The Bully of Bentonville
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18. Michael Barbaro, “Wal-Mart Chief Defends Closing Unionized Store,” Washington Post, February 11, 2005.
19. Richard C. Bradford, “Retail: The Wal-Mart Effect,” McKinsey Quarterly, I, 2002.
20. Peter J. Solomon, “A Lesson from Wal-Mart,” Washington Post, March 28, 2004.
21. Charles Fishman, “The Wal-Mart You Don’t Know,” Fast Company, December 2003.
22. Tim Johnson and Rick Rothacker, “Deal Seen as Solid for China, Iffy for BofA,” Charlotte Observer, June 18, 2005.
23. Ted C. Fishman, China Inc., 154.
24. Jerry Useem, “One Nation Under Wal-Mart,” Fortune, March 23, 2003.
CHAPTER TWO: THEY CALL ME MR. SAM
1. Robert Slater, The Wal-Mart Decade, 78.
2. Sandra S. Vance and Roy V. Scott, Wal-Mart: A History of Sam Walton’s Retailing Phenomenon, 51.
3. Vance Randolph, The Ozarks: An American Survival of Primitive Society, 306.
4. Sam Walton with John Huey, Sam Walton: Made in America, 112.
5. Ibid., 146. The remark was by John Walton.
6. Ibid., 146.
7. Randolph, op. cit., 303–4.
8. “An American Original,” Chain Store Age Executive, May 1992.
9. Bethany E. Moreton, “It Came from Bentonville: The Agrarian Origins of Wal-Mart Culture,” 59–60, in Wal-Mart: The Face of 21st Century Capitalism, Nelson Lichtenstein (ed.).
10. History of Laclede, Camden, Dallas, Webster, Wright, Texas, Pulaski, Phelps and Dent Counties, Missouri, 885.
11. Milton D. Rafferty, The Ozarks: Land and Life, 246.
12. Walton with Huey, op. cit., 3.
13. Vance H. Trimble, Sam Walton: The Inside Story of America’s Richest Man, 18.
14. Austin Teutsch, The Sam Walton Story, 28.
15. Ibid., 11.
16. Trimble, op. cit., 22.
17. Walton with Huey, op. cit., 14.
18. Ibid., 15.
19. Ibid., 17.
20. Ibid., 69.
21. Ibid., 30.
22. Ibid., 31.
23. Ibid., 32.
24. Ibid., 34.
25. Ibid., 33.
26. Ibid., 175.
27. Moreton, op. cit., 64, 70.
28. Michael B. Dugan, Arkansas Odyssey, 477.
29. Walton with Huey, op. cit,, 50.
30. Ibid., 42.
31. Ibid., 42.
32. Trimble, op. cit., 100.
33. Walton with Huey, op. cit., 45, 46.
34. Ibid., 160–61.
CHEERLEADER-IN-CHIEF
1. John Huey, “America’s Most Successful Merchant,” Fortune, September 25, 1991.
CHAPTER THREE: ROCKEFELLER OF THE OZARKS
1. Vance Trimble, Sam Walton, 47–48.
2. Susan Reed, “Talk About a Local Boy Making Good! Sam Walton, the King of Wal-Mart, Is America’s Second-Richest Man,” People, December 19, 1983.
3. “The History of Wal-Mart,” Walmartstores.com video library.
4. Walton credited Bob Bogle, the first manager of his store in Bentonville.
5. Trimble, op. cit., 91.
6. Sam Walton with John Huey, Sam Walton: Made in America, 3.
7. Ibid., xiii.
8. Richard Tedlow, Giants of Enterprise, 316.
9. Ron Chernow, Titan, 18.
10. Walton with Huey, op. cit., 29.
11. Chernow, op. cit., 48.
12. “Sam Walton: Bargain Billionaire,” from the Biography series on the Arts & Entertainment network, December 2, 1997.
13. Chernow, op. cit., 174.
14. Walton with Huey, op. cit., 50–51.
15. Ibid., 5.
16. Trimble, op. cit., 147.
17. Walton with Huey, op. cit., 127.
18. Sharon Reiter, “CEO of the Decade: Sam M. Walton,” Financial World, April 4, 1989.
19. “Small-Town Hit: Sam Walton’s Wizardry,” Time, May 23, 1983.
20. Nelson Lichtenstein, “Wal-Mart: A Template for Twenty-First Century Capitalism,” in Wal-Mart: The Face of Twenty-First Century Capitalism, 18.
21. Walton with Huey, op. cit., 169.
22. Bethany E. Moreton, “It Came from Bentonville: The Agrarian Origins of Wal-Mart Culture,” 79, in Wal-Mart: The Face of Twenty-First Century Capitalism.
23. Michael B. Dugan, Arkansas Odyssey, 496.
24. Austin Teutsch, The Sam Walton Story, 115.
25. John Huey, “Will Wal-Mart Take Over the World?” Fortune, January 30, 1989.
26. Walton with Huey, op. cit., 127–28.
27. The richest of them all might have been Sue Cox, who worked as a fabric cutter at the store in Harrison from the day it opened in 1964 until 2004, when she retired with $17 million (the sum included the retirement nest egg of her late husband, also a Wal-Marter).
28. Walton with Huey, op. cit., 131.
29. Huey, op. cit.
30. Walton with Huey, op. cit., 159.
31. Ibid., 159–60.
32. Ibid., 170.
33. Ibid., 52.
34. Stephen Taub, “Gold Winner,” Financial World, April 15, 1986.
35. Huey, op. cit.
36. Walton with Huey, op. cit., 50–51.
37. Bob Ortega, In Sam We Trust, 62.
38. Walton with Huey, op. cit., 91.
39. Wendy Zellner, “O.K., So He’s Not Sam Walton,” BusinessWeek, March 16, 1992.
40. Ortega, op. cit., 130.
41. Walton with Huey, op. cit., 80.
42. “A Discounter Sinks Deep Roots in Small-Town U.S.A.,” BusinessWeek, November 5, 1979.
43. Walton with Huey, op. cit., 199.
44. Don Soderquist, The Wal*Mart Way, 16.
45. Susan Zimmerman, “Wal-Mart Opens First Supercenter,” Supermarket News, March 7, 1988, 1.
46. Sam Walton with John Huey, Made in America, 8.
47. Ortega, op. cit., 214.
48. Interview by author, September 20, 2004.
49. Wendy Zellner, “Mr. Sam’s Experiment Is Alive and Well,” BusinessWeek, April 20, 1992.
50. Brent Schlender, “Wal-Mart’s $288 Billion Meeting,” Fortune, April 18, 2005.
51. Bill Saporito, “A Week Aboard the Wal-Mart Express,” Fortune, August 24, 1992.
52. Walton with Huey, op. cit., 163.
53. Ibid., 116.
54. Ortega, op. cit., 220.
55. Christiana Cheakalos, “More Than Just a Billionaire; Residents of Arkansas Town Say Goodbye to a Dear Friend, Sam Walton,” Atlanta Journal and Constitution, April 8, 1992.
CHAPTER FOUR: SO HELP THEM, SAM
1. Interview by author and Wendy Zellner, September 16, 2003.
2. Hank Gilman, “The Most Underrated CEO Ever,” Fortune, March 21, 2004.
3. Robert Slater, The Wal-Mart Decade, 87.
4. Sandra J. Skrovan, “Wal-Mart 2010,” Retail Forward, December 2004, 30.
5. Bill Thomas is a pseudonym. Ellen Israel Rosen, The Quality of Work at Wal-Mart, unpublished paper, 7.
6. Sam Walton with John Huey, Sam Walton: Made in America, 137–38.
7. Rosen, op. cit., 27.
8. Walton with Huey, op. cit., 137.
9. Ibid., 137.
10. Interview by author, May 25, 2005.
11. Bob Ortega, “Life Without Sam: What Does Wal-Mart Do If Stock Drop Cuts into Worker Morale?” Wall Street Journal, January 4, 1995.
12. Andrea Harter, “Billionaire Bud Walton Dies at 73, Co-Founded Wal-Mart,” Arkansas Democrat-Gazette, March 22, 1995.
13. Ann Zimmerman, “Wal-Mart Boss’s Unlikely Role: Corporate Defender-in-Chief,” Wall Street Journal, July 26, 2005.
14. Wendy Zellner, “Someday, Lee, Wal-Mart May All Be Yours,” BusinessWeek, November 15, 1999.
15. Ann Zimmerman, op. cit.
16. Mike Troy, “A Tribute to Tom Coughlin: A Legacy of Leadership,” Drug Store News, February 14, 2005.
17. Alex Daniels, “Thomas Martin Coughlin,” Arkansas Democrat-Gazette, December 29, 200
2.
18. Liza Feathersone, Selling Women Short, 67.
19. Bob Ortega, In Sam We Trust, 210.
20. Interview for author by Chris Lydgate, October 4, 2005.
21. Barbara Ehrenreich, Nickel and Dimed: On (Not) Getting By in America, 184.
22. John Dicker, The United States of Wal-Mart, 30.
23. Lee Scott, “Wal-Mart and California: A Key Moment in Time for American Capitalism,” 4.
24. Kris Hudson, “Wal-Mart Investors Fret Over Costs,” Wall Street Journal, October 25, 2005.
25. Interview for author by Millie Org, October 22, 2005.
26. Interview for author by Millie Org, October 17, 2005.
27. Ellen Rosen, “How to Squeeze More out of a Penny,” Wal-Mart: The Face of Twenty-First Century Capitalism, 248–49. Kate Moroney is a pseudonym for a worker currently employed by Wal-Mart.
28. Steven Greenhouse, “In-House Audit Says Wal-Mart Violated Labor Laws, New York Times, January 13, 2004.
29. Steven Greenhouse, “Labor Dept. Is Rebuked Over Pact With Wal-Mart,” New York Times, November 1, 2005. Also see Greenhouse, “Wal-Mart Agrees to Pay Fine in Child Labor Case,” New York Times, February 15, 2005.
30. Ann Zimmerman, “Big Retailers Face Overtime Suits As Bosses Do More ‘Hourly’ Work,” Wall Street Journal, May 26, 2004, A1.
31. Steve Greenhouse, “Workers Assail Night Lock-In by Wal-Mart,” New York Times, January 18, 2004.
32. Steven Greenhouse, “Middlemen in the Low-Wage Economy,” New York Times, December 25, 2003.
33. Steven Greenhouse, “Illegally in U.S., and Never a Day Off at Wal-Mart,” New York Times, November 5, 2003.
34. See Ann Zimmerman, “After Huge Raid on Illegals, Wal-Mart Fires Back at U.S.,” Wall Street Journal, December 19, 2003.
35. Steven Greenhouse, “Wal-Mart to Pay U.S. $11 Million in Lawsuit on Immigrant Workers,” New York Times, March 19, 2005.
36. Victor Zavala et al. v. Wal-Mart Stores, U.S. District Court, New Jersey, 03-Civ-5309 (JAG), First Amended Class Action Complaint and Jury Demand, p. 21.
37. Brad Seligman, “Patriarchy at the Checkout Counter: The Dukes v. Wal-Mart Stores, Inc. Class-Action Suit,” in Wal-Mart: The Face of Twenty-First Century Capitalism, 236–37.
38. Scott, op. cit., 3.
39. Richard R. Drogin, “Statistical Analysis of Gender Patterns in Wal-Mart Workforce, 2003, 17. www.impactfund.org.
40. Reed Abelson, “Suing Wal-Mart but Still Hoping to Move Up,” New York Times, June 23, 2004.
41. Dana Knight, “Wal-Mart Plaintiff Tells Story,” Indianapolis Star, August 22, 2004.
42. 2005 Wal-Mart Stores Proxy Statement, 16. http://www.walmartstores.com/ Files/2005Proxy.pdf.
43. Bill Bowden and Lance Turner, “Wal-Mart Tells Employees to Take a Break,” Arkansasbusiness.com Daily Report, June 4, 2004.
44. “Wal-Mart Details Progress Toward Becoming a Leader in Employment Practices,” company press release dated June 4, 2004.
45. Edward Klump, “Retailer’s Insurance Coverage Analyzed,” Arkansas Democrat-Gazette, October 25, 2005.
46. Susan Chambers, “Supplemental Benefits Documentation,” Board of Directors Retreat FY06. http://www.walmartfacts.com/docs/1436_benefitswhitepaper_352137437. pdf.
47. Abigail Goldman and Lisa Girion, “Wal-Mart Memo Blurs Its Message on Benefits,” Los Angeles Times, October 27, 2005.
AMERICA’S FIRST FAMILY OF DISCOUNTING
1. Based on a share price of $49.04, on November 10, 2005.
2. July 2005 estimate, The World Factbook 2005, the Central Intelligence Agency.
3. Based on a dividend of 60 cents per share, as voted by the board of directors on March 3, 2005.
4. Community Publishers Web site: http://www.commpub.com/history.html.
5. Ibid.
6. Evan Silverstein, “Wyoming Church Holds Memorial Service for Wal-Mart Heir,” Presbyterian News Service, July 1, 2005 http://www.pcusa.org/pcnews/2005/05351.htm.
7. Jim Hopkins, “Wal-Mart Heirs Pour Riches into Reforming Education,” USA Today, March 11, 2004.
CHAPTER FIVE: WAL-MART’S WAR AGAINST THE UNIONS
1. Adam Fifield, “She Was Fired from Wal-Mart for ‘Insubordination,’” Philadelphia Inquirer, December 26, 2003.
2. Karen Olsson, “Up Against Wal-Mart,” Mother Jones, March/April 2003.
3. Sam Walton with John Huey, Sam Walton: Made in America, 129–30.
4. Bob Ortega, In Sam We Trust, 106–7. See also Rhonda Owen, “Wal-Mart Employees Seek Teamsters Union,” Arkansas Democrat, October 11, 1981.
5. Ibid.
6. Steven Greenhouse, “At a Small Shop in Colorado, Wal-Mart Beats a Union Once More,” New York Times, February 26, 2005.
7. Leonard Page, “New Directions for the Next National Labor Relations Board,” 2001 L. Rev. M. S. U.-D.C.L, Vol. 4: 1063.
8. Unless otherwise noted, all of Lehman’s quotes in this chapter are from interviews with the author on September 19 and 20, 2004, or March 18–20, 2005.
9. Ron Browning, “Class Consideration Given to Wal-Mart Case,” The Indiana Lawyer, March 12, 2003.
10. Although the restraining order applied nationwide, it was authorized by a local Benton County judge named Donald Huffman. Judge Huffman was forced to recuse himself after the UFCW complained that he owned $700,000 in Wal-Mart stock. Even so, the TRO remained in force for eight months, until it finally was dissolved by an Arkansas state court judge in Fort Smith.
11. Interview with author, February 13, 2004.
12. Interview with author, August 23, 2005.
13. Interview with author, September 19, 2004.
14. The UFCW embarrassed Bentonville into overruling Roberts on the sticker issue by encouraging Sam’s Club customers to send protest e-mails directly to Lee Scott. Jay Allen, Wal-Mart’s senior vice president for corporate affairs, crafted a statement that avoided any mention of the UFCW. “We are mindful about what our associates put on their name badges, as we want our customers to see clearly the name of the associate serving them,” Allen wrote. “Thus, we encouraged our associates to utilize other parts of their work attire to show their patriotism.”
15. Cora Daniels, “Unions vs. Wal-Mart,” Fortune, May 3, 2004.
16. Decision of Keltner W. Locke, Administrative Law Judge, National Labor Relations Board, Division of Judges, Atlanta Branch Office, JD (ATL)-37-03.
17. Steven Greenhouse, “Trying to Overcome Embarrassment, Labor Opens a Drive to Organize Wal-Mart,” New York Times, November 8, 2002.
CHAPTER SIX: WHEN WAL-MART COMES TO TOWN
1. Kenneth E. Stone, “Impact of the Wal-Mart Phenomenon on Rural Communities,” published in Increasing Understanding of Public Problems and Policies (Farm Foundation), 2.
2. Sam Walton with John Huey, Sam Walton: Made in America, 182–83.
3. Basker’s shopping list consisted of a bottle of Bayer aspirin, a carton of Winston cigarettes, a two-liter bottle of Coca Cola, a box of Tide, a box of Cascade, two different-size boxes of Kleenex, a bottle of Johnson’s baby shampoo, a bottle of Alberto VO5, a tube of Crest or Colgate, an Arrow man’s dress shirt, a pair of Levi’s 501-505 jeans, a pair of Docker men’s khakis, a three-pack of Fruit of the Loom briefs, and a three-pack of the lowest priced boy’s briefs in the store.
4. Emek Basker, “Selling a Cheaper Mousetrap: Wal-Mart’s Effect on Retail Prices,” University of Missouri Working Paper No. 04–01, March 2005, 31.
5. N. Currie, A. Jain, “Supermarket Pricing Survey,” UBS Global Equity Research, 2002.
6. Emek Basker, “Job Creation or Destruction: Labor-Mart Effects of Wal-Mart Expansion,” University of Missouri, March 2004, 17.
7. David Neumark, Junfu Zhang, and Stephen Ciccarella, “The Effects of Wal-Mart on Local Labor Markets,” unpublished paper, November 2005, www.globalinsight.com/publicDownload/genericContent/neumark.pdf.
8. Kenneth E. Stone, “Impact of Wal-Mart Stores and other Mass Merchandisers in Iowa,
1983–1993,” Economic Development Review, Spring 1995, 6.
9. Interview with author, September 15, 2005.
10. Jon Bowermaster, “When Wal-Mart Comes To Town,” New York Times, April 2, 1989.
11. Stone, “Impact of the Wal-Mart Phenomenon on Rural Communities,” 14.
12. Shortly after Stone released his first study in 1988, he appeared before a Chamber of Commerce group in Ottumwa, where Wal-Mart had just opened a store. The manager of the store interrupted Stone’s speech from the floor, angrily accusing him of fabricating his figures. A few days later, he again passed through Ottumwa and decided to check out the new store incognito. Stone removed his tie, left his suit jacket in the car, yet was recognized by the manager the moment he walked through the door. “Say,” the manager said threateningly. “I told Mr. Sam about you.” Stone did not doubt it, for he had already fielded a barrage of complaints from Bentonville, not from Sam himself, but from Rob Walton, Wal-Mart’s general counsel.
13. Kenneth E. Stone, “The Effect of Wal-Mart Stores on Businesses in Host Towns and Surrounding Towns in Iowa,” Iowa State University, November 9, 1988, 1.
14. Interview with author, September 15, 2005.
15. Stone, “Impact of Wal-Mart Stores and Other Mass Merchandisers in Iowa,” 1983–1993, 25.
16. Interview with author, September 15, 2005.
17. Bob Ortega, In Sam We Trust, 166.
18. Philip Matters and Anna Purinton, “Shopping for Subsidies: How Wal-Mart Uses Taxpayer Money to Finance Its Never-Ending Growth,” Good Jobs First, May 2004, 7.
19. Ibid., 17.
20. Bowermaster, “When Wal-Mart Comes to Town.”
21. Walton with Huey, op. cit., 110.
22. Steve Bishop, “Death of a Town,” Dallas Morning News, January 26, 1992.
23. Peter T. Kilborn, “When Wal-Mart Pulls Out, What’s Left?” New York Times, March 5, 1995.
24. Eve M. Kahn, “Thinking Inside the Big Box,” New York Times, May 12, 2005.
25. Dennis Romero, “Walling Off Wal-Mart,” City Beat, December 24, 2003.
26. Gayle Pollard-Terry, “Rallying Around Wal-Mart,” Los Angeles Times, April 24, 2004.
27. Interview with author, April 15, 2004.
28. Fox owned the Fox Theatre at 115 North Market and United Artists owned the United Artists Inglewood Theater at 148 North Market. Fox took over the UA theater and operated both for a time.
29. Nancy Cleeland and Abigail Goldman, “The Wal-Mart Effect; Grocery Unions Battle to Stop Invasion of the Giant Stores,” Los Angeles Times, November 25, 2003.