Wednesday, April 12, 2006

Wall Street and Wal-Mart

It seems Wall St. thinks Wal-Mart could do better in a couple of areas.

What's more, some Wal-Mart watchers say investors are becoming increasingly frustrated that the company's spending an inordinate amount of time trying to diffuse its public relations crises and not giving enough attention to improving weak spots in its business.

A couple of recommendations include:

Bolster labor relations

As the nation's biggest private employer with 1.3 million workers, Wal-Mart has become an easy target for union-backed groups critical of its pay and benefits.

That means that Wal-Mart needs to make a dedicated and even more visible push to better its relationship with workers, and with communities where it does business.

Attract new customers

Last but not least, Wal-Mart's got to think outside of its "big-box" if its wants to win new customers and rejuvenate growth, said Love Goel, CEO of Growth Ventures, an investment firm focused on retailers.

Why can't Wal-Mart management see these issues?

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