Apparently, Wal-Mart (NYSE: WMT) issued no press release when it started to pull two brands of dog food off its shelves. Odd, because they are both made in China.
Added to the tires and toys, drugs and dolls that can't be sold because the Chinese make them too dangerous are two new brands of dog food, Chicken Jerky Strips from Import-Pingyang Pet Product Co. and Chicken Jerky from Shanghai Bestro Trading. The big retailer started taking the bags off shelves on July 26, according to The Wall Street Journal. The paper also reports that "Philadelphia television station WPVI reported last week that a woman claimed her two-year-old Chihuahua died after eating Bestro Chicken Jerky Strips."
Perhaps Wal-Mart has to be careful about what it says. China is viewed as its most important growth market, and going after the Chinese on product quality may not be a terribly good idea. It would be tough if the communists started to chain door at the local superstore.
Also, Wal-Mart already sources billions of dollars of goods out of China each year. It might have to double its US staff to inspect all that stuff.
One way or the other, doing business with China is getting more expensive for Wal-Mart.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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