NYT Reports Pay-Offs, Followed by Cover-ups, at Retailer’s Highest Levels In Mexico and U.S.

Walmart Free NYC Says Latest Allegations Prove Walmart Can’t Be Trusted To Play By the Rules; Urges New York Lawmakers to Conduct Sweeping Investigation Into Retailer’s Practices, including Charitable Contributions

New York- Following major breaking news that Walmart de Mexico “perfected the art of bribery” to expedite its growth in Mexico, knowingly concealed the information from authorities, Walmart Free NYC today urged New York lawmakers to conduct a comprehensive investigation into the retailer’s charitable and political giving, and its land use records. The company promoted the alleged mastermind- Eduardo Castro Wright- from the Mexico subsidiary to oversee all U.S. stores.

According to former Walmart de Mexico executive, Sergio Cicero Zapata, as reported by the New York Times:

“Mr. Cicero recounted how he had helped organize years of payoffs. He described personally dispatching two trusted outside lawyers to deliver envelopes of cash to government officials. They targeted mayors and city council members, obscure urban planners, low-level bureaucrats who issued permits — anyone with the power to thwart Wal-Mart’s growth. The bribes, he said, bought zoning approvals, reductions in environmental impact fees and the allegiance of neighborhood leaders.”

“Mr. Cicero said that while bribes were occasionally paid before Mr. Castro-Wright’s arrival, their use soared after Mr. Castro-Wright ascended to the top job in 2002. Mr. Cicero described how Wal-Mart de Mexico’s leaders had set “very aggressive growth goals,” which required opening new stores “in record times.” Wal-Mart de Mexico executives, he said, were under pressure to do “whatever was necessary” to obtain permits.

“In an interview with The Times, Mr. Cicero said Mr. Castro-Wright had encouraged the payments for a specific strategic purpose. The idea, he said, was to build hundreds of new stores so fast that competitors would not have time to react. Bribes, he explained, accelerated growth. They got zoning maps changed. They made environmental objections vanish. Permits that typically took months to process magically materialized in days. “What we were buying was time,” he said.”

The A1 article is available here: http://www.nytimes.com/2012/04/22/business/at-wal-mart-in-mexico-a-bribe-inquiry-silenced.html?_r=1&hp

Walmart Free NYC spokeswoman Stephanie Yazgi today issued the following statement:

Walmart’s growth strategy is to win at all costs. In Mexico, that meant years of corruption and bribery that bought support from key community leaders, silence from elected officials, and expedited zoning permits from city planners. The policy flourished under Eduardo Castro Wright, who instead of being punished for his actions, received several promotions- he’s now overseeing Walmart’s U.S. stores.

Now, in Walmart’s aggressive campaign to enter to NYC, we’re supposed to believe the retailer is playing by the rules? Walmart has already spent millions of dollars on charitable donations to neutralize potential opposition and try to win favor with key community players – never mind its outsized spending on lobbying and political contributions. Walmart has refused to participate the city’s public hearings, avoiding any meaningful conversations with New Yorkers, and instead has spent millions of dollars on a PR campaign, with slick mail, and even slicker TV ads.
We now have proof of what we have been saying all along: that this company will stop at nothing to increase their bottom line. New York will not stand for a company as duplicitous as Walmart coming into our city. Its actions in Mexico prove that Walmart refuses to play by the rules, and communities pay the price. Its recent behavior means that we must be hyper vigilant about any potential deals or developments involving Walmart and that they and their intermediaries be held to the highest levels of scrutiny possible.

We’re calling for an immediate investigation both locally and federally into Walmart’s campaigns to enter NYC. Every stone must be unturned. Small businesses deserve it, consumers deserve it, communities and residents across the boroughs deserve it.

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WALMART THREATENS NYC’S ENVIRONMENTAL PROGRESS AND GREEN DEVELOPMENT

WalmartFreeNYC Calls on “Green” Mayor Bloomberg and “Green” Developer Related Companies to Withdraw Support for Walmart, Following Revelations of Walmart’s Devastation of the Environment

New York, New York-Seizing on powerful evidence found in Top 10 Ways Walmart Fails on Sustainability, a new joint report from the Institute for Local Self-Reliance and Food &Water Watch, WalmartFreeNYC today warned in advance of Earth Day that Walmart stores in New York City would undermine the sustainability initiatives of the Bloomberg administration and mega-developer the Related Companies.

Pointing out that the scope and magnitude of Walmart’s failures would jeopardize initiatives associated with PlanNYC and green development, WalmartFreeNYC called on Mayor Bloomberg and Related Companies CEO Steven Ross to withdraw support for Walmart as New Yorkers celebrate Earth Day this weekend.

The Top 10 report has evidence showing that Walmart’s negative environmental impact has worsened in recent years: the company is selling more low-quality and harmful products, multiplying its volume of waste and pollution, lagging on renewable energy, increasing greenhouse gas emissions, consuming more land, bankrolling anti-environment candidates, industrializing the food system, undermining local producers, and harming the economic health of workers in many communities around the country. What is revealed here builds upon a similar recent study, Walmart’s Greenwash, released in March.

“With such far-reaching failures on sustainability, including financial support for climate change deniers, Walmart is already undermining Bloomberg’s environmental reforms, and Ross’s green developments,” said Stephanie Yazgi, director of Walmart Free NYC. “Bloomberg and Ross should stand up to Walmart.”

Mayor Bloomberg laid out an ambitious sustainability agenda on Earth Day in 2007 called PlaNYC. One of his biggest PlaNYC achievements since then, reducing greenhouse gas emissions by 12%, would be at risk if Walmart entered the city, because Walmart’s greenhouse gas emissions are rising: “Between 2005 and 2009, Walmart’s reported emissions in the U.S. grew by roughly 7 percent. The company says its operations produced 21 million metric tons of greenhouse gases in 2009, and it expects 13 million metric tons of cumulative growth in emissions by 2015,” according to Walmart’s Greenwash.

In 2008, Mayor Bloomberg launched as part of PlaNYC “one of the most comprehensive and inclusive strategies ever launched to secure a city’s critical infrastructure against the effects of climate change” and yet Walmart has funded climate change deniers. Some of Walmart’s largest political donations have gone to powerful climate-change deniers. Since 2005, Walmart’s PAC has given $25,000 to House Speaker John Boehner, R-Ohio (“the idea that carbon dioxide is a carcinogen that is harmful to our environment is almost comical”; $30,000 to Sen. Roy Blunt, R-Mo. (“there isn’t any real science to say we are altering the climate path of the earth”; and $29,500 to Sen. John Boozman, R-Ark, according to Walmart’s Greenwash.

Meanwhile, the Related Companies, which has reportedly been in talks with Walmart about leasing space in New York City, is a national leader in green development. The mega-developer has been honored by the United States Green Building Council for developing some of the first green buildings. According to its own vision statement, the Related Companies “will lead the market in environmentally-conscious real estate development and operations and will be at the forefront of sustainable industry.”

“If New York City wants to sustain a high quality of life for working people, residents, and local communities, Walmart cannot open stores here. Walmart has a proven record of destroying the environment, job quality, retail industry standards, and businesses. The great destroyer of our time takes away far more than it ever gives or creates, and that’s why we continue to oppose Walmart,” said Stuart Appelbaum, President of the Retail, Wholesale and Department Store Union (RWDSU), UFCW.

“Walmart uses it’s dominance in the marketplace to impose unsustainable practices on food producers,” said Eric Weltman, Senior Organizer for Food & Water Watch in New York. “If allowed in New York City, Walmart would undermine efforts to create a healthier and more fair food system. Walmart has sent mailers to city residents featuring images of organic apples, but there’s nothing healthy or appetizing about what the company really stands for.”

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Blunder Draws Fire From New Yorkers Angry About the Retailer and its Developer’s Repeated Failures to Address Community Concerns

New York- New Yorkers today are pouncing on a gaffe first reported in yesterday’s LA Times by Walmart spokesman Steve Restivo, who in response to an LA Council proposal designed to preserve the character of the Chinatown neighborhood said: “It speaks volumes that the community was not consulted in the writing of the motion.”

Walmart, and its rumored ENY developer Related Companies, has repeatedly refused to meet with New Yorkers and discuss its plans for New York City.

• Walmart skipped multiple public hearings held by the New York City Council in 2011
• Related Companies agreed to discuss its Gateway II proposal with the East New York Community Board, only to cancel 20 minutes before the meeting was slated to start.
• Related Companies refused to meet with community leaders on multiple occasions – not responding to multiple requests via letter and in-person visit.
• Walmart held a secret meeting in Brooklyn and refused to allow councilmembers and members of the community board to attend.
• Walmart CEO and company board members won’t even grant a meeting with their own associates, even after asked multiple times by OUR Walmart members.

New Yorkers agreed this is just the latest example of Walmart and Related saying one thing, and doing another.

“Will the real Walmart please stand up?” asked Nieves Padilla, Organizer at Make the Road New York. “New Yorkers have a right to know who they’re dealing with- the Walmart that claims to value public participation, or the Walmart that has refused it time and time again. And Related Companies has shown they’re no better.”

“Yet again Walmart is showing its true colors- it talks a good game, but that talk rarely matches reality.” said Wanda Salaman, Executive Director of Mothers on the Move.

“Funny that in Los Angeles, Walmart wants ‘community input’ while in New York they hold closed door meetings with a hand selected audience and refuse to participate in Council hearings. Our communities want to know how Walmart will ensure that the jobs they ‘create’ won’t simply destroy local businesses.” said Maritza Silva-Farrell, Senior Organizer at ALIGN.

“Walmart claims to care about community input, yet here in NYC they’ve consistently refused to participate in public forums and hearings,” said Lorna Blake, East New York leader of NY Communities for Change. “What’s worse, their  developer Related Companies backed out of a meeting with the community board 20 minutes before it was scheduled to happen. And what do you know, they’ve refused to reschedule.”

“The disregard for community input that officials at Walmart and Related have demonstrated is fueling more  distrust,” said Stephanie Yazgi from Walmart Free NYC. “They’ve shown on too many important issues that they’re just looking for the best sound bite to grow their bottom line.”

The group agreed Walmart and Related Companies can’t be trusted to keep their promises- and New Yorkers should think twice before welcoming the mega-retailer.

At Bank of America Conference, Group Warns of Trouble Ahead for Retail Giant

As Walmart Chief Financial Officer Charles Holley prepares to share key company insights in his keynote address this morning at the Bank of America Merrill Lynch 2012 Consumer and Retail Conference, members of Walmart Free NYC were on-hand raising concerns amongst investors about the company’s financial troubles, including disappointing same store sales in the US compared to competitors like Target, Costco and Kroger.
At the core of Walmart’s 2012 comeback strategy is an aggressive expansion into urban markets- a risky move, considering the company’s slow pace of expansion, which has been hampered by strong community opposition.

“We want investors to know that we’re here for the long haul,” said Stephanie Yazgi, a spokeswoman for Walmart Free NYC. “We know that after many disappointing sales slumps, Walmart is desperate to enter New York City. But it’s made and broken a lot of promises to communities across the country, and we’re not going to let it get away with the same thing here.”

“New Yorkers don’t want to see hard working mom and pops pushed out, and all the negative impacts a Walmart would have on our vibrant City. That’s why we’re here today, and why we’ll continue to talk to lawmakers, media, clergy, and community groups about Walmart’s track record of broken promises,” Yazgi continued.

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This week, as the largest food retailer in the United States released its fourth quarter earnings, community leaders in New York gathered to call attention to the company’s business model, which squeezes farmers, workers and processors, and drives food production to become more consolidated and industrialized. While Walmart has been busy promoting itself as the solution to lack of access to healthy food in urban communities, the message from City Hall today was loud and clear: Walmart is not the answer and they are not wanted in New York City.

“Plunking down a big-box store in the middle of a community with a lack of access to healthy food will not solve this complicated problem,” said Food & Water Watch Executive Director Wenonah Hauter. “Selling fruit and vegetables is one step, but all communities, especially those that are struggling financially, will be better served for the long term by local businesses that put money back into the community by paying livable wages and buying from local and regional suppliers and farmers whenever possible.”

“This report shows Walmart has been a source of tremendous harm and devastation to workers, businesses, and communities across the country,” said Stuart Appelbaum, President of the Retail, Wholesale and Department Store Union (RWDSU), UFCW. “Walmart is a great destroyer, not the great savior it claims to be. We are working with a large coalition to keep Walmart out of New York City.”

“Walmart can’t fix the food system, just like it can’t get our communities out of poverty,” said Matt Ryan, Executive Director of ALIGN. “It is ultimately the source of the problem, not the solution.”

“I don’t believe for one second that Walmart cares whether or not I have fresh vegetables; their bottom line is opening more stores and making money,” said East New York resident Maria Maisonett.

“Part of the challenge to ending hunger in our communities is creating a sustainable food system that provides affordable, healthy food while also paying a living wage to food producers and other workers in the food system,” said Mark Dunlea, Executive Director of the Hunger Action Network of NYS. Walmart unfortunately is a major factor in the corporate consolidation of our food supply, making it harder for local farmers and communities to make a decent living, while also pushing out other food retailers. Too much of Walmart’s publicity about support local and organic foods is a marketing devise rather than supporting a truly local, decentralized, environmentally sound, sustainable food system.”

“Brooklyn doesn’t need a Walmart to eat more healthy food. It needs local businesses, paying fair wages, and a focus on a stronger sustainable regional supply chain,” said Benjamin Solotaire, a volunteer with the Brooklyn Food Coalition.

“It is no surprise that the Food & Water Watch report shows how Wal-Mart is not a solution to food deserts but the actual problem,” says Food Chain Workers Alliance organizer Diana Robinson. “Whether it be from factory workers in Bangladesh to warehouse and retail workers in the United States, Wal-Mart has a proven record of committing labor rights violations with its own employees. Because of Wal-Mart’s dominance in the retail market, it drives down the prices that it pays its suppliers, which, in turn, drives down wages and working conditions throughout the food supply chain. 20 million people in the U.S. work in the food system, and many of the low-wage food workers live in food deserts because they cannot afford to live in neighborhoods with reasonable access to affordable fresh and healthy food. It’s a vicious cycle that needs to be stopped. Wal-Mart’s business practice of super low wages and super low prices is not the answer to food desserts.”

The report and more information about Food & Water Watch’s campaign to stop Walmart from selling Monsanto’s GE sweet corn can be found at www.foodandwaterwatch.org. If you would like a PDF of the report sent to you, contact Rich Bindell at Rbindell@fwwatch.org, 202-6832457 or Darcey Rakestraw at drakestraw@fwwatch.org, 202-683-2467.

“Food for Thought: A Case Study of Walmart’s Impact on Harlem’s Healthy Food Retail Landscape”, a new report from the Manhattan Borough President’s Office, shows the potentially devastating impact that a Walmart at 125^th Street and Lenox Avenue in Harlem would have on local fresh food retailers within a one-mile radius. Modelled after a Chicago study that found that 40% of competing businesses closed within two years of a Walmart opening, “Food for Thought” projects closures of up to 66 small, fresh food retailers within the first two years. That translates into a loss of approximately 202,000 square feet of fresh food retail. The report argues that these closures could potentially undo the laudable work of the City’s FRESH and Healthy Bodega Initiative programs, which have expanded opportunities to buy healthy food in underserved areas.

“We’ve worked hard to be able to offer fresh food to Harlem.  This report shows what we have always feared about Walmart coming to New York – that it would put hard-working businesses like mine out of business and make it harder for Harlem residents to get healthy food,” said Luis Corona, owner, Fine Fare supermarket.

“I’ve had supermarkets in Harlem for almost 30 years, helping make sure the community gets fresh, healthy food.  I’m glad that Manhattan Borough President Scott Stringer is standing up for Harlem residents by showing what would happen if Walmart came to our neighborhood – making it harder for us to get healthy food.  It’s clear that New York City just doesn’t need Walmart,” said Ruben Luna, owner, Key Food supermarket

“We cannot close our eyes to the destructive impact a Walmart store would have on small business owners and the retail food landscape of Harlem, or any other New York neighborhood,” said Borough President Stringer, who spoke at a press conference in Harlem along with local small business owners, healthy food advocates and other community leaders. “Our study shows that the opening of only one Walmart store could have a damaging effect on small business owners and others who provide healthy food and produce to neighborhoods that need it more than ever.”

“New York City has launched crucially important programs to expand the number of retailers offering healthy food, but it’s clear that a new Walmart would work at cross-purposes, canceling out gains we have already made and threatening small business owners,” the Borough President continued. “That’s why we must think long and hard before welcoming such a retailing behemoth into our neighborhoods. The time to begin these conversations is now.”

The Borough President’s report was influenced by a 2009 Loyola University study that tracked, over a three year period, business closures around a newly opened Walmart store in Chicago. Food for Thought created a similar local case-study by considering what would happen if a Walmart were to open in New York City. The report focused on a currently vacant parcel of land at West 125th Street and Lenox Avenue in Harlem, which has been the subject of media and community discussion as a potential Walmart site, especially because of its “as of right” development status. Original survey data was collected measuring the number of fresh food retailers within a one-mile radius of this land parcel; 24 supermarkets, 17 green grocers, and 157 bodegas were identified. This data was analyzed through the lens of the Chicago study, which found that 25 percent of all competing businesses within a one-mile radius of the new Walmart had gone out of business within the first year. By the second year, the closure rate was 40 percent. Using those projections, anywhere from 30 to 41 fresh food retailers in Harlem could go out of business within the first year, with an additional 18 to 25 stores could shutter for a total loss of 48 to 66 stores in the second year after the opening.

The closure of more than 50 fresh food retailers would have enormous consequences for the food economy of Northern Manhattan. Healthy neighborhood food systems require a diversity of fresh food purveyors, especially in New York.

The Borough President’s study also examines Walmart’s well-documented history of predatory pricing, and wage suppression that leads to high numbers of employees reliant on public assistance, a burden on taxpayers in states across the country. A study by UC Berkeley’s Labor Center found that Walmart workers in California earn 31 percent less than the average for workers at other large retail companies and require 39 percent more in public assistance.

“As supporters of community-driven initiatives that are improving good food access by increasing local food distribution and local control, we strongly object to a Walmart presence in NYC,” said Jacquie Berger, Executive Director of Just Food. “Bringing Walmart to NYC would not only damage local retailers and wage-earners, but would erode the great advances communities are making to increase access to affordable, fresh, healthy food.”

The report puts forward a number of recommendations for mitigating potential damage from a Walmart opening in Harlem:

• Pro-Active Planning: If Walmart selects a site in New York, the city should create a proactive planning process that would include an analysis of the healthy food infrastructure and the potential negative impact on residents’ healthy food options.
• Expand FRESH: In order to provide support for existing and struggling fresh food retail, FRESH could be expanded. The expansion would include fresh food retailers under 6,000 square feet, the current FRESH limit, and would provide incentives not just to retailers wishing to expand or open new stores, but to retailers who need a reduction in their tax burden or financing to stay in business.
• Provide Permanent Funding for the Healthy Bodegas Initiative (HBI): Funding for HBI is renewed on an annual basis leaving the program in limbo each year. The Administration should baseline funding in DOHMH’s budget for this important initiative. Additionally, as in the pilot phase of the program, HBI could provide incentives to bodegas to improve their healthy food offerings.
• Support the Creation of Farmers’ Markets: Farmers’ markets are a critical component of any healthy food system. The MBPO continues to advocate for expanded City support of all types of farmers’ markets, as detailed in the office’s reports Red Tape, Green Vegetables: A Plan to Improve New York City’s Regulations for Community-Based Farmers Markets and FoodNYC: A Blueprint for Sustainable New York.
• Increase the Number and Quality of Indoor Food Markets: As recommended in FoodNYC, City agencies should evaluate vacant and underused space, buildings, and lots in order to identify appropri­ate locations for new indoor markets.
• Make Urban Farming a City Priority: As recommended in Red Tape, Green Vegetables and FoodNYC, the City should make urban food production a priority. Two strategies for encouraging urban agricul­ture are ensuring the permanence of community gardens and creating an urban agriculture program.

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The Village Voice previewed De Marrais’ CMJ show, saying, “The former Rainer Maria frontwoman has a new solo album coming next month, Red Coats, and it reduces her old band’s emo-rock blare to a quieter roar, surrounding de Marrais’ uncommonly expressive singing with tense little clicks and buzzes, slyly destabilizing where Rainer Maria once aimed to knock off socks.”

The NY Times also previewed the show, marking it as a recommended pick: “Ms. De Marrais, the former lead singer of the breezy indie-rockers Rainer Maria, offers sparse, elegiac pop in solo repose.” In addition, The Times Arts Beat blog picked up a Tweet from a raving fan.

Time Out NY calls her an “effortlessly stylish indie crooner.”

WHO: Caithlin De Marrais, formerly of “indie rock icons” (SPIN) Rainer Maria

WHAT: ‘Red Coats’ album release show

WHEN: 7:30, November 2, 2011

WHERE: Union Hall, 702 Union Street (at 5^th Avenue), Brooklyn, NY

TICKETS: $8 in advance, $10 at the door

WalmartFreeNYC is a diverse coalition of residents, activists, and elected officials committed to protecting local businesses, creating good jobs, and supporting artistic communities. For more information, visit www.walmartfreenyc.org or www.facebook.com/walmartfreenyc

A number of media outlets have covered the work of WalmartFreeNYC.

Here is a recent feature article in The Brooklyn Rail:

www.brooklynrail.org/2011/07/local/no-place-for-walmart

Yellowbirds, featuring Sam Cohen of Apollo Sunshine; and Lindsay Sullivan will open.

For more information on Caithlin De Marrais, please contact Nick Loss-Eaton at nick.losseaton@gmail.com or 718.541.1130.

http://endup.org/artists/caithlindemarrais

http://www.facebook.com/pages/Caithlin-De-Marrais/26699514677

Crowd Tells World’s Richest Retailer It Must Keep the Promises it Made in Other Cities Before It’s Welcome in NYC

New York- Walmart workers came to Liberty Park today to speak to Occupy Wall Street protesters about their campaign to win fair wages and working conditions for Walmart’s 2.1 million associates worldwide.

“We’re here today to let the people at Occupy Wall Street know that Walmart’s associates stand with them, we are the 99%” said Walmart worker Girshriela Green. “For too long Walmart has pushed its associates around and its time we got the dignity and respect we deserve.”

The workers are helping to build grassroots support for Walmart Free NYC’s campaign to hold Walmart accountable for their past statements and promises- promises the richest retailer in the world has broken time and again broken in urban expansion markets similar to New York City, according to a new report released by Making Change at Walmart.

The report, which can be found here, explains that:

• Walmart promised an African-American community leader that workers at one Los Angeles store  would be making $13 an hour, but workers report that in reality many make less
• Academics estimated that if consumers paid an additional .46 cents per shopping trip, it would allow Walmart to offer a minimum wage of $12 an hour
• Walmart associates often delay or forgo medical care altogether because they can’t get the time off or can’t afford the treatment
• 65% of all Walmart associates in 2001 were women, yet they made up only 33% of salaried management

“Walmart’s glitzy and expensive PR campaign won’t tell New York that they promised Los Angeles jobs and then never delivered, or that they promised higher wages than fell way short. We need to hold Walmart accountable, and that is what we are doing today,” said Stephanie Yazgi, Director of Walmart Free NYC. “We need Walmart to be held accountable for their past promises and need them to finally treat their workers with respect.”

After speaking to the people gathered at Zuccotti Park, the workers and Occupy Wall Street protestors marched on Walmart’s New York City Headquarters to demand the company keep its promises to workers in other cities before it’s allowed in to New York City.

In addition, the Walmart workers also met with key stakeholders in New York City to discuss Walmart’s many labor related issues and why the retail giant needs to be reformed. The workers are from a worker organized organization called OUR Walmart: Organization United for Respect at Walmart that stands up for their rights.

The workers

Girshriela Green: Girshriela Green is flying across the country tomorrow to tell New Yorkers about her experience working for the world’s richest retailer in Los Angeles- where her working-class community was courted by Walmart’s promises of hundreds of good jobs, much like East New Yorkers are now—but those promises failed to materialize. Girshriela was hired as a sales floor associate making $8.20 / hour. After three promotions, she makes $9.80 an hour, far less than the $13 an hour Walmart executives promised an African-American community leader in LA, and now, in New York.

Kenny James:  Kenny James is a former Walmart Support Manager from Renton, Washington. Kenny was on the management track, but chose to step down when he was told that in order to move up into higher management, he had to treat associates more poorly. Kenny has for several years tried to make Walmart a better place to work by educating associates, addressing unfair policies and challenging Walmart to do right by its associates. Kenny is a leader in Organization United for Respect at Walmart and is hopeful for the future of equality, respect and fairness at Walmart.

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New York -The Stonewall Democratic Club of New York City, a top LGBTQ organization, slammed Walmart today following an explosive New York Times article that revealed the retailer’s e-commerce operation, through the company’s relationship with a marketing affiliate, has been helping to bankroll groups that actively oppose LGBTQ rights. (See New York times, “Retailers Are Put On Spot Over Anti-Gay Aid”, September 25, 2011)

“We are alarmed and offended by the news that Walmart is funneling money to well-known anti-gay groups and disrespecting so many LGBTQ Americans,” said Joseph Hagelmann III, President of the Stonewall Democratic Club of New York City, the largest and oldest LGBTQ political club in the city.

“Walmart is spending millions to win over New York City residents, but its officials have never reached out to us and have never marched with us,” Hagelmann continued. “Now we know why. Walmart’s actions and record on LGBTQ issues are simply indefensible. Walmart is a threat to New York City, the historic home of the LGBTQ movement, and we continue to oppose Walmart opening stores here.”

Walmart has long failed to support the LGBTQ community. Among the most disturbing facts:

Walmart Has Flunked National Tests of How Well It Treats LGBTQ Employees

Walmart Recently Allowed a Supervisor to Humiliate and Shame a Gay Employee

Walmart Does Not Adequately Protect Its Transgender Employees

Walmart Has Sold Anti-Gay Children’s Books in Many of Its Stores

Walmart’s Poor LGBTQ Record Stands Out Among Fortune 500 Companies

Walmart’s Current CEO Has Opposed Gay and Lesbian Adoption

“Walmart’s awful LGBTQ history is a problem that money and corporate spin can’t solve,” said Stephanie Yazgi, Director of the Walmart Free NYC campaign. “Walmart NYC’s campaign needs to tell their corporate offices back in Bentonville to sever all ties with groups that want to roll back decades of gains in LGBTQ rights. Walmart clearly does not share New York’s values. If the company did, it would not be helping to fund groups that want to trample on the rights and dignity of New York’s LGBTQ community.”

These reactions come as Walmart is reportedly desperate for growth in New York City and possibly looking to build more than 150 stores across the five boroughs, according to a major new study.

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Walmart Looking at NYC to Offset Declining U.S. Stock Price, Stagnating Growth

New York, NY –“The Walmartization of New York City,” a new study released today by ALIGN, a New York-based nonprofit organization, reveals that Walmart’s growth plans for New York City could lead the company to open an estimated 159 stores here, most of them smaller format stores designed for urban areas, a finding consistent with Walmart’s oft-repeated declaration that it is evaluating opportunities for new stores across the five boroughs.

It is the first study of its kind analyzing retail market share data, industry analyst reports, and Walmart’s own financial reports in order to show the large-scale roll out the company is likely planning in New York City and to explain the likely economic impact.

It looks closely at Walmart’s market share in the grocery industry across the U.S. and rigorously calculates the minimum number of stores Walmart would likely need to build in New York City in order to reach a corresponding level of market share here.

The study estimates that the economic impact of this Walmartization on NYC could be devastating:

A net loss of 3,980 jobs throughout New York City

The loss of $353 million in wages for retail workers whose jobs remain

Taxpayers footing a $4 million bill for health care benefits for 4,279 new Walmart workers

“Walmart is desperate for growth in New York City, because the company has saturated most non-urban U.S. markets and its U.S. stock has been stagnating,” said Josh Kellerman, an ALIGN researcher who co-authored the study with Stephanie Luce, an economics professor from CUNY. “But a few NYC stores will do little to address its weak economic outlook. So the company is looking to open many stores throughout NYC and control a significant portion of the largest consumer market in the U.S.,” he said.

As part of its campaign to enter New York City, Walmart spent over $2.1 million in lobbying expenses in the first half of 2011, six times as much as it spent in the last four years combined, the study shows. Meanwhile, over the last twelve months, Walmart’s stock has significantly underperformed competitors such as Costco and Kroger, primarily because its same store U.S. sales (a key economic indicator in the retail industry) have declined for nine consecutive quarters.

“This study makes it clear that what’s good for Walmart is not good for New York City,” said New York City Public Advocate Bill de Blasio. “Millions of dollars worth of advertising can’t sweep Walmart’s record of killing jobs and small businesses under the rug. We have to protect our city’s middle class from companies that actively undermine it.

According to the study, Walmart has saturated non-urban U.S. markets to such a degree that it is beginning to cannibalize sales at its own stores. So it is now focusing on growth in urban markets it had once ignored. Walmart’s CFO, Michael Fung, recently pointed out that “Wal-Mart has twice the opportunity to grow in Los Angeles or New York than the opportunity in India and China combined.”

Eduardo Castro Wright, Walmart’s Vice Chairman, stated in 2009 that Walmart stood to increase its sales between $80 and $100 billion through expansion into urban markets.  New York City, as the largest consumer market in the U.S., likely represents the largest portion of this growth strategy.

Walmart’s share of the US grocery market is 21%.  Reaching that same level of market share in New York City’s dense retail environment would likely require 159 Walmart stores of varying sizes. The study estimates it would be 114 of the new Walmart Express stores averaging 15,000 square feet, 34 Walmart Markets averaging 35,000 square feet, and 11 Supercenters averaging 100,000 square feet. (See the study’s detailed methodology section for more information on how the calculations and estimates were developed.)

“Walmart has made lots of promises about creating jobs and investing in communities, but the company’s rhetoric doesn’t match reality,” said Reverend David Dyson of the Lafayette Avenue Presbyterian Church. Given its power and influence, Walmart has an obligation to answer questions about its long-term impact on New York City. Walmart is hiding behind talking points, but New Yorkers see through the spin and want answers.”

About ALIGN

ALIGN: The Alliance for a Greater New York’s mission is to create good jobs, vibrant communities, and an accountable democracy for all New Yorkers. Our work unites worker, community, and other allies to build a more just and sustainable New York. For more information, please visit www.alignny.org

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