him in handcuffs.

"Plaintiff's arms were violently jerked as one of the employees secured Plaintiff with handcuffs," the suit states. "Defendants had no legal authority or justification to detain plaintiff."

According to the complaint, Harris asked the employees to release him from the handcuffs because of his pain, but the employees refused to do so until the police arrived several moments later.

When a police officer arrived, Harris claims the officer recognized the severity of his injury and immediately transported Harris to the hospital. Harris states he was told he had a dislocated shoulder.

Because of the incident, Harris claims he incurred medical costs and experienced physical pain and suffering, physical impairment, disfigurement, mental anguish and fear of a future disease or illness.

The plaintiff alleges Wal-Mart and Treml committed acts of negligencee, false imprisonment, intentional infliction of emotional distress, assault and vicarious liability.

Harris is seeking unspecified exemplary damages, pre-judgment interest at the maximum rate allowed by law, post-judgment interest at the legal rate, costs and other relief the court deems just.

He will be represented by Langston Scott Adams of Port Arthur.

The case has been assigned to Judge Milton Shuffield, 136th District Court.

It seems today's theme is that Walmart is still expanding, whether in Latin America or, in this case, online. Adweek reports that R/GA has just won a bid to do online PR work for Walmart. The firms main responsibility will be "creating a digital marketing platform for Wal-Mart's 'Save money. Live better.' campaign." In addition, Advertising Age has an article about how Walmart is expanding its efforts to brand itself as a bargain retailer online. The article points to some of the new initiatives Walmart is taking, like free classified ads on its site, their ElevenMoms blogging network, and online music site.

Of course if you've been following Walmart for a few years, you'll remember such online PR failures as Wal-Marting across America (a fake blog, or flog), Working Families for Wal-Mart (a corporate backed PR site) and, more recently, Walmart's much hyped but rather disappointing 'Check Out' blog.

We'll reserve judgment about Walmart's online PR for the time being. If they do become a leader in corporate online PR, it'll only be because they've got enough money to pay the right people to do it. Our sense, though, is that Walmart is too large to successfully navigate social media, and does too much harm to communities to rely on public driven content that makes social media work.

Here's part of the article from Advertising Age:

How Walmart Owns the Concept of Value Online

There aren't too many places where Walmart isn't dominant. The digital realm is one of the relative few, but not for long, as it ramps up a host of programs to vault the chain -- which has already distanced itself from value retailers in the offline world -- further ahead in the online one.

What makes Walmart's efforts so interesting is its ability to "own" the concept of value online. It launched free classifieds last year, and its site, thanks to its blogger outreach and online message boards, is already crammed with content about saving money that will only grow as it builds out Save Money Live Better, a portal for penny-pinching strategies. In fact, amid all the talk of how digital has allowed marketers to be their own creators and distributors of brand content -- some people would call this a media company -- perhaps no one has the potential to be as big a juggernaut as Walmart.

Suppliers Procter & Gamble Co. and Unilever, who used to bring digital and other marketing programs to Walmart, are now vying to piggyback on programs such as its ElevenMoms network of mommy bloggers or its SoundCheck digital-music initiative. It recently launched the release of the "Twilight" DVD almost solely with digital media and public relations. It's taking free classifieds on Walmart.com. And with a network of employees closing in on 2 million globally, the world's largest retailer is creating a fairly substantial in-house social network all its own.

"Digital has such an amazing role in how to help people on an emotional, logical and rational level. We want to use it to our full potential to help our customers," said Wanda Young, senior director-digital marketing at Walmart. Nonetheless, Ms. Young, who only joined the company in October, said the chain still has a way to go. "We are really just getting started in digital in helping build up our brand."

As of mid-March, Walmart had yet to finish a review to name its first digital agency of record. And the digital manifestation of its 18-month-old ad campaign, "Save Money Live Better," remains a work in progress.

Yet with its major competitors in value retailing -- such as Costco and dollar stores -- largely absent from digital media, Walmart stands to grab a much larger share-of-mind digitally than even its dominant share of wallet in the offline world. In that, it has the support of some heavyweight marketers.

Last week Walmart announced it would close down an optical lab in central Ohio, laying off 650 people in the process. It's dire news, on its own, of course. With unemployment rates spiking across the country and the economy still struggling (except, it seems, for Walmart) the last thing any state needs is another closed store or factory or lab. This particular closing, however, is worse. It seems that the state of Ohio gave Walmart $1.8 million in tax credits to open this particular optical lab to create and maintain jobs in the state. Clearly, Walmart has not kept its end of the bargain.

Here's the article from the Associated Press:

Ohio to review if Wal-Mart reneged on tax deal

Economic development officials in Ohio say they will check whether Wal-Mart Stores Inc. violated terms of a tax agreement by closing an optical lab near Columbus.

Ohio gave the world's largest retailer a $1.8 million job-creation tax credit in 2001 on the condition that the company create and maintain jobs there.

Wal-Mart on Friday announced that it will close the lab, cutting 650 jobs. The lab makes eyewear for vision centers in Wal-Mart stores.

Kelly Schlissberg, a spokeswoman for the Ohio Department of Development, says the agency is reviewing its agreement with Wal-Mart to determine if the state can recoup money.

A message seeking comment was left Saturday for a Wal-Mart spokesman.

The Latin Business Chronicle is reporting that Walmart is looking to expand in to Latin America this year. Apparently Walmart has announced that it will open stores in Argentina, Brazil, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Chile and Puerto Rico. It looks like Walmart will begin setting up stores, or merging with existing stores to begin capturing pieces of the retail market in the countries, particularly the grocery market. According to the article, Walmart may also try to offer credit to its customers. Walmart hasn't been able to break in to the banking business here in the US, but it has started offering more banking services to customers in Mexico.

We wonder if Walmart will treat its Latin American employees any better than it treats its American associates. We also wonder what effect Walmart will have on these local economies. What do you think?

Here's the article from the Latin Business Chronicle:

Wal-Mart's Next Conquest: Latin America

Last May, Michael Bergdahl, former director of human resources at Wal-Mart, told the First Global Forum on Customer Service in Santiago, Chile, �Our strategy of low prices has become a competitive advantage for us. So long as our competition focuses on how much they can get for their products, we focus on how little we can get for ours.� According to Bergdahl, this strategy generated revenues of about $13 billion in 2007, and in 2008, �we open a new store each day, and each week, 176 million customers buy from our stores.�

This year, disruptions from the global financial crisis have forced retailers to discard their earnings forecasts and alter their plans for investment and expansion. Nevertheless, Wal-Mart has emerged unscathed, and has even continued to grow. In February, the company announced its results for 2008, during which it registered $13.4 billion in income -- an increase of 5.2 percent from 2007. That�s quite an achievement in times like these.

CONQUERING LATIN AMERICA

Taking advantage of its strong performance in Brazil and Mexico, Wal-Mart has now undertaken the massive task of conquering the rest of Latin America. The company announced that this year, it will open stores in Argentina, Brazil, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Chile and Puerto Rico.

For Claudio Aqueveque, a professor at the business school of Adolfo Ib��ez University in Chile, the current recession represents an opportunity for Wal-Mart. �The problems our region is facing this year will lead to major changes in the behavior of consumers, associated with a greater sensitivity to price; and this means tuning in to [Wal-Mart�s] low-price strategy.�

Nevertheless, Jagmohan S. Raju, a professor of marketing at Wharton, warns that �Wal-Mart will have to face competition from local retailers who can operate on smaller margins and provide more personalized services than the U.S. retailer can offer.�

Alvaro Escobar, professor of economics and management at the University of Concepci�n in Chile, adds that Wal-Mart also could face barriers of a cultural and economic nature while expanding in Latin America. �Each country is a completely different market, with very dissimilar economic realities. So the great challenge for the multinational will be to figure out how to deal with the recession in each nation.�

CREATING DEMAND

According to Pablo Naranjo, a professor of business at the Adolfo Ib��ez University, income distribution in Latin America has deteriorated a great deal in recent years. �If the current crisis is affecting every layer of society, the most disadvantaged segments of the population are looking for more access to credit in order to stay afloat, especially when it comes to food.�

Naranjo adds, �Wal-Mart can be an attractive alternative for the population because of its leadership in [low] costs. But it will have to accompany its supply [of low-cost products] with options for credit, as it has done in Chile, for example.� He notes that when Wal-Mart recently bought D&S -- an important regional player that owns the L�der supermarket chain -- it set up a credit card known as the Presto Card, which can be used not only by consumers in Lider supermarkets but in other areas of business such as pharmacies, banking and travel agencies. �This approach would appear to be a good way to get closer to the reality of the country,� Naranjo says.

According to Aqueveque, Wal-Mart can take advantage of other opportunities related to the anticipated economic growth of the region. �Projections call for higher growth in developing countries [as a whole]. In fact, Wal-Mart�s financial results in Latin America in 2008 -- especially in Brazil and Mexico -- were quite positive compared with its operations in the rest of the world, so it seems to be a sure bet that the company will deepen its presence in the region.�

Nevertheless, Naranjo warns that in coming months Wal-Mart will have to overcome significant economic barriers. �With the economic outlook deteriorating, there will be less demand for products and services, and there are clear signs of rising unemployment, which affects consumers� income. So, Wal-Mart will have to fight to maintain its plan [for expansion]. Along parallel lines, it will have to compete vigorously with other retailers that are already established in each country, and who are facing [their own] battle to survive these days.�

David J. Reibstein, professor of marketing at Wharton, agrees: �Although Wal-Mart is well-known for guaranteeing the lowest price on the market, it will face a tough competitive environment in Latin American countries because, in each one of them, it will have to create sufficient critical demand to justify a high volume and rotation of its products.� Given the current economic conditions, it will be very hard to achieve that, Reibstein notes.

MERGER POSSIBILITIES

According to Escobar, one of the most attractive opportunities for Wal-Mart is to grow by acquiring supermarket chains at competitive prices, as the retailer has done in Chile. In January, Wal-Mart bought 58.2 percent of the shares of D&S. �In the rest of Latin America, [Wal-Mart] will have to repeat the same strategy, or at least try to do so,� Escobar says.

Raju notes that �the crisis seems to be helping Wal-Mart but taking a toll on its competitors.� Naranjo agrees. �Without doubt, [Wal-Mart] has a great opportunity to take advantage of the credit-market collapse that other competitors have suffered from, and it can go on to make mergers and acquisitions, incorporating the financing solutions that those companies have already developed.�

Nevertheless, Naranjo says, this game involves some very tough practical challenges, such as managing a new company in a foreign language, installing more up-to-date business software, and maintaining the credit portfolios of local customers �who may be paying their bills later and later as a result of [rising] job losses in the middle and lower classes.�

Naranjo adds that if Wal-Mart manages to maintain the supply of credit offered by its �recently acquired competitors,� its strategy could work. �Credit generates forced loyalty; since the Latin American consumer today is not in a position to pay off his entire bill, he pays off only as much as he can. He continues to buy using credit; he continues to increase his debt, and he is forced to use credit again and again. In short, this source of credit is, in many cases, the only source [of credit] that people can currently obtain.�

ECONOMIES OF SCALE

Aqueveque notes that Wal-Mart also has in its favor the relative cultural homogeneity of the countries in questions. �This can be a positive thing for taking advantage of some product sectors and categories, and for generating regional economies of scale.�

Naranjo disagrees with that assessment, however. In his opinion, each country has its own pattern of consumption, and this will present an important challenge for the U.S. giant. �My impression is that Wal-Mart is still struggling to understand the Latin American consumer and his various ways of buying, which are constantly changing and depend a great deal on the economic instability of each country, which is exacerbated today by the global economic slowdown.�

For Wal-Mart to succeed in the region, �It must recognize the differences between consumers in each country, and stop thinking about Latin American culture as a single entity,� Naranjo says. �To achieve that, it will have to rely on the experience of its business partners in each country.�

POWER OF LOGISTICS

During the Chilean forum, Bergdahl said that logistics management has been a key factor behind Wal-Mart�s strong performance. This includes its modern distribution centers, its rapid turnover of inventory and its fleet of 7,000 trucks. �Our trucks arrived at New Orleans days before the U.S. government did, during the disastrous Katrina hurricane,� which battered the southern United States in August 2005, he noted.

Escobar agrees that Wal-Mart�s mastery of logistics is an important source of strength for the company. However, he argues that the retailer will need to pay even more attention to logistical elements if it wants to increase its presence in the Latin American market.

�The retailer�s business model, supported by its almost perfect logistics, will be difficult to emulate in our region,� Naranjo says. �Having a large number of shops and outlets [in Latin America] means facing a gigantic task in terms of managing assets.� One challenge he alludes to in particular is the delay in infrastructure development that characterizes Latin American countries.

REPLICATE STRATEGY

Aqueveque sees other opportunities for Wal-Mart�s growth. The giant retailer has successfully developed a multi-format strategy in its shops in Brazil and Mexico that it can replicate in other countries. This strategy involves moving into the supermarket business, shopping malls, department stores and financial services. In addition, �[Wal-Mart] can move into the pharmaceutical sector, as it has in the United States,� he says.

All that, says Naranjo, will mean significant costs for the retailer in terms of financing and human resources. However, Wal-Mart could compensate for that by achieving a high return on its investment while balancing the risks described above.

Bergdahl added during his Chilean forum presentation that �Wal-Mart manages to save its customers $2.5 billion in food costs each year, compared with other retailers.� Time will tell if the company will be able to provide the same benefit to its customers in Latin America.

This week in Walmart news:

Perhaps the biggest story this week is that a court is hearing, new oral arguments on the Dukes v Walmart case, the largest gender discrimination case in the US. The Wall Street Journal writes about its import and the effect it could have on future cases while both sides remain hopeful that they will come out on top.

In other legal news a woman is suing Walmart for $1.2 million after their pharmacy mislabeled her prescription. She took too much of the medicine because of the faulty label and her heart stopped several times.

After nine years, Walmart has finally begun talking the the United Food and Commercial Workers Union in Texas. A deli department in a Walmart store coted to form a union nine years ago, but instead of recognizing the union, Walmart shut down the deli, opting to only sell prepackaged meat. In fact, they shut down all of their delis in the state.

Walmart has started a new brand of home furnishing for teens called Your Zone. According to their release, "Your Zone provides a platform for teens to create their own space and express their evolving personality," because nothing says self expression like a big box store.

Following their home office layoffs last month, Walmart has shut down an optical lab in central Ohio, laying off 650 employees.

Finally, there have been lots and lots and lots of stories about theft and crime at Walmart. There are even more stories, but we think you get the idea.

You can always check all the stories we're watching over on Twitter. We follow all the news about Walmart and keep up with the current conversation about Walmart too. Check us out!

As they do every year in March, the Consumerist has their Worst Company in America competition going. For those of you who don't know, it's a March Madness style competition where companies go head to head in an online poll every day until one is crowned the Worst Company in America. You can check out the bracket for the competition.

Today's round is Walmart versus HP. We think Walmart clearly wins this round. While you may be frustrated with HP's customer service, or their return policy, or their products, we think you'll agree that Walmart is worse. Whether you choose to focus on Walmart's poor pay, their abuse of workers, their lack of benefits for employees, their use of sweatshops abroad, or specific egregious actions like the case of Debbie Shank or Jdimytai Damour, Walmart is clearly worse than HP.

So go vote.

Via the Chloregy blog, we learned that BBMG just conducted a study of consumers about green products. BBMG found that while people are still concerned about the environment and want to buy environmentally responsible products, they tend not to believe claims about products.

Of particular interest was that when asked to name companies that are the most and least socially responsible, consumers named Walmart the most in both categories. In other words people think of Walmart as a responsible company and the height of an irresponsible company. We're guessing this was probably two distinct groups of people, but it highlights that Walmart's greenwashing PR is working, at least for some of the population.

Here's the post from the Chloregy blog:

Nearly one in four U.S. consumers (23%) say they have "no way of knowing" if a product is green or actually does what it claims, signaling a lack of confidence in green marketing and revealing a widespread "green trust gap," according to the BBMG Conscious Consumer Report: Redefining Value in a New Economy, the second national study on purchasing behavior and social values by branding and marketing agency BBMG.

Consumers' lack of trust does not mean lack of interest. The BBMG report finds that 77 percent of Americans agree that they "can make a positive difference by purchasing products from socially or environmentally responsible companies," and they are actively seeking information to verify green claims. Consumers are most likely to turn to consumer reports (29%), certification seals or labels on products (28%) and the list of ingredients on products (27%) to determine if a product is green and does what it claims. Consumers are least likely to look to statements on product packaging (11%) and company advertising (5%), signaling deep skepticism of company-driven marketing.

"The economic crisis has created a moment of reflection where consumers are redefining what truly matters and evaluating purchases based on both value and values," said Raphael Bemporad, co-founder of BBMG, an agency working at the intersection of branding, sustainability and innovation. "This is a moment for leadership. By delivering on the multiple dimensions of value - price, performance and purpose - brands will be able to close the green trust gap, weather the economic storm and thrive in the sustainable economy of the future."

Findings from the BBMG Conscious Consumer Report (2009):

* Interest in Green Holds Despite Tough Economy. Nearly seven in ten Americans agree (67%) that "even in tough economic times, it is important to purchase products with social and environmental benefits," and half (51%) say they are "willing to pay more" for them.

* Price and Performance Still Paramount, But Green Gains Ground. Price (66% very important) and quality (64%) top consumers' list of most important product attributes, followed by good for your health (55%) and made in the USA (49%). But green benefits have increased in importance since last year - including energy efficiency (47% very important in 2008, 41% in 2007), locally grown or made nearby (32% in 2008, 26% in 2007), all natural (31% in 2008, 24% in 2007), made from recycled materials (29% in 2008, 22% in 2007) and USDA organic (22% in 2008, 17% in 2007).

* Wal-Mart Tops List of Most and Least Socially Responsible Companies. When asked unaided which companies come to mind as the most socially or environmentally responsible companies, 7 percent of Americans named Wal-Mart, followed by Johnson & Johnson (6%), Procter & Gamble (4%), GE (4%) and Whole Foods (3%). Wal-Mart also topped the list of the least responsible companies (9%), along with Exxon Mobile (9%), GM (3%) and Ford (3%), Shell (2%) and McDonald's (2%). Interestingly, 41% of Americans could not name a single company that they consider the most socially and environmentally responsible.

* Consumers Reward, Punish and Influence Based on Corporate Practices. Seven in ten consumers (71%) agree that they "avoid purchasing from companies whose practices they disagree with"; and approximately half tell others to shop (55%) or drop (48%) products based on a company's social and environmental practices.

"At a time of radical transparency and a growing demand for accountability, consumers are rewarding brands that align with their values, punishing those that don't�and spreading the word with their family, friends and peers," said Mitch Baranowski, co-founder of BBMG. "Brands can close the trust gap by telling authentic stories and empowering a consumer tribe to share ideas, experiences and influence."

We've always known that there was a problem with Walmart and crime. Their parking lots tend to be a particularly high crime area, and while many Walmarts have security cameras (usually for spying on employees they suspect are talking about unions), they tend not to be monitored. Moreover, Walmart does not patrol their parking lots, despite evidence that patrols could dramatically reduce the crime that happens there. Check out the Walmart Crime Report website we put together for more information.

Why do we bring this up now? We've noticed a dramatic increase in stories about theft and violence at Walmart. In the last few days we've seen stories about arrests in the store, hold ups at gun point and knife point in the parking lots, police looking for suspects, and more.

This is probably a result of the poor economy, but it is still troublesome. Walmart should have a security guard patrolling their parking lots occasionally (not a lot to ask, really) for the sake of their employees and customers, but I think we all know that isn't likely to happen.

The Wall Street Journal wrote an article yesterday about the Dukes v Walmart lawsuit which is currently facing an appeals court hearing over its class action status. For those who don't remember, this is one of the largest gender discrimination cases in the United States, with six women alleging that Walmart unfairly discriminated against them in terms of pay and promotional opportunities because they are women.

The important parts of this article are that: one, the outcome of the case could have far reaching implications on other class action suits and other discrimination suits; and two, that the Obama administration and the Equal Employment Opportunity Commission are siding with the plaintiffs, not Walmart in the case.

Here's the story:

Wal-Mart Ruling Has Wide Reach on Discrimination Cases

Wal-Mart Stores Inc. heads back to a federal appeals court on Tuesday to argue that a sex-discrimination lawsuit against it shouldn't proceed as a class-action case covering more than a million women.

A ruling in the case by the Ninth Circuit Court of Appeals in San Francisco could have broad implications for future discrimination lawsuits, according to the federal Equal Employment Opportunity Commission, which last week filed a brief supporting the class certification that Wal-Mart opposes.

The case began in 2001 when a 54-year-old Wal-Mart employee from California named Betty Dukes alleged in a discrimination claim that she was denied the training needed to obtain a higher-paying job because of her sex. The lawsuit cites studies showing that female Wal-Mart workers earn 5% to 15% less than their male counterparts in the same jobs, differences that couldn't be explained by seniority or performance reviews.

Wal-Mart denies the allegations of discrimination on the basis of sex.

After a federal district-court judge granted class-action status to the case, it grew to include more than 1.6 million women who have worked at Wal-Mart since December 1998, which lawyers say makes it among the largest class-action sexual-discrimination cases in the country. The class status was upheld by a three-member panel of the court of appeals in 2007.

But Wal-Mart asked for a rehearing, arguing that even if the plaintiffs prevail in getting class certification, punitive damages and back pay must be awarded on an individual basis, rather than in the aggregate. The appeals court agreed last month to revisit the case, which will be heard by 11 members of the 24-judge court.

Because of the large size of the class, by some estimates Wal-Mart could face penalties in the billions of dollars; that liability would shrink dramatically if the plaintiffs have to proceed individually.

The EEOC says that if Wal-Mart's argument is successful, it would effectively preclude claims for punitive damages and back pay in cases in which plaintiffs -- or the commission itself -- prove that there has been a pattern or practice of discrimination.

"It would be 'nonsensical' to prevent victims of particularly egregious discrimination from proceeding collectively," the commission said in its friend-of-the-court filing.

This week in Walmart news:

There have been several stories about companies stepping up to challenge Walmart for a larger portion of the market. First Target decided to offer more items they consider recession proof in order to compete with Walmart. Then Best Buy stepped up and announced that with Circuit City out of the way, they considered Walmart their big competition.

Walmart announced that they would open two new store that would cater specifically to Hispanic communities. The stores are dubbed Supermercado de Walmart.

Walmart's PR department was busy this week, announcing that they were revamping their store brand to take advantage of customers who are trading down. They also announced they were cutting prices on eyeglasses and contacts.

Also on the PR front, Walmart made a big, flashy announcement that they would be giving $2 billion to hourly employees in the form of bonuses, discounts, and contributions to 401(k) and profit sharing programs. We put out an official statement about the 'bonuses' and got a few good quotes in subsequent news stories.

Someone started a rumor that a gang would shoot three females outside a Walmart and text messages warning of the possible event spread around the country. The rumor proved to be little more than an urban legend or hoax.

Lastly, the Obama administration and the Equal Employment Opportunity Commission have sided with the women suing Walmart in the largest sexual discrimination class action law suit in history. Walmart has attempted to argue that the class action status denies them the right to defend themselves against each case individually.

Today Walmart announced that it would be giving $2 billion to its hourly employees through bonuses, profit sharing programs and 401(k) retirement programs. It sounds great, and it's a step in the right direction for Walmart, but we took a look at the details and found it sorely lacking.

Here's the statement we put out to the press. We'll have more about this story as we get more research in.

For Immediate Release: March 19, 2009

THE TRUTH ABOUT WALMART'S BONUSES
Statement from WakeUpWalmart.com

Today, Walmart announced that they would pay around $2 billion to their hourly workers through direct bonuses, merchandise discounts, contributions to 401(k) retirement plans and profit sharing plans. While acknowledging that any money in workers� pockets is a good thing in this economy, WakeUpWalmart.com today reminded shoppers that America�s largest private employer can do better.

"Like most things with Walmart, the devil is in the details," said WakeUpWalmart.com director Meghan Scott. "Four-hundred dollars in the pockets of Walmart workers is a nice gesture, but if Walmart really wants to help their workers move forward in a tough economy, it would offer more than a one-time payment � it would raise wages. Walmart�s 1.4 million workers are the backbone of our economy and they can't survive on 20 hours a week, unaffordable health care and virtually no retirement security. In the midst of crucial public debate over the Employee Free Choice Act, one might question Walmart�s timing and motives.

"As the America's largest retailer with billions in profits, Walmart has the power to raise the floor for all American workers. Today's news is encouraging but Walmart has a responsibility to do more."

According to news reports, Wal-Mart said they are giving $933.6 million in bonuses to their hourly workers.

A WakeUpWalmart.com analysis today found that if all of Walmart's American workers received a bonus, each person would receive around $666 on average.

However, calls from Walmart workers around the country reveal that many received far less than that average. Cynthia Murray, a full-time Walmart worker in Laurel, Maryland, reported that she got a bonus of $169.39. Another full-time associate in Wilton, New York, received $423.

Using Walmart's own figures, a full-time employee at 34 hours per week, making the average wage of $10.86 per hour, will earn $19,200.48 per year. The federal government�s definition of poverty for a family of four is $21,200.

###

Today the Civil War Preservation Trust held its annual press conference to draw attention to battlefields that are under threat of being encroached upon. One of the bigger stories this year has been Wal-Mart trying to build a giant store on the Wilderness battlefield in Virginia. Their headline speaker was Oscar-winning actor and activist Richard Dreyfuss (shown to the right).

In his speech, Dreyfuss spoke of the importance of history and education, about how history informs our national identity, and what we can learn from the civil war. He said he was for preserving the Wilderness battlefield because it reminds us of who we are, of "us at our best and us at our worst." He also spoke of the demise of so many historical sites saying, "we eat our history."

Dr. Libby O'Connell, Chief Historian for History Channel, also spoke about Wal-Mart's decision to build a store so close to a battlefield, explaining that the organization wasn't asking Wal-Mart to leave, just to choose another location and think more carefully about their decisions.

We couldn't agree more. We often congratulate communities for keeping Wal-Mart out, but it isn't because we don't want Wal-Mart to build any stores, per-se. It's because many communities don't want Wal-Mart to build, and Wal-Mart should listen. Many communities don't want Wal-Mart to ruin their local economy as they've done in countless towns. Other communities don't want Wal-Mart to take away from the small-town feel they have defended for decades. In this case, the community doesn't want Wal-Mart to ruin an important piece of our country's history and the company should listen.

Coming on the heels of Target's announcement that they would begin to carry 'recession proof' goods and try to capture some of the market share from Wal-Mart, Best Buy announces that Wal-Mart is their target too. Now that Circuit City has gone out of business, Best Buy has turned its attention to Wal-Mart.

It is, of course, only natural for businesses to want a piece of what Wal-Mar has. They're doing absurdly well in this economy. We just wonder if all these challengers are all talk, or if they'll have any effect.

Best Buy's incoming CEO has been touring stores and will attempt to make branches of Best Buy more interactive to compete with Wal-Mart's prices.

Here's the story from MediaPost:

Best Buy is preparing to fend off Wal-Mart's brutal price competition by giving consumers stores that are more interactive, Miguel Bustillo reports. Instead of being wowed simply by low prices, customers will be able to step into the world of a new videogame or see their faces captured by a high-definition video camera.

The effort will be lead by current COO Brian Dunn, who takes over as CEO in June. A onetime Best Buy stereo salesman, he still believes that the best retail innovations come from front-line workers, and he has embarked on a tour of stores in search of inspiration for remodeling plans that he sees as a way to differentiate the retailer from competitors. "We want our stores to morph into a series of experiences," he says.

Dunn says he intends to win customers by matching Wal-Mart on prices, and to build on Best Buy's existing strategy of helping customers navigate increasingly complicated technology. The key will be making the most of Best Buy's tech-savvy sales force, he feels.

The Civil War Preservation Trust is having a news conference tomorrow to draw attention to the Wilderness civil war battlefield and Wal-Mart's attempt to build a gigantic big box store near it. We'll be going to cover the event, but I thought I'd give anyone in the DC area a heads up about the event.

OSCAR-WINNING ACTOR RICHARD DREYFUSS TO SPEAK AT ENDANGERED BATTLEFIELDS NEWS CONFERENCE

(Washington, D.C.) Oscar-winning actor and education activist Richard Dreyfuss will be the keynote speaker at a news conference about endangered Civil War battlefields on Wednesday, March 18, 2009. Best known for his roles in films like American Graffiti, Jaws, Close Encounters of the Third Kind, and his Academy Award-winning turn in The Goodbye Girl, Dreyfuss is also an avid student of history and has been involved in numerous documentary projects, including The Great Battles of the Civil War and Lincoln.

Dreyfuss will be joining Civil War Preservation Trust (CWPT) President James Lighthizer at the news conference for the release of History Under Siege, the organization�s annual report on the nation�s most endangered Civil War battlefields and what is being done to rescue them. Also speaking at the event will be Dr. Libby O�Connell, chief historian at History, formerly The History Channel.

The news conference will be held at 10:00 a.m. in the First Amendment Lounge of the National Press Club. Copies of the report will be available at the event. Refreshments will be served.

Following the news conference, Dreyfuss and Lighthizer will visit the African American Civil War Memorial, located at 10th and U Streets, NW, Washington, D.C., for a wreath-laying ceremony.

WHO: Oscar-winning actor Richard Dreyfuss, CWPT President James Lighthizer and historian Dr. Libby O�Connell

WHAT: News Conference and Wreath-Laying Ceremony

WHEN: Wednesday, March 18, 2009 at 10:00 a.m.

WHERE: News Conference will begin at 10:00 a.m. in the First Amendment Lounge of the National Press Club, 529 14th Street, NW, Washington, D.C.

We just thought you'd like to know that Bank of America is using your tax payer money to subsidize Wal-Mart and other big box stores:

Bank of America's Stimulus For Wal-Mart & Target

The head of the embattled Bank of America told members of the Boston College Chief Executive Officers Club this week that his company is now making money.

"Bank of America should generate more than $100 billion in revenue this year," said CEO Ken Lewis, "and close to $50 billion in pre-tax, pre-provision earnings. That kind of cash flow can solve a lot of problems, given time and an improving U.S. economy." Lewis added that his company won't need more money from the U.S. taxpayers than the $45 billion it has already received from the Treasury's bank recapitalization program (a.k.a. Troubled Asset Relief Program). "While some banks may need more public support in the future," Lewis promised, "I don't believe we will."

Bank of America used around $20 billion of loan money to acquire Merrill Lynch. But the bank has made its first dividend payment on its TARP loan back to taxpayers. "Bank of America already made our first payment of $400 million on February 17," Lewis told the CEOs gathered at Boston College. "Our goal is to pay back the TARP funds as soon as we possibly can."

Indeed, the bank appears to be so confident in its future that it is giving some money back directly to its customers. Branch offices of the Bank of America are distributing fliers announcing the corporation's new "Add It Up" program, which gives cash back to customers who shop at select big box stores like Wal-Mart, Target and Home Depot. The giant bank is not only planning to pay back Uncle Sam as soon as possible, but it will also give cash back to people who buy Chinese imports at Wal-Mart. The Bank's stock may have been rolled back more than 80% over the past year, but customers can still make a deal if they shop at chain stores like Dick's, Sears, Staples and Sam's Club.

According to Bank of America, the Add It Up program "maximizes your purchasing power by giving you cash back awards when you make purchases at participating retailers using your registered Bank of America credit or check card." Once a customer signs up for the program, they receive an email notification to start shopping either online or in-store at over "250 leading retailers." You have to use your Bank of America card, of course, when you make the purchase, but if a $250 camera is being sold at a retailer's discount price of $200, and the retailer and the Bank have agreed to a 4% cash back---you get $8 back. Cash back earnings are then credited to your checking or credit card account.

You can only be linked to retailer sites through the Bank of America Add It Up website. Online purchases made at participating Retailers by going directly to the retailer's website, rather than going through the Add It Up website, will not earn any Add It Up cash. If you shop online at Walmart.com you earn 2% cash back per dollar spent. If you shop at Target's website, you earn 4% cash back per dollar spent. If a customer enrolls by July 12, 2009, Bank of America will match 100% of the cash back rebate for 45 days after the date of enrollment. The maximum total match that may be accrued during the double cash back rebate period is $250 per customer for all enrolled cards.

This somewhat clunky, bureaucratic Add It Up rebate program really adds up to little more than a promotion of Bank of America credit cards, and shopping at big box or national logo stores. It's not surprising that America's largest bank can only set up deals with America's largest merchants. The program includes Apple, Barnes & Noble, Best Buy, Bloomingdales, Borders, Dell, Gap, Home Depot, Kmart, Kohl's, Lord & Taylor, Macys, Office Depot, Staples, Target, Saks, Sam's Club, Sears, Wal-Mart, and other giant retail chains. The Add It Up program is just one more inducement for shoppers to skip over their local merchants, who are not big enough for Bank of America to bother with.

But this blackout of local businesses is exactly the reason why Add It Up does not compute on Main Street. After taxpayers gave Bank of America a gigantic stimulus payment, the corporation turned around and created a stimulus program for many of the companies who already have the advantage of scale over the smaller retailers. There are probably many logistical reasons why Bank of America is unable to interface with local merchants, or help out the independent business owner who feels forgotten by the Big Bank. But in the end, Add It Up ignores almost all of the businesses that make up the backbone of Small Town, U.S.A. Add It Up displays one of the weaknesses of the megabank---it's inability to participate in the life of grassroots America.

Wal-Mart does not need the help of Bank of America, but many of the small towns that host a Bank of America branch, do. Instead of helping big boxes get bigger, Bank of America should come up with a Main Street Program that provides low-cost capital or bridge loans to the little businesses or retail start ups--like the $20,000 loan Sam Walton used to buy his first Ben Franklin store in Newport, Arkansas.

Ken Lewis is right: Bank of America can solve lots of problems. But subsidizing Wal-Mart isn't one of them.

This week in Wal-Mart news:

Citigroup downgraded Wal-Mart's stock rating from 'buy' to 'hold' on fears that the Employee Free Choice Act would pass, Wal-Mart would become a union shop, and that would cost them lots of money. The very next day, the analyst who made the call to change the stock rating mediated a conference call to talk about how to defeat the Employee Free Choice Act. Wal-Mart also went on the record saying they were confident they could defeat the bill.

Wal-Mart announced they would start selling Electronic Medical Records to doctors offices and hospitals as a cost saving measure.

Two new Wal-Mart stores will open that will focus on catering to a Hispanic audience, a new concept that is being tested.

Wal-Mart will continue it's PR push, shaking things up and looking to hire more Public Relations firms for a large new account. While some PR firm or firms can look forward to a new large account, Aflac lost Wal-Mart's business.

Finally, Sam's Club, Wal-Mart's membership wholesale club, has a new Chief Financial Officer, Mr. Brian C. Cornell.

Today Forbes released their list of the World's Billionaires and, surprise, surprise, the Walton family is still on it! Not only are the on the list, but they have jumped up in rank significantly. Put together the family's fortunes and they would easily top the list.

Last year the four children of Sam Walton all held ranks in the world's billionaires list. Jim, Christy and Rob Walton tied to the humber 26 rank (all with a worth of $19.2 billion) and Alice Walton came in at number 29 with $19 billion. This year the four rank numbers eleven through fourteen. Their worth has decreased slightly (Jim is now worth $17.8 billion while the other three are all worth $17.6) but in comparison to others on the list, they have lost very little. Bill gates, who tops the list, is now worth $40 billion down from $58 billion a year ago. Warren Buffet (number 2) lost $25 billion and is now worth $37 billion. Of course if you add up the Walton's fortune it comes out to a staggering $70.6 billion, easily topping Gate or Buffet.

Of course there's nothing wrong with being absurdly rich like the Waltons. No, our issues is more that this money, mostly coming from Wal-Mart stores, is made off the backs of mistreated employees and the poor. The Waltons are more than happy to keep the billions Wal-Mart reaps for them, but they should also step up and take responsibility for the negative impact the company has. They should demand that Wal-Mart treat its employees well, pay them a living wage and offer them adequate benefits. They should demand that Wal-Mart stop using sweatshops and exploiting workers around the world. And they should demand that Wal-Mart not cut hours and layoff workers.

Wal-Mart has set off what is being described as a 'massive' public relations review. It seems they are looking for a new company to represent them to focus on online market and social media, and various other duties that come along with working for the world's largest retailer. It's not clear if the new agency will replace Wal-Mart's current agency, Edelman, but the job will be 'significant'.

We're not sure what set this review in to motion. Perhaps it's just the new CEO shaking things up. Or, perhaps it's the hugely public and all to frequent PR nightmares Wal-Mart has faced in the last few years. We're talking about things like the tragic death of Jdimytai Damour in a stampede on Black Friday, or the case of Debbie Shank who was left permanently brain damaged by a car accident and then was sued by Wal-Mart to reimburse their already bloated coffers, or when Wal-Mart held mandatory meetings to tell their employees not to vote for President Obama or democrats, or when Wal-Mart dropped it's production company who then started selling previously secret tapes.

Regardless of who Wal-Mart's PR company is, we expect them to keep spinning Wal-Mart's actions on health care and the environment.

Reuters has an article about how citigroup has changed its advice from 'buy' to 'hold' for Wal-Mart stock because of the potential for Congress to pass the Employee Free Choice Act. Citi speculates that the new law would lead to a unionized Wal-Mart which would lead to higher labor costs and lower profits. We're not totally sure the Employee Free Choice Act would lead to unionization. Wal-Mart has proven that they respond quickly and viciously when they feel there is a threat of unionization. They fire or threaten employees, forestall organizing by any means necessary (including spying on associates) and simply refuse to negotiate with workers if they do choose a union. They've gone as far as simply shutting down stores to avoid giving their employees a voice on the job.

More to the point, however, is that Wal-Mart isn't going to be irreparably damaged if they have to pay their employees a little better and provide them with adequate benefits. In fact, a study done at the University of California at Berkeley's Center for Labor Research and Education showed that Wal-Mart could raise it's minimum wage for all 1.4 million American employees to $10 an hour and it would have little effect on the company. Likewise, Wal-Mart could easily provide adequate and affordable health care with little effect on their profits. Wal-Mart made over $12 billion in profits last year. They can afford to take care of their employees the way they say they do.

We just wanted to let you, our loyal blog readers, know that we are changing up the way our commenting system works. In the past, to keep down spam comments, we would read each comment and then approve them before they showed up on the blog. While this was great for keeping spam off our website, it meant comments didn't show up quickly. We realize this stifled any chance for real time discussion and conversation. So now we have it set up so that your comments will show up immediately. We're still tweaking it, so there may be some spam that gets through in the beginning, but we hope that this change will foster more conversation and discussion on this blog. We want to hear from you, and we want to know what you are thinking. Please, share your thoughts, your experiences, your ideas. Let the commenting begin!

Welcome to the first installment of Wake Up Wal-Mart's weekly news roundup, where we recap the week in Wal-Mart news. Fridays are a good day to look back on the week and reflect on all that has happened. Here then, is what's been going on with the world's largest retailer:

There was a rash of violence associated with Wal-Mart this week. A shooting outside a Wal-Mart in Arizona left one dead and another wounded, the suspect in the case then killed himself when police pulled him over. Another shooting in Florida City sent one woman to the hospital. Wal-Mart also sold ammunition after 11 pm, against store policies, which lead to two deaths. Wal-Mart later destroyed the surveillance tapes that showed the transaction.

On the stranger side of news, a man found 10 human teeth in a wallet he was going to purchase at a Wal-Mart. Another man, upset that his wife had been injured at a Wal-Mart, climbed in to the rafters of his local store and began cutting down banners and yelling at employees and police officers. An escape artist nicknamed "Little Houdini" escaped from police after stealing a Wal-Mart truck and several other vehicles, including a tour bus.

On the site fight front, Wal-Mart is looking to build in New York City (in Union Square, no less...oh the irony) and Chicago, but aren't likely to make much headway. Wal-Mart also lost their battles to build in Blacksburg, Virginia and Leslieville in Ontario, Canada.

Lastly, Wal-Mart has been doing quite well even in this rough economy. This week they announced that their same store sales for the month of February were up 5.1%. Their board also decided to increase the payment of dividends associated with the company's stock by 15%.

Today Wal-Mart announced their same store sales numbers for the month of February. You probably wouldn't be surprised to hear that most companies aren't doing well in this economy. Wal-Mart, however, remains the exception. Wal-Mart's sales rose just over five percent compared to last year. Wal-Mart's sales also increased nearly ten percent internationally. Yes indeed, as their Chief Financial Officer once said, "tough times are actually a good time for Wal-Mart." Adding to the cheery news, Wal-Mart announced that they would increase the dividend their stock pays to shareholders by fifteen percent.

It would seem, then, that Wal-Mart is doing pretty well. Their shareholders are being rewarded. No doubt their new CEO will be making a salary in the tens of millions plus bonuses and the like. How about the workers, though? How has the company rewarded the more than one million Americans that make the company so successful? Well, there have been layoffs at the home office, and, from what we've heard, massive cutbacks in hours across the country. Also, since the company is doing so well, these lucky associates also still have to deal with poor pay, inadequate or unaffordable benefits, poor treatment and discrimination.

If Wal-Mart were truly serious about taking care of their associates and treating employees like family, they'd improve on some of these areas since they are doing so well at the moment.

Back in September, we told you that Blacksburg, VA, the hometown of Virginia Tech, was fighting to keep a Wal-Mart out of their town. Their last shot at stopping the massive development they feared would infringe upon their small town community, ruin small businesses, the environment, and increase sprawl, was the State Supreme court. Recently it was announced that opponents of the Wal-Mart development, including the town of Blacksburg and Blacksburg United for Responsible Growth (BURG), have won the court ruling. Congratulations to Blacksburg and BURG who successfully stopped Wal-Mart from coming to town.

Here's the article about the recent court decision:

Blacksburg�s Battle With Big-Box Ends

Area residents and the Town of Blacksburg have been fighting for two years to keep a big-box store out. It looks like that wish has finally been granted by the Virginia Supreme Court.

The big-box store, thought to be a Wal-Mart SuperCenter, was being proposed by Fairmount Properties of Ohio and its partners. Fairmount is the same company that has developed the First & Main retail center in Blacksburg.

Friday�s ruling by the court, however, affirms the Blacksburg Town Council�s right to require that the developer apply for and acquire a special use permit to build a 186,000-square-foot store off South Main Street as part of the First & Main retail project.

Justice Lawrence L. Koontz, Jr., gave the opinion of the state Supreme Court and said the principal issue was whether the circuit court correctly applied a legal code in finding that the owner/developers of a parcel of real property obtained a vested right to a particular use of the property under a rezoning ordinance and whether that code would bar the locality from enforcing the amendment of the zoning ordinance against the property.

Blacksburg residents are expressing relief at the end of the long legal battle. �As a small business owner in the traditional downtown, a social justice activist, and a founding member of BURG, I am thrilled with the ruling of the Virginia Supreme Court in favor of the town and its residents, said Margaret Breslau, owner of Homebody, a Main Street store self-described as retail as activism. �There is no place for bait-and-switch tactics, big-box development in proximity to schools and residential neighborhoods, and development that is not consistent with the interests of the town and our community. We want smart growth, planned development, and green space. This is not just a victory for our town but for the state and I couldn�t be happier.�

Many local residents were opposed to the big-box idea and to Wal-Mart in particular. Blacksburg resident Kathryn Welch said she did not oppose Wal-Mart, per se. �But I believe Blacksburg residents were baited and switched,� Welch said. Worse, the superstore site, right next to an elementary school, was totally inappropriate and unsafe for young school children. So I am happy about the ruling.�

The court concluded in its opinion of more than 40 pages that the circuit court erred in ruling that the developers had a vested right to develop on the property structures for retail sales in excess of 80,000 square feet of gross floor space without the necessity of first obtaining a special use permit.

Blacksburg residents had been anxious to hear the court�s ruling, and at least one resident said he was surprised at the result. �I�m pleased and pleasantly surprised by the ruling,� said Tim Colley. �I think it gives Blacksburg a chance to re-look at what kind of a community it wants to be and to put in place those measures to implement that vision. This is a significant step in planning for a truly sustainable community and not one following the status-quo of other towns hungry for the tax base that big-box retailers promise.�

In a unanimous decision on Friday, the court reversed previous rulings.

�I�m speechless,� Town Attorney Larry Spencer told The Roanoke Times. �I did not expect such a decisive victory.�

The court said that it entered a �final judgment here for the Town and the residents.�