Walmart Turns on the Charm

walmart-store-front-blueIn an announcement at the major U.S. retail trade show, Wal-Mart Stores Inc. (NYSE: WMT) has said that it will hire at least 100,000 U.S. military service veterans in the next five years and that the company will increase its purchases of U.S.-made goods by $50 over the next decade.

On the jobs front, Walmart will offer a job to any honorably discharged veteran who applies for one in the first year after active duty. The company typically has 15,000 to 50,000 jobs available at any one time.

On the buy-American front, $50 billion over a decade works out to an average of $5 billion a year. Walmart's cost of sales in its last fiscal year topped $335 billion. Sure it's better than nothing, but not by a lot.

Walmart has taken a lot of heat over a deadly fire in Bangladesh at a plant that made clothes for the company. Walmart has also been blasted for its low pay and work practices.

Investors are a little unsure what to make of the announcements. Walmart's shares are up about 0.6% today at $68.68 in a 52-week range of $57.18 to $77.60. In reality, that's probably about the right reaction, given the likely impact on the store's costs from these announcements.


Filed under: 24/7 Wall St. Wire, Consumer Goods, Jobs, Retail Tagged: WMT

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miclynn

What they are not telling you is more than likely at the states min wage and you have to use your veterans medical benefit, they are not giving you medical coverage....cost savings for them.

this way they will reduce the black eyes they get for all the non veterans they been hiring and can't afford insurance. Now when Walmart now does their year end report it will show a larger portion of employees have health insurance, no thanks to Walmart. All this from the Walmart family who have a net wealth of 93 billion dollars. Bet their public relations guy got a bonus for this one.

I think thes veterans would rather be at home retired.

January 15 2013 at 2:22 PM Report abuse rate up rate down Reply