- Wal-Mart just keeps getting bigger. The retailer, already
the largest in the world, announced aggressive expansion plans yesterday
for the coming year, aiming to open or extend up to 530 stores around the
world.
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- The announcement is likely to stir the debate about the
hidden costs of Wal-Mart's low prices and its continued unchecked growth.
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- At the last count, Wal-Mart employed 1.3 million workers
in the United States, making it the nation's largest employer. The company
has revenues of $256bn (£144bn) and is the eighth biggest trading
partner with China. The retailer has crushed rivals such as Toys R US,
now up for sale, and Kmart, which was propelled into bankruptcy.
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- Wal-Mart intends to open up to 165 additional stores
outside the United States. The company did not break the figures down further
but said specific plans for Asda in Britain were likely to be announced
next month.
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- Britain has proven to be Wal-Mart's most successful overseas
operation, in an otherwise mixed performance. This year the company opened
11 new Asda superstores, bringing the total to 267, and three George clothing
outlets.
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- In the US, the plans consist of 40 to 45 new discount
stores, 240 to 250 new supercentres, up to 30 new neighbourhood market
stores and up to 40 of its Sam's Club brand. Up to 160 of the new supercentres,
will be relocations or expansions of existing smaller discount stores.
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- Wal-Mart needs to keep growing to meet Wall Street expectations
but the company is beginning to meet resistance to its conspicuous expansion,
particularly as it runs out of small towns and starts to target urban locations.
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- The retailer has a bad reputation as an employer. Critics
argue that it pays low wages, has poor working conditions and bans unions.
There are also increasing concerns about its effect on local businesses
and the net effect on an area's jobs and income levels. Communities in
poor suburbs of Los Angeles and Chicago have defeated Wal-Mart's plans
to open local stores.
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- The retailer has also met with resistance from campaigners
in Vermont, where the concern is that large Wal-Marts on the fringes of
small towns rip the heart out of downtown areas.
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- Manufacturers in the US also complain that the retailer
uses its buying power to force suppliers to source goods and components
overseas.
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- Guardian Unlimited © Guardian Newspapers Limited
2004 http://www.guardian.co.uk/usa/story/0,12271,1320661,00.html
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