ROGERS - Wal-Mart has scaled back in some of its international markets, one of them being Mexico, where the retailer has enacted new processes for obtaining building permits. The fast-track method the company once employed led to accusations that executives bribed Mexican officials and resulted in an ongoing investigation into whether the company violated the the Foreign Corrupt Practices Act.
Growth in China was slowed, said Wal-Mart international President and CEO Doug McMillon, because the majority of the supercenters there are located in malls and developers and landlords didn’t have good experience in determining the kind of layouts that attracted customers. In Brazil, Wal-Mart held back mostly on its “ cash-and-carry” format, called Maxxi, he said.
McMillon explained the company’s strategy during a question and answer session for a press corps composed of national and international business writers.
McMillon addressed a number of hot topics during the session, including its connection, though indirectly, to two deadly fires at Bangladesh factories where Wal-Mart products were made. The company has said suppliers unwittingly subcontracted goods made at those factories.
“When we have a relationship with a supplier, we expect that supplier to produce those goods,” McMillon said. “I think it’s important that we have commitments to suppliers that are longer term so they know that they’re going to have business and build the capacity to take care of those workers.”
Accountability is also key, he said.
“If we find someone who is cheating, we have to respond appropriately. Over time, I believe we’ll have an impact on what we’ve seen in our subcontracting that exists in business,” he said.
Thursday’s Q&A also included sessions with Neil Ashe, president and CEO of Global eCommerce; Bill Simon, Wal-Mart U.S. president and CEO; and Rosalind Brewer, president and CEO of Sam’s Club.
Wal-Mart’s annual shareholders’ meeting will begin at 7 a.m. today at Bud Walton Arena in Fayetteville.
About 14,000 employees and retirees are expected to attend.They’re drawn not only for the business meeting, but for the entertainment. Last year’s emcee was Justin Timberlake. Performers included Celine Dion, Taylor Swift and Lionel Richie.
The agenda includes a vote on 14 nominees for the company’s board of directors, a measure to keep Ernst & Young LLP as the company’s independent accountants for another year, to pass an advisory vote on executive compensation and to approve an amended Wal-Mart Stores Inc. Management Incentive Plan. Three directors are rotating off the board: Jim Breyer and Michelle Burns, each with 10 years of service, and Arne Sorenson, who served five years.
Business, Pages 27 on 06/07/2013