Why Wal-Mart is anxious in this case

With new CEO Mike Duke set to take over from the presiding H. Lee Scott in just over a month, Wal-Mart wants to set aside the current chapter of litigation and start fresh under a new leader. Although the possible $640 million in settlement money is a rather tiny fraction of Wal-Mart's annual revenue run rate (it's less than 0.1%), wiping out all the current lawsuits can work to the retailer's advantage. The details of all 63 individual settlements will be decided in preliminary approval hearings soon.

Wal-Mart's Tom Mars indicated that "many of these lawsuits were filed years ago and the allegations are not representative of the company we are today." This may be true, but Wal-Mart really has not done much to improve its relations with labor watchdogs or employees if you look around. Sure, the company has embraced being green, saving energy and keeping prices low ahead of most other retailers. Has it improved working conditions or pay for non-management in-store employees though? The answer depends on whom you ask.

Wal-Mart is blazing new territory

The world's largest retailer has made it through the first part of the existing financial recession intact and is actually growing sales as almost all other retailers are losing their shirts. In fact, as I've written on extensively here in the past, Wal-Mart's "Save Money. Live Better" slogan really is turning into reality for millions of U.S. shoppers. Gas is cheaper now, Wal-Mart has kept prices steady all the way through the holiday season, and regular (and new) customers are making it the retailer of choice for just about everything in every category it sells.

At the same time, the company is really pushing for more energy efficiency in as many carried product lines as possible while promoting a green lifestyle in many product categories. Wal-Mart, you could say, is on a roll. In many ways, Tom Mars' statement is true: this is a drastically different Wal-Mart than even as recent as 2005. Perhaps it's tired of all these "legacy" lawsuits after all and just wants them behind it? There may be some truth to that -- but Wal-Mart may also want the financial drag of all these lawsuits to come to an end in one moment instead of over a few years as well. In other words, it knows when to pick its battles and when to actually fight them.

2009 and beyond

Wal-Mart, with its million-plus employee count, will never be able to please everyone. There will be more lawsuits and more allegations by critics just due to the fact that Wal-Mart is the 800-lb. labor gorilla in the U.S. with the largest target on its back. Just like Microsoft Corp. (NASDAQ: MSFT), Wal-Mart is so large that it naturally will have enemies and constant allegations of monopolistic behavior. If not in software, then in retail.

Of course, we'll be watching major developments unfold and will track the movements of the retailer. We hope to see you back here regularly in 2009 as the Wal-Mart Weekly continues cranking out material that faithfully and apologetically covers the world's largest retailer, for good or bad.

Until then, have a safe and uneventful New Year and hope to see you back here reading in 2009. Make it a safe 2009!