Wal-Mart Stores, Inc. (NYSE: WMT) is not resting on the recent bad news that millions of defective toys from Mattel, Inc. (NYSE: MAT) and Fisher Price were sold in its stores. As such, the world's largest retailer has now said that it will re-examine safety reviews from designers and manufacturers of the toys, as well as increase the independent testing it performs on the toys.This is a good move for Wal-Mart, and if any retailer does not follow suit and create some kind of program to put toys it carries through rigorous testing as well, then it probably does not deserve your business. It's true that toy makers should have already eliminated problems with toys that led to recalls, but retailers are the last bastion before those products reach consumers. Think about it this way: are you a Wal-Mart customer or Mattel customer? My guess is that you answered Wal-Mart, and that fact makes the retailer in need of a review process for toy items it stocks on its shelves.
According to Wal-Mart, it will be requiring toy manufacturers to re-submit testing and safety documentation for toys already on store shelves to try and prevent any possible recalls that could stem from toys already in distribution. In other words, there could be toys in need of a recall sitting on shelves right this second. Wal-Mart will be double-checking the results of submitted safety documentation and will also be upping the number of toys tested at independent labs by an average of an additional 200 toys every single day. Said Laura Philips, Wal-Mart's toy merchandise manager, "Reassurance is really our key point." There you have it.
Click here for Mattel toy recall news
Peter Cohan: Is China hurting Disney's (DIS) reputation?
Sarah Gilbert: Mattel's third toy recall: Parents response ho-hum, could Barbie survive?
Zac Bissonnette: Toys 'R' Us joins the recall club -- and how you can capitalize
Michael Fowlkes: More children's products join the Chinese recall list
Beth Gaston Moon: Mattel (MAT): Looking into the latest recall
Michael Fowlkes: Chinese executive found hanged following Mattel (MAT) toy recalls
Hilary Kramer: Mattel, Inc. (MAT): Buy or sell after recall?
Tom Taulli: Mattel toy recall: Lessons for business owners











Reader Comments (Page 1 of 2)
8-24-2007 @ 12:05PM
roudy11z said...
I'm proud to see such a positive piece by Brian concerning Wal-Mart. Overall Wal-Mart "ain't " so bad after all maybe? I will share with you later a true story about some of Wal-Mart's good works nobody hears about or is willing to write about.
8-24-2007 @ 10:56PM
cliff corson said...
one question from the original article does bother me a bit
walmart says they will increase the number of toys tested around 25% to 50% or about 200 toys a day.
now the question is this is it about 25% to 50% or is it about 200 toys?
if the number percent is towards the 25% trhat isn;t much of an increase but if it is towards the 50% it seems much better. walmart has a tendesy to sue vague numbers and terms to make themselves look better.
consider the article in which Lee Scott claims that walmart and 3 detergent manufacturers will roll out concentrated laundry detergents. It isn't just walmart but all retailers getting the concentrated items but only walmart is the one tooting their horn about it
cliff
8-30-2007 @ 2:27PM
Scott said...
Obviously we are talking about toys, but what about all the other products that Wal-Mart imports from China. Let's not forget that there could be hundreds of other products that do not meet american safety standards or are manufactured in facillities that meet american standards. I understand Wal-Mart is trying to bring us the lowest prices always, but we must be aware that these products made in Asia will not be of quality and most of all meet our safety standards.
I do applaud Wa-Mart for taking the extra precaution on the toys, but I'm afraid there are many othe products that may be posing some type of danger.
8-30-2007 @ 2:31PM
val said...
well that;s what we get for not buyihng stuff from the usa.we have to save the jobs here in states.
8-30-2007 @ 3:14PM
Jerry said...
Here is an idea for Wal-Mart. Start buying products from anywhere but China, perhaps even USA. What ever happened to their add campaign years ago flaunting America and its products?
8-30-2007 @ 3:36PM
Andrea said...
Good Idea!! Buy American. Unfortunately Americans want it both ways. They want high wages and cheap prices. The twain doesn't meet in the middle. So in reality how many Americans will pay more to create jobs here. I will, but I am a minority. Most people will buy the cheapest item on the shelf and think it won't matter to the economy of our Country. WRONG!! Get smart people and start helping Americans not some foreign nation who never did or will do anything for us.
8-30-2007 @ 3:48PM
Karie said...
I have to say, it is a terrible thing, that it has ended up the responsibility of the retailer to test end use products.
Lab testing, company reliability research and follow up supervision of the making of products for safety, should be done long before it hits the shelves of any retailer. I am not standing up for Wal Mart or any other company, but feel this was and IS the responsibility of the Manufacturer. If more items were made here in the USA and not so far away, a closer observation of workmanship, materials and workplace practices, would be capable.
We have so many rural areas in our country, that are in desperate need of factories for our young to work in, that choose not to go on to college. So many families that cannot make it on one salary and need work. All this country has left to offer them is, Giant retail stores (that they can't afford to buy from) and restaurants (they can't afford to eat at). The Pay is nearly always min wage and located in difficult locations to get to. An auto is needed (no mass transit in the rural area) and Gas prices eat up any small amount they do make.
Wake up Wally Shoppers...if we buy what is made outside our country, we are encouraging the perpetuation of our own demise.
We need and want these factories back here in the USA. We need the jobs to make the money to pay our Mortgages and Taxes and buy food to put on the table and God know the energy bills.
8-30-2007 @ 3:49PM
joey said...
i wanna know how much wal-mart paid aol to write this article.
8-30-2007 @ 4:36PM
tom said...
do you really think wal mart cares about any one in the usa they will sell the cheepest just fm anywhere they they can find it,to keep ther profits up and destroying anerican jobs,,, i have not been into a wal mart in over 20 yrs,,,, and thay are an all american store....bull,,,,, ther just out for them selfs and care not for any american....low pay no benyfits....no over time pay .....just look at the law suites they have lost in the courts,,,, and you will really know how much they care
8-30-2007 @ 4:53PM
bff2frenflamingo said...
Thank you Nafta and the free trade agreements to save the asses of Mattle and the coorporations.
8-30-2007 @ 4:55PM
Joseph Leslie said...
WalMart may step up inspections, but the Chinese Manufacturers will also work to find ways to beat the inspections. The Chinese Manufacturers have no intention of conforming to our standards (look at the re-used chopsticks!). We are trying to make legitimate businessmen from con artists!
The best thing to do is take your business elsewhere.
There are other countries that have low wages (the Philippines, Thailand, Haiti, the Dominican Republic, South Africa), but that have learned that QUALITY CONTROL means REPEAT BUSINESS!
8-30-2007 @ 5:16PM
john spanburg said...
Let me explain how buying large quantities of products from China works with these big companies like Mattel and Wal-Mart. They have people, american company representitives, on site working with the Chinese. They give the Chinese brockers or direct manufacturing plants their specifications and samples of the products they want made and quoted. They then receive samples back in the US for their inspection. They then make a deal to produce these products and their company people in China supervise the production. They are even allowed in the plants to supervise production practices and technics. They also will send their company engineers to show the Chinese plant personnel how to produce their products. For these companies to receive products with lead based paints and other problems and then act like they are shocked this could happen is laughable. They are not going to make this large of an investment in China and let it go unsupervised. Think about it!
8-30-2007 @ 6:15PM
wangyen said...
Ok, let Uncle Sam does it. Send Made in USA perfect products at a price Chinese can afford. Let Uncle Sam works, Chinese lives with leisure.
8-30-2007 @ 6:25PM
Mary said...
Sadly the "good works" from WalMart have only come after their dirty deeds have been exposed. This is a company that could make a huge difference around the world, in areas that governments ignore: decent working conditions, fair wages, health care, humane treatment.
If they set up the rules and implemented good working practices, major changes for good would happen.
8-30-2007 @ 6:28PM
Nathan Paul Farley said...
I believe that the U.S. government should step in and oversee the inspections for now on. Why? Not just Because of all the recalls but because of what happened to me.
I bought a "KIDS SWING" from Walmart in Martinsburg, WV back in May OF THIS YEAR. The "kids swing" came with safety straps connected to it made out of NYLON. Just 3 weeks ago my son brought one of the safety straps that was supposed to be "SECURELY CONNECTED" but after I inspected the NYLON strap and the ones still connected, I realized that it was turning into powder in hands. THIS WAS A NYLON SAFETY STRAP. MY CHILDREN ARE 3YRS AND 15 MTHS. I DEPEND ON THOSE STRAPS AS WELL AS OTHER CUSTOMERS WHO HAVE PURCHASED IT. By the time that I had noticed everything my son and I had already gotten some of the POWDER IN OUR EYES!! I was able to get it out of my sons eyes but I HAD TO GO THE EMERGENCY ROOM to have my eyes flushed because of the BURNING SENSATION in my eyes. After calling walmarts Safety report number THE LADIE HUNG UP ON ME and I still haven't got a call back from them!!
!!SHOP AT K-MART!!
8-30-2007 @ 6:32PM
Texasboy42084 said...
I once worked for Walmart and am strongly reconsidering to try to apply working there again for them.
When I worked there I remember the whole Keep America Business Strong and Reliable and don't outsource to other countries due to the potential danger.
I personally don't know why Walmart even thought about doing any kind of business with China. I do not like China and what they do to us, The People of the United States and down-grading the businesses here.
If our government never went to China to outsource and let them make our things that we rely on, we would not be in this huge mess with toy recalls, recalls on dog food, etc. What's next? Computer Recalls, Tv Recalls, Cell Phone Recalls, Clothing Recalls,etc.?
I say we go to China, take all of our crap outa that country, tell China to kiss off and leave the rest up to them. We need to take back what is rightfully ours and Make everything ourselves and rely on the Farmers, small businesses, etc. here in our country.
I know the founder of Walmart would turn back over in his grave and show a big happy smile if we did that again, in which Walmart was founded and based upon.
8-30-2007 @ 6:34PM
wangyen said...
I read a comment from a Japanese who lives in China for three years. The Japanese said 90% of Chinese products are perfect. Chinese products will be the cheapest and the best if manufacturers are supervised by governments and marvelous business administrators.
8-30-2007 @ 7:05PM
Mike said...
Although Wal-Mart is the biggest culpurt don't forget all the other big companies out their that buy over seas. We the people can not afford to alow the big compaines to sell out the american people for their profits while paying barely above poverty wages. The government has let these big compaines sell us out and so has our own government sold us out. China OWES the U.S. lots of monie for imports and we just sit back and let them get away from paying. Best thing to do start buying american and boycott these compaines that make american goods overseas. Remember it's not the big compaines only making the big money it's also the stockholders as with (i.e.insurance compaines.) The compaines have a Fiducary duty to pay them big bucks while they look for ways to cheat the people of quality service or consumer goods. How about the reports of prescription drugs that were tainted and made over seas. It's about time the fiducary duty works in favor of the consumer safety and quality not just to make the CEO's and stockholders rich.
8-30-2007 @ 7:36PM
charlie said...
WAL-MART IS SCUM! THEY HAVE DESTROYED THE MIDDLE CLASS IN THIS GREAT NATION THAT OUR FATHERS FOUGHT AND WORKED THERE ASSES OFF TO BUILD! IF YOU THINK FOR 1 MINUTE WAL-MART DID'NT KNOW THE FACTS ON THESE PRODUCTS,YOU ARE LIVING IN A DREAM WORLD! TRY TO TAKE A PRODUCT TO MARKET THROUGH WAL-MART! THEY TAKE IT APART,EXAMINE EVERY PIECE AND THEN FIND A CHINESE FACTORY TO KNOCK OFF YOUR IDEA! ANYONE WHO PURCHASES ANYTHING FROM WAL-MART IS HURTING THEMSELVES!
8-30-2007 @ 7:45PM
M. MARJORIE THORNTON said...
Bring all manufacturing back to the USA, make it worth the mfg's time and profit. I would like to be able to purchase clothing in sizes again, instead of S,M,L,XL,1X,2X,3X and etc., especially socks, I hate these stretch things, and they are not good for your toes, if you are diabetic.