Wal Mart

Economic gloom, as expected, dragged down Christmas sales at retailers throughout the U.S., with discounters like Wal-Mart, luxury vendors like Neiman Marcus and pretty much everybody in between saying that their holiday season results were poorer than expected. In the first wave of what is expected to be a steady flow of bad news from the retail sector in early 2009, individual companies yesterday began reporting December results and announcing steps to cope with the disappointing sales and profits.

Maryland's first-in-the-nation law to compel Wal-Mart to spend more on employee health care suffered another setback yesterday, providing fresh incentive for legislative leaders in Annapolis to explore ways to boost insurance coverage that do not involve the retailing giant. The U.S. Court of Appeals for the 4th Circuit upheld a lower court finding that struck down Maryland's legislation. A divided three-judge panel ruled that the state's Fair Share Health Care Act was incompatible with federal rules that promote uniform treatment of employees.

New concerns about the environmental effects on the Patuxent River watershed - including those caused by a proposed Wal-Mart in Crofton - have prompted state and federal agencies to delay approvals on the long-awaited overhaul of Route 3, state highway officials said. The Maryland Department of the Environment, the U.S. Army Corps of Engineers and the U.S. Fish and Wildlife Service have begun re-examining state plans to construct a bridge over the Patuxent River and a "flyover" ramp linking Route 3 with Route 450. While state officials had previously expected to secure approvals by last fall and start construction by 2009 on the 9-mile stretch between Gambrills and Bowie, now they say federal highway officials may not sign off on the proposal until the summer of 2008.

Few efforts illustrate the breadth of Wal-Mart's ambitions - and the fears that they at times generate - as much as a nearly decade-long drive to establish its own bank. Yesterday, Wal-Mart Stores abruptly abandoned plans for its own bank, withdrawing its application to obtain a special banking charter after heavy criticism from lawmakers, the banking industry and watchdog groups. "We don't plan to do this again," said Jane J. Thompson, Wal-Mart's president for financial services. "The bank is behind us. We will use our partners to roll out new products."

Amid a groundswell of community opposition, Wal-Mart announced yesterday that it has backed out of a plan to build a 121,000-square-foot Supercenter in Crofton. After meetings with County Executive John R. Leopold and property owner William Berkshire, a spokesman for the retail giant noted that despite making several concessions, "it has become clear to us that there are various views about a project of this size and scope at this specific site and its relationship to the County's long-term development profile."

Urban Trust Bank, the Bethesda financial firm formed by Black Entertainment Television founder Robert L. Johnson, has struck a deal with Wal-Mart Stores to lease space for branches in the giant retailer's outlets in large cities. Dwight L. Bush, chief executive officer of Urban Trust, said at least one bank would open before the end of the year. Other locations have yet to be nailed down. The deal marks a significant step forward for a bank that's less than a year old and has just two branches but with an ambition to forge a national franchise.

Two years ago, Wal-Mart began a counterassault on its critics, launching a re-imaging campaign to thwart those who had successfully painted an unsavory picture of the company as an employer who didn't treat or pay its workers well, among other things. The world's largest retailer embarked on a public relations blitz, introducing initiatives to portray it as more environmentally friendly, more in tune with the communities where it was building and as a better employer to its workers. The strategy has succeeded in some areas, but the company remains a target of criticism on other fronts.

Maryland's latest fight between community activists and retail giant Wal-Mart is about to enter round one -- this time outside Hampstead.About 40 people are expected to attend a county Subdivision Advisory Committee meeting this morning to protest construction of the proposed discount giant store in North Carroll Shopping Plaza on Route 30 between Hampstead and Manchester.Formal plans for the 101,194-square-foot Wal-Mart will be unveiled during the public meeting, ending months of speculation over the use of the property, which was rezoned in November in anticipation of a "big box" retail development.

The owners of a Mount Airy shopping center want a Carroll County judge to order a current tenant, Rite Aid of Maryland Inc., to accept a new Wal-Mart there.Apparently, the Mount Airy Wal-Mart isn't the sure thing town planners and opponents thought it was.A provision in the drugstore's January 1972 lease -- when the Rite Aid was a Drug Fair -- states that the shopping center owners cannot lease space to or permit a competing business within a two-mile radius, according to the lawsuit filed this week.

BENTONVILLE, Ark. -- Wal-Mart Stores Inc.'s fiscal second-quarter profit rose 21 percent as the expanding U.S. economy and a push into groceries boosted sales. The world's largest retailer also clamped down on costs.Net income rose to $1.25 billion, or 28 cents a share, from $1.03 billion, or 23 cents, a year ago, the company said yesterday. Sales in the quarter that ended July 31 rose 15 percent to $38.5 billion from $33.5 billion.Wal-Mart's low prices, combined with rising wages and high employment, lifted sales of everything from electronics to clothing.

Four years ago, when Maryland legislators approved what became known as the Wal-Mart bill - a mandate that would have forced the retailing giant to either pay a minimum amount for employee health benefits or a hefty penalty to the state - it was derided by the company as both bad public policy and illegal. The latter objection proved to be true. It was thrown out by a federal appeals court as a violation of federal law that limits states' ability to regulate employee benefits. But the reasoning behind the proposal was sound: If companies are to compete on a level playing field, how can some be burdened with the obligation of providing increasingly expensive health care insurance while others are not?

U.S. seeks class action vs. Wal-Mart SAN FRANCISCO: The Obama administration sided with women suing Wal-Mart Stores Inc. for discrimination yesterday, urging a federal appeals court to let current and former workers sue as a group and proceed with the biggest sex-bias case in U.S. history. The Equal Employment Opportunity Commission rejected Wal-Mart's argument that as many as 2 million workers shouldn't be allowed to seek back pay and punitive damages as a group because that would violate the company's right to defend itself against each worker's claims before a jury.

NEW YORK -U.S. retailers' February sales showed their best performance in five months, aided by pent-up demand for new spring merchandise, and Presidents Day and Valentine's Day sales. Still, the better-than-expected performance didn't mean there's light at the end of the tunnel for retailers in the face of the across-the board consumer cutbacks, analysts said. They said some results were also driven by promotions that hurt profit margins. March sales will likely be negative with a calendar shift of Easter to April, they said.

Economic gloom, as expected, dragged down Christmas sales at retailers throughout the U.S., with discounters like Wal-Mart, luxury vendors like Neiman Marcus and pretty much everybody in between saying that their holiday season results were poorer than expected. In the first wave of what is expected to be a steady flow of bad news from the retail sector in early 2009, individual companies yesterday began reporting December results and announcing steps to cope with the disappointing sales and profits.

Frugal-minded shoppers spent their tax rebate checks at discount merchants last month, boosting sales at some of the country's largest chains. But they stayed away from higher-priced department stores and specialty stores, causing sales to fall by double-digits at Nordstrom Inc. and American Eagle Outfitters Inc. It was a sign that consumers are confining themselves to spending on the basics, and even then, they are looking for bargains, retail experts...

A state judge in Minnesota has ruled that Wal-Mart Stores, the discount department store chain, violated state laws on rest breaks and other wage matters more than 2 million times and as a result could face more than $2 billion in fines. The judge has threatened to impose a $1,000 penalty for each violation. The judge also ruled Monday that Wal-Mart owed $6.5 million to 56,000 current and former employees because of contractual violations, including a failure to give workers promised rest breaks at least 1.5 million times.

Larsen leaving as PSC chief Steven B. Larsen, who took over the Maryland Public Service Commission with a mandate to lower utility bills, is leaving the panel before finishing a yearlong quest to reregulate the industry. He will be replaced by Douglas R.M. Nazarian, a former litigator who joined the PSC as a general counsel last June. Nazarian said he would continue the strategy set by his predecessor. Wal-Mart to pay settlement Wal-Mart Stores Inc. will pay $250,000 to a pharmacy technician who suffered a disability resulting from a gunshot wound and was subsequently fired from one of the company's Harford County stores, the U.S. Equal Employment Opportunity Commission announced.

City officials recognized Wal-Mart yesterday for the company's support of a "Housewarming for the Homeless" drive to assist families who used to live under the Jones Falls Expressway. The Baltimore-Washington stores donated more than $28,000 worth of materials to the campaign, filling a tractor-trailer with such items as refrigerators, mattresses, sheets, blankets, pillows, shower curtains, lamps, bulbs, pots and pans, plates, cups, utensils, toiletries and cleaning supplies, according to city officials.

Police and U.S. Postal officials are investigating several letters sent to Carroll County department stores threatening a shooting incident, authorities said. The Boscov's, Wal-Mart and Target stores in Westminster, as well as Wal-Mart stores in Eldersburg and Hampstead, each received a letter Monday that contained similar threats, said Westminster City Police. As of yesterday, investigators had no more information on the letters or who might have sent them, said Capt. Pete Dantuono of the Westminster police.

Wal-Mart Stores Inc., the world's largest retailer, is getting back into the Christmas spirit. Two years ago, the discount chain substituted the word holiday for Christmas references and encouraged greeters to do the same, in line with other retailers' removal of Christmas from advertising and stores. Now, after criticism from religious groups, the Bentonville, Ark.-based merchant for the first time has brought Santas into its 3,407 stores. And, after an experiment at a few locations last year, the retailer has set up a Christmas Shop in 1,500 of its outlets.