Wal-Mart, detractors spar for spotlight
No. 1 retailer begins Arkansas conference aimed at improving image, but critics are there to rebut assertions.
By Parija Bhatnagar, CNNMoney.com staff writer

ROGERS, Ark. (CNNMoney.com) - "Champion the Customer" may be Wal-Mart's theme for its media conference getting underway Tuesday, but union-backed watchdog outfit Wake-up Wal-Mart is hoping to keep reporters' attention focused squarely on what it claims are the retailer's unfair labor policies.

This is the second year in a row that Wal-Mart (up $0.49 to $46.31, Research) will trot out its senior executives -- including CEO Lee Scott -- before invited members of the media. Issues to be discussed include improving customer service and merchandise assortment, Wal-Mart's expansion strategy both in the United States and internationally, and its benefits and healthcare policies for its 1.3 million American workers.

Chris Kofinis, spokesman for Wake-Up Wal-Mart, dismissed the two-day event as simply a public relations ploy by Wal-Mart to offset the string of negative publicity its suffered over the past few months.

"The only reason that Wal-Mart is holding this conference again is because it knows it has an image problem," Kofinis said. "Unless Wal-Mart takes better care of its workers, it's going to see sales slow, turnover rates will continue to rise and the public's frustration will grow bigger. Wal-Mart knows what it needs to do, but is choosing not to."

To drive that point home to the attending media, Wake-Up Wal-Mart scheduled a news conference at the Embassy Suites hotel in Rogers, the same venue as the Wal-Mart event. Kofinis said three current Wal-Mart associates and a former manager will talk about how the company's attempt to shift more full-time workers to part-time schedules has negatively impacted their lives and forced one of them to recently quit.

"Wal-Mart was aware about our press conference but I don't think they knew about the speakers that will be there," Kofinis said.

The Wake-Up Wal-Mart event precedes the start of Wal-Mart's own gabfest later in the day.

According to the conference agenda, Eduardo Castro-Wright, president and CEO of Wal-Mart USA, will talk about "improving the customer's shopping experience." Castro-Wright, formerly CEO of Wal-Mart's Mexico unit, Wal-Mart de Mexico, was promoted to his current position early this year.

Analysts said Castro-Wright's presentation is the one to watch, since he's the one tasked with improving slowing sales at Wal-Mart stores, as well as revamping the shopping experience for customers.

This includes everything from redesigning stores and updating merchandise to attract a higher-income shopper to removing store clutter and reducing the long lines at the checkouts which can result in lost sales as frustrated shoppers abandon their shopping carts.

Worker health care an issue

Also on tap is Susan Chambers, Wal-Mart's executive vice president of benefits administration.

Union groups went after Chambers late last year after Wal-Mart Watch released an internal company memo suggesting to the board that Wal-Mart could hold down spending on health care and benefits if it hires more part-time workers who aren't immediately eligible for coverage. She also advocated wooing younger, presumably healthier workers and discouraging unhealthy people from working at Wal-Mart.

Chief financial officer Tom Schoewe is among Wednesday's scheduled speakers. His presentation is expected to focus on customer service as a path to growth.

Last but not least, CEO Lee Scott will tie up any loose ends as the conference's final scheduled speaker.

Todd Jones, an analyst with investment firm PNC Advisors, which holds Wal-Mart stock in its $50 billion portfolio, said he perceived the media conference to be a positive for Wal-Mart.

"I think it's in Wal-Mart's best interest to portray its business in a positive way to the public. Last year's conference was a step in the right direction," said Jones.

But he specifically wants to hear Wal-Mart's game plan to improve its merchandise, and how it intends to get customers to shop for higher-priced and higher-margin items such as electronics, in addition to food and household products.

"Wal-Mart hasn't had much success in this area yet. I want to know how they intend to revamp their product strategy while staying focused on being a low-cost provider," said Jones.

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.