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.
How about giving firearms away free, to CCW holders only, in exchange for standing guard until all the firearms were out of the store?
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."
HA...as if any union would allow its members to work the long hours or take physical risks to get the goods into dangerous areas!
And how much have the unions given?
Or at least a $50 gift certificate!
Thank you again. I appreciate it.
Actually, I think if you include all the "stuff" they've donated they are well over $20 million.
And I read they are going to open small stores in affected areas and allow people who need basics- food, water, toiletries, diapers, etc have it for free.
And they are already putting their displaced workers to work in the towns they are now in. Some of these people are already back at work! WalMart said they would find a job for everyone of their associates who lost their job due to Katrina.
And why are people surprised when a business can respond and act quicker than government?
A co-worker of mine said that he bets a new bill will be passed, where if a disaster is imminent (hurricane et al) or if at all able in the case of an earthquake, terrorist attack etc, places that sell guns, weapons and ammo will have to have it locked in a vault.
WalMart has been good, but nobody can address every issue in 90,000 square miles within the first week.
Many people seem to be developing the mindset that the federal government should fix their individual situation right now. Sorry folks, it doesn't work that way.
The best story I've heard so far was when the Vietnamese community stated that they would accept help AFTER everyone else had been taken care of.
Now that's class.
New gun legislation never surprises me. If the government wants the vaults they should pay to install them. Course that means you and I will.
It surprises me also how many of these people had no disaster kit, no water, no food, nothing in preperation.
We've decided to add more ammo (and I think more guns soon). Also, more items like peroxide etc.
We've learned from this.
It stuns me how people think the government will be there to hold their hand immediately after a disaster. Attention people, you have to plan to take care of yourself for a few days. Plan for it.
Anyone remember "Two Guys" stores? They went Union and 5 years later they went belly up. My mother lost a good paying job when they went bust all because she supported the short term gain brought by the union.
Most folks that have heavy-duty arsenals, (machine guns, etc.) already have 1000 lb gun vaults anyway.
Tell your congresscritter that if EVERYONE was armed - not just the criminals and looters - there wouldn't have been any violent crime in NO.
Lots of looters were shot
I agree. We're having to get back on track. I spoke to my wife just last night, and we're going to put 90 days water aside and start rotating. That's just a start...
Same goes for me.
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