US: Wal-Mart expands its focus

Wal-Mart Stores Inc., which launched a broad environmental strategy in late 2005, wants to expand that focus to other issues including energy prices, international trade and U.S. health care costs. Chief Executive Lee Scott outlined plans in a speech last week to push for more energy-saving products for Wal-Mart shoppers, work with other retailers on social and environmental standards for the foreign companies they buy from, and trim prescription and health records costs at home.

The world's largest retailer might consider installing windmills or solar panels at its stores that would allow shoppers to charge electric vehicles, and it is talking with automakers about a possible role in the hybrid and electric car market, although Scott said those ideas were still ''out there.'' Scott said the effort follows on goals he set in a speech in October 2005 that started Wal-Mart's current drive to use less energy in its stores, cut down solid waste from things like packaging and sell more environmentally friendly products.

Scott spoke before about 7,000 Wal-Mart store managers in Kansas City, where the company holds a convention center meeting at the start of every year to look at new products and sales plans for the year ahead. ''Wal-Mart can take a leadership role, get out in front of the future and make a difference that is good for our business and the world", he said, according to an advance copy of his remarks.

Scott said Wal-Mart has a culture of action and innovation that he contrasted with the world of politics. Scott said people are losing confidence in the ability of government to solve problems, but that at Wal-Mart ''we don't see the sidelines that politicians see. And we do not wait for someone else to solve problems that might hurt our business or affect our customers in a negative way.''

Retail analyst Patricia Edwards of San Francisco-based Wentworth Hauser and Violich, which recently bought about 400,000 Wal-Mart shares after selling most of its stake in 2005, said Wal-Mart's efforts could benefit the company by generating good will among customers. ''You also have to remember that higher income customers are more likely to shop their conscience and spend more, too. If Wal-Mart can continue to softly woo those higher income customers into their stores with this 'kinder and gentler' personality during a harsher and more caustic economy, they'll do well,'' Edwards said.

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Publication date: 2/4/2008

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