Too sexy for Wal-Mart ad executive heads to reality TV originally appeared on BloggingStocks on Wed, 16 Jul 2008 15:59:00 EST. Please see our terms for use of feeds.

Wal-Mart and Julie Roehm end legal battle originally appeared on BloggingStocks on Mon, 05 Nov 2007 11:00:00 EST. Please see our terms for use of feeds.

You may have noticed that Wal-Mart (NYSE: WMT) has been struggling a bit of late. But not to worry, the company has a strategy to get things back on track. It is going to focus on low prices.

According to the Associated Press, Wal-Mart launched a new ad campaign on Wednesday, emphasizing how consumers can save money by shopping at the stores. This comes in the wake of the company's failed foray into fashion. The tag line for the campaign will be "Save Money. Live Better." I shudder to think how much an advertising firm was paid to come up with that one. If her private life is any indication, you have to think Julie Roehm could have come up with something edgier.

Stephen Quinn, Wal-Mart's chief marketing officer, said this in a statement: "The new advertising tells the same story we have told since day one, how we are working hard to save people money so they can live better."

But don't people already get that Wal-Mart can be a good way to save money? I mean, I would hope that people aren't shopping at the stores for the ambiance and customer service! The reason that Wal-Mart tried the whole Metro 7 line was that the "Always low prices. Always." story was no longer driving strong growth in the United States. The Metro 7 venture has failed, but that doesn't mean a new focus on Wal-Mart's one redeeming factor (even if it is a big one) will revive growth.

[photo ILoveMyPiccolo]

Wal-Mart's (WMT) new strategy: Low prices? originally appeared on BloggingStocks on Thu, 13 Sep 2007 10:30:00 EST. Please see our terms for use of feeds.

As Wal-Mart Stores Inc. (NYSE: WMT) turns to late-night TV to try to boost its image, the Julie Roehm scandal continues to produce negative publicity, regardless of whether Ms. Roehm is telling the truth. A few days ago, Bloomberg reported that the company was facing a lot of pressure to reach a settlement with Roehm, and put an end to the rumors and innuendo.

Last month, Roehm called for the departure of CEO Lee Scott and others she accuses of violating the company's ethics policy. Some worry that a continuation of the battle with Ms. Roehm could lead to more damaging allegations which, regardless of their verity, could further harm the company's reputation.

In retrospect, there's almost no question that Wal-Mart should have settled the suit months ago, when Roehm was seeking approximately $1.5 million in salary and punitive damages. But now that the issue has been grabbing headlines for so long, a settlement could be seen as an admission of wrongdoing, and could generate even more negative publicity.

At this point, Wal-Mart is in a tough position. If Scott and others truly believe they're innocent of any wrongdoing, is it better to let the legal process run its course, regardless of the headlines generated in the interim? Would a settlement put an end to the negative publicity?

The issue really seems to hinge on what else Ms. Roehm has up her sleeve. If accusing Scott of buying a ring from a vendor was all she's got, then they may not want to settle. But if there's more to come in subsequent legal filings, a settlement is probably in the company's best interests.

Should Wal-Mart settle Roehm lawsuit? originally appeared on BloggingStocks on Sun, 03 Jun 2007 10:10:00 EST. Please see our terms for use of feeds.

The Julie Roehm scandal at Wal-Mart (NYSE: WMT) is getting petty to the point of being goofy. The Wall Street Journal (subscription required) reports that CEO Lee Scott recently purchased a diamond ring from the Aaron Group, a wholesale supplier of jewelry to Wal-Mart. The company didn't disclose the details of the purchase, but did say that Scott hadn't received any preferential pricing. A Wal-Mart spokesperson jumped to Scott's defense, saying that he is "subject to the same ethics policy as any other associate and has not violated either the spirit or the letter of Wal-Mart's ethical standards."

The Bentonville retailer has a very strict ethics policy prohibiting its employees from receiving anything free from suppliers. The only thing interesting about this is that the Aaron Group is a maker of "popular priced jewelry" so it would seem like an unusual place for Scott to buy jewelry. But who knows.

The bad news for Wal-Mart is that this is just more bad publicity, however inane it is. I'm sure that they're regretting not settling Roehm's lawsuit a long time ago.

Wal-Mart CEO bought ring from vendor! originally appeared on BloggingStocks on Wed, 30 May 2007 20:44:00 EST. Please see our terms for use of feeds.

Julie Roehm's Wal-Mart scandal: The great sidetrack originally appeared on BloggingStocks on Tue, 29 May 2007 16:25:00 EST. Please see our terms for use of feeds.

Wall-Mart's (NYSE: WMT) Julie Roehm scandal just won't seem to go away. Every time it finally seems like it's out of the headlines, it comes roaring back in an even more scandalous incarnation. This time, Roehm is accusing CEO Lee Scott and other top executives of violating the company's code of ethics. She claims that they accepted all kinds of perks from suppliers and engaged in inappropriate relationships.

Of course Wal-Mart fired back denying the allegations. Financier Irwin Jacobs, whose companies do business with Wal-Mart, denied Roehm's suggestions that his relationship with Scott had been too personal and that it had violated the company's code of ethics. However many have been questioning Jacobs' integrity since his days as a corporate raider in the 1980's, and his apparently close relationship with Mr. Scott may raise eyebrows -- guilt by association for both of them.

It will be interesting to see how this story plays out. Ms. Roehm's allegations continue to get more serious and, regardless of whether they're true, they've diverted a lot of the company's attention away from the serious issues that the company is facing.

This got me to thinking: Wal-Mart has been struggling to match Target's (NYSE: TGT) success in fashion, partly because it couldn't convey an edgy image to entice fashionistas. So here's an idea: Given Julie Roehm's relationship with a former colleague, and the salacious details surrounding it that have emerged in the media, maybe Wal-Mart should bring her back to spice things up on the fashion front. As Sarah Gilbert noted, Julie Roehm was too sexy to succeed as an advertising executive at Wal-Mart. But perhaps she's just sexy enough to make the company's clothing hip.

Wal-Mart should bring Julie Roehm back originally appeared on BloggingStocks on Sun, 27 May 2007 13:18:00 EST. Please see our terms for use of feeds.

File this under Julie Roehm: avenger. The PR food fight between Wal-Mart Stores, Inc. (NYSE: WMT) and its former marketing communications chief just got more interesting. I don't know why she picked late Friday afternoon on a get-away-weekend to launch her latest missive but according to the Wall Street Journal, Julie Roehm is alleging that WMT executives violated its ethics policy by accepting discounts on yachts, diamonds and personal gifts from vendors.

To put this into perspective, here's a recap of the rounds so far:

1. Wal-Mart fires Roehm alleging she accepted gifts from an advertising agency that was later chosen to handle WMT's ad account (12/06).
2. Roehm countersues WMT for breach of contract (12/06).
3. In a countersuit, WMT releases salacious details about an alleged affair Roehm had with a subordinate -- Sean Womack -- accusing her of misusing WMT travel funds on business trips with him. The suit cites one e-mail purportedly sent to Womack by Roehm as saying: "I think about us together all of the time. Little moments like watching your face when you kiss me." (3/07).

And today's round goes to Roehm, who alleges that WMT CEO H. Lee Scott, received "preferential prices" on yachts and "a large pink diamond for his wife" through his relationship with Irwin Jacobs. One of Jacobs's companies, Jacobs Trading, has the exclusive right to buy unsold WMT merchandise.

Continue reading Julie Roehm strikes back, claims Lee Scott violated ethics

Julie Roehm strikes back, claims Lee Scott violated ethics originally appeared on BloggingStocks on Fri, 25 May 2007 17:24:00 EST. Please see our terms for use of feeds.

Welcome to the twelfth installment of The Wal-Mart Weekly, a new weekly column dedicated to bringing you insight, wit, facts, results, opinions and just a bit of everything else when it comes down to a very hot topic these days: Wal-Mart.

Continue reading The Wal-Mart Weekly: the retailer's security 'farce'

The Wal-Mart Weekly: the retailer's security 'farce' originally appeared on BloggingStocks on Fri, 18 May 2007 10:45:00 EST. Please see our terms for use of feeds.

Wal-Mart's shareholder meeting coming up originally appeared on BloggingStocks on Wed, 09 May 2007 12:14:00 EST. Please see our terms for use of feeds.

Wal-Mart is working hard to crack down on unscrupulous employees. According to the New York Times:

Over the last five years, Wal-Mart has assembled a team of former officials from the C.I.A., F.B.I. and Justice Department whose elaborate, at times globetrotting, investigations have led to the ouster of a high-profile board member who used company funds to buy hunting equipment, two senior advertising executives who took expensive gifts from a potential supplier and a computer technician who taped a reporter's telephone calls.

Wal-Mart's efforts to keep an eye on its employees -- as evidenced in the Julie Roehm scandal -- go far beyond what most employers do. And the company's efforts to keep out unions are legendary. While there's certainly nothing wrong with working hard to monitor the performance and integrity of employees, it's hard to jive the company's hardline stance on these issues with their inability to keep their parking lots safe, issues involving managers denying employees overtime and forcing them to work off the clock, labor issues at factories in third world countries, and the company's use of illegal immigrants to clean its stores at night (granted, Wal-Mart did not hire those people themselves, they had hired a contractor).

Perhaps if Wal-Mart officials attack these scandals which are bringing the company so much negative publicity with the same vigor they used to investigate Julie Roehm's love-life, they can do a lot to better the retailer's image?

Wal-Mart strongly enforces its own rules but still struggles to keep parking lots safe? originally appeared on BloggingStocks on Thu, 29 Mar 2007 16:28:00 EST. Please see our terms for use of feeds.

Julie Roehm says Wal-Mart charges invalid -- one for the obviousness files originally appeared on BloggingStocks on Thu, 29 Mar 2007 14:35:00 EST. Please see our terms for use of feeds.

Fired marketing exec accuses Wal-Mart of smear campaign originally appeared on BloggingStocks on Thu, 29 Mar 2007 13:45:00 EST. Please see our terms for use of feeds.

In December, Wal-Mart Stores Inc. (NYSE:WMT) fired its advertising chief, Julie Roehm, for having an inappropriate affair, accepting gifts from suppliers, and extending business trips to spend more time with Sean Womack, a married Wal-Mart VP, at the company's expense. Now, this is exciting stuff.

Ms. Roehm sued the company for wrongful termination and the company counter-sued [subscription required] her for "using company-paid travel to conduct a torrid affair with a junior executive, of accepting meals and liquor from companies competing for its business, and pursuing a job with one bidder, Interpublic Group of Cos.' DraftFCB."

According to one email (released by Mr. Womack's wife!), Womack wrote, "I feel the need to be inside of your head if I cannot be near you." Ms. Roehm replied, "I think about us together all the time." Eek. She was an advertising executive. You'd think she could have come up with something more creative. Perhaps this explains Wal-Mart's inability to attract the more upscale demographic that Target Corp. (NYSE:TGT) is successfully reaching.

Sex, bribes, and lawsuits in Wal-Mart land originally appeared on BloggingStocks on Wed, 21 Mar 2007 14:21:00 EST. Please see our terms for use of feeds.

According to Reuters and Adage.com, Wal-Mart Stores, Inc. (NYSE:WMT) has assigned its $580 million account to The Martin Agency and Mediavest. The move comes a few weeks after Wal-Mart fired senior marketing executive Julie Roehm.

The move is a victory for Martin parent Interpublic Group. One of its agencies, FCBDraft, had lost the business when the account was thrown into review after Ms. Roehm's departure. Odd as it may seem, Wal-Mart never gave a full accounting of the marketing leader's departure or the need for the review.

Interpublic has been hit by a number of defections at its operating ad agencies, and the stock has only recently come back from a sharp sell off this summer.

For Wal-Mart, the challenge will be directing the new marketing partners to get customers back into the world's largest retailer's US stores. The flagging sales in the company's home market have dropped the stock price 12% over the last two years while the Dow is up over 15%.

Douglas A. McIntyre can be reached at 24/7 Wall St.

Wal-Mart signs a new ad agency originally appeared on BloggingStocks on Fri, 12 Jan 2007 17:16:00 EST. Please see our terms for use of feeds.

Tomorrow, two advertising agencies that previously threw their hats into the ring for the massive $570 million Wal-Mart account will once again kneel before the world's largest retailer and beg for another chance. They vie with several others approaching the behemoth for a first chance. Whatever happens, it will be an ugly courtship, given recent events.

With one agency fired and one vowing to never talk to Wal-Mart again, that leaves the playing field a little messy. The two agencies that previously competed for Wal-Mart's business -- Ogilvy & Mather and the Martin Agency -- should be quaking in their boots a little tomorrow.

Is Wal-Mart Stores, Inc. (NYSE:WMT) moving too quickly and too haphazardly to try to clean up its big advertising mess? By some accounts, yes. The Roehm debacle just happened and Wal-Mart appears to not even have acknowledged it. Maybe it's just too embarrassed by it's huge marketing gaffe.

New ad agency pitches coming tomorrow to Wal-Mart originally appeared on BloggingStocks on Wed, 20 Dec 2006 15:57:00 EST. Please see our terms for use of feeds.

Continue reading DraftFCB did "nothing wrong" in recent Wal-Mart pitch

DraftFCB did "nothing wrong" in recent Wal-Mart pitch originally appeared on BloggingStocks on Mon, 18 Dec 2006 13:55:00 EST. Please see our terms for use of feeds.

What Wal-Mart did to turn off an ad agency hopeful originally appeared on BloggingStocks on Fri, 15 Dec 2006 09:43:00 EST. Please see our terms for use of feeds.

Where is Wal-Mart's $580 million ad account going? originally appeared on BloggingStocks on Wed, 13 Dec 2006 12:57:00 EST. Please see our terms for use of feeds.

Wal-Mart's marketing scandal leaves ad agency fluttering originally appeared on BloggingStocks on Mon, 11 Dec 2006 16:45:00 EST. Please see our terms for use of feeds.