Posted on 09/06/2005 5:22:32 PM PDT by Chi-townChief
Wal-Mart Stores Inc. marshaled its massive distribution network to have its shelves stocked and its store inventories bolstered, prepared for tremendous demand for supplies needed before and after Hurricane Katrina struck.
The world's largest retailer has struggled on numerous public relations front in a prolonged battle with critics who say the company represents the worst of low-cost retailing. But Wal-Mart's response to the catastrophe — seen as far more effective than government efforts — has drawn praise from nearly all quarters.
Further, Wal-Mart donated millions in cash for relief and millions more worth of goods.
Burt Flickinger III, managing director for Strategic Resource Group in New York, noted that Wal-Mart CEO Lee Scott was groomed as a trucking manager and said Scott used his expertise to make sure the company was ready for the crisis.
"Unlike local, state and the federal government, which didn't react until days after the hurricane hit, Wal-Mart was at work around the clock before Katrina even hit land to have the stores fully stocked with full pallet positions of water, flashlights, batteries, canned soup, canned meat," Flickinger said.
"Wal-Mart served the city far better than any private or public institution," he said.
Flickinger praised Home Depot Inc., Lowe's Cos. and Walgreen Co., but said Wal-Mart's quick aid reflects the nature of the company. Kurt Barnard, president of Barnard's Retail Forecasting in Upper Montclair, N.J., also said the response provides a telling reflection of the company.
Barnard said media coverage wasn't the focus for Wal-Mart, though the company drew a prominent mention when it sent trailerloads of goods to New Orleans that were turned away early on by Federal Emergency Management Agency officials.
The company pledged $15 million to the relief fund being promoted by former presidents Bill Clinton and George H.W. Bush, and Wal-Mart gave another $2 million for other relief. The company donated $3 million in merchandise, including more than 100 trailer loads to emergency relief organizations, services and shelters.
The Walton Family Foundation has donated $8 million to the Bush-Clinton Katrina Fund and $7 million to relief organizations that include the Salvation Army, America's Second Harvest and The Foundation for the Mid-South.
Wal-Mart spokeswoman Mona Williams said the company does not want to pat itself on the back.
"The folks in these affected areas are our customers and associates," Williams said. "They've always counted on us to do the right thing for them. Wal-Mart is uniquely suited to respond in a big way."
Gerald Celente, director of Rhinebeck, N.Y.-based Trends Research Institute, which publishes a journal on economic trends, said Wal-Mart could shake the effect of recent negative impacts to its image from union attacks, lawsuits alleging bias against women and other court actions.
"Wal-Mart stepped to the plate," Celente said. "They didn't have to do that."
"We try to refrain from making value judgments — what the motive is. But the fact is that (Wal-Mart was) there with trailer trucks being turned away. Amazing, isn't it?"
Celente and Flickinger have been frequently critical of the business side of Wal-Mart, and Barnard has said of late that Wal-Mart's sales troubles run deeper than customers struggling high gas prices.
The company will face tough times if the price of fuel stays high, the analysts said. And Barnard said the company will have to solve its difficulties in attracting more affluent shoppers to its general merchandise sections, particularly apparel.
"This (fuel) price shock is real," Celente said. "Wal-Mart recognized it before Katrina. They were one of the few companies that made the announcement that these gas prices are hurting us."
As Wal-Mart answers its critics in the time ahead, Flickinger said the company would do well to remember "consumer and community support in these tough times rather than (taking) a scorched earth approach to organized labor."
Chris Kofinis, a spokesman for the union-backed group Wake-up Wal-Mart, credited Wal-Mart for its storm response. But he said the crisis that followed the storm illustrated the "economic divide in this country that we are fighting as a group to address."
"Our hope is that what comes from this is that Wal-Mart will take seriously our concerns and millions of people who want to see Wal-Mart do the right thing every day," Kofinis said.
"...the worst of low-cost retailing."
Read: Non-union.
"Even the looters at the Tchoupitoulas Street store agree...
"Wal-Mart. Always Low Prices. Always."
Having been a bit tough on WalMart when it donated $1 million to start, I have had to change my opinion. They're up to $15 million at this point. I believe it is fair to say I jumped the gun. I appreciate what they are doing.
Laugh of the Day. Thanks. I was wondereing if they have Targets and Kmarts in NO because I didn't see any of those being looted. I did see a Toys r Us being looted on television.
As one who traded replies with you on this subject I appreciate your candor.
I think when this is all over Wal-Mart will have the distinction of having contributed more to the relief effort than any private company ever has to any charitable cause.
There was an old joke that Walmart wasn't putting any stores in Iraq because there were targets everywhere!
Quick tally from all the Walmart aspects totals around $35 Million.
That is a hefty amount.
Thanks. It may not always look like it, but I try to be fair.
"Quick tally from all the Walmart aspects totals around $35 Million. "
How much did NARAL, ACT and MOVEON.ORG contribute? We know the faith based organizations are up to a billion.
I checked, and Target's in Jefferson Parish and Slidell, and Kmart's in Jefferson Parish, St. Bernard Parish and on the north shore of the lake. So they're all in the suburbs.
Speaking of which, while I appreciate that they might have stocked up the armory before the disaster (believe me, a 12 gage shotgun is included in MY survival plans) they should have done a better job securing those when they closed for the storm. No more wire cages, perhaps a vault-type device would be more appropriate.
Yeah, like that's gonna happen. Wally despises unions. Always has, always will.
A store in Canada had voted in the union. Wally's response? Close the store. Hardball!!
I despise unions also, another reason, in my mind, to like Walmart.
"Further, Wal-Mart donated millions in cash for relief and millions more worth of goods. "
ahhh yes...those greedy corporate moguls of commerce.
WHY? Why were they turned away?? How can a statement like this be made and not explained?? It's totally incomprehensible!
That does seem like a reasonable idea.
That was nice of you, but find someone better to admire.
As for Target, I've been rather tough on them too. My wife tells me they are big supporters of St. Judes. My reason for taking them to task was that they forbid the Salvation Army to solicit in front of some (possibly all) of their stores. That didn't sit well with me. That being said, I do believe they have a right to support the causes they choose and not support the causes they don't.
It baffles me why they would dis the SA. I don't particularly like hearing those bells, but the SA does good work with the funds they raise through those efforts.
I only meant it as a compliment to be man enough to admit a mistake, that is becoming a very rare trait in today's society.
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