Wal-Mart vows to continue expansion, much like a malignant tumor.

[Grimmlok]

By Emily Kaiser

ROGERS, Arkansas (Reuters) - Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) will not bow to opponents who say the world's largest retailer is too big, and will continue to grow as long as customers keep coming to stores, Wal-Mart CEO Lee Scott said on Wednesday.

Scott said the retailer was in the midst of a "transformation", as it tries to reach customers who shop its stores for food but look elsewhere for fashionable clothing or housewares. Wal-Mart is also trying to counter perceptions that it provides low-paying jobs and poor benefits, and damages the environment with its massive supercenters.

In a speech that covered Wal-Mart's key themes such as its commitment to employees, environmental sustainability, and community development, Scott took aim at labor groups who have organized grassroots campaigns to draw attention to Wal-Mart's low wages and benefits.


"Union-funded critics say the changes under way at this company are a publicity stunt," Scott told journalists gathered here at the retailer's second annual media conference. "They couldn't be more wrong.

In the past year, Wal-Mart has announced employee health-care plans with lower premiums; vowed to use only renewable energy and create zero waste; and launched a program to build 50 stores in blighted neighborhoods.

The year has also brought a slew of negative publicity, particularly over the number of workers who rely on Medicaid for health care. Maryland recently passed legislation requiring Wal-Mart to spend more on health care, and similar bills are under consideration in other states.

"It's going to be tough to legislate Wal-Mart out of your community," Scott said, calling the Maryland legislation "ridiculous".

"It's going to have to be the customer who says, 'I want my Wal-Mart to change.' We're going to grow this company as long as the customer allows us to grow. The power is in their hands -- not in the legislature, and not in Wal-Mart's," he said.

Scott said opponents were adept at organizing community opposition to new Wal-Mart stores, but said that in most cases they represented only a small, vocal minority, and the overwhelming majority in those communities welcomed Wal-Mart.

Opponents to Wal-Mart's expansion have found some allies in an unexpected place -- Wall Street. Some analysts have questioned whether Wal-Mart should slow its 8 percent annual U.S. square footage growth because of falling returns on investment.

Chief Financial Officer Tom Schoewe said the retailer is committed to that growth rate over the next few years, and has far more than 1,000 new stores in the pipeline.

Wal-Mart currently has more than 3,800 U.S. stores


"In the short term, an aggressive expansion program is negative to return on investment, but we're not in this for just today," he said. "Those stores will be adding sales and earnings to the chain for years to come."

Schoewe said return on investment had been falling for several years at the U.S. Wal-Mart Stores division, by far the largest unit. He said returns would likely flatten this year, and hopefully improve in the future.

[AliceInWonderland]

i hate this fucking place and I don't shop there ever ever ever! my cousin in Washington and all her friends shoplift from there though so thats cool.

[Grimmlok]

Wal-Mart isn't worth a jail term.

[AliceInWonderland]

they're minors so I say "steal steal steal until you hit 18"

[Lobelia]

I despise WalMart but I can't stand people who steal, either. It's just so selfish, to think you're entitled to something that doesn't belong to you. But hey, why not commit crimes & waste people's time, tie up the justice system & jack up prices for everyone else if you can ultimately get away with it? No biggie, right?

[Mr. Authority]

I'll admit the only time I was in Wal-mart (I was with a friend who needed food for a party at her house and the only store open in that town at that hour was Wal-Mart.), I shoplifted this case of Coke- Zero because that's my fav drink and I was thirsty like hell. Well when I walked out the door the alarm (or wahtever that noise was) went off but no one really reacted to it so I just went out.
It was fun shoplifting from that shit-hole store, but I won't risk jail time again.