Wal-Mart should open "Bat Cave"

Wal-Mart should open "Bat Cave"
Posted Apr 4th 2007 1:35PM by Jonathan Berr
Filed under: Other issues, Consumer experience, Wal-Mart (WMT), Employees, Columns, Target Corp. (TGT)





My fellow bloggers have weighed in on Wal-Mart Stores Inc.'s (NYSE: WMT) "Threat Research" operation, calling it "paranoid" and questioning whether it made any "sense." Let me add a third word to describe this Keystone Cops operation: wasteful.

Wal-Mart has the right to defend itself against criticism. It has the right to make sure that employees aren't violating company policies. But does the world's largest retailer need what its own mini-FBI? No.

The company seems to be worrying more about silencing critics and punishing misbehaving employees more than selling goods that people want to buy. What's funny is that the company's obsessesion with controlling its image and penchant for secrecy seems to continually backfire.

The Wall Street Journal story about the "Bat Cave" make Wal-Mart look petty and cheap at a time when its trying to win back customers that have deserted its stores for Target Corp. (NYSE: TGT) and other competitors. Investors have backed Target as well sending its shares up about 18 percent over the past year compared with 4 percent for Wal-Mart.

Wal-Mart has got to ask itself whether the information it gains from its "threat research" is worth the bad feelings it creates with customers, shareholders and employees. If Wal-Mart wants to repair its reputation, it needs to be more forthcoming about why it does what it does.

Maybe then it won't need a secret 20-person department to investigate threats both real and imagined.













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