Wal-Mart

Why would Amazon give up its precious tax advantage? This week, as part of an excellent investigative series on the firm, the Financial Times' Barney Jopson reports that Amazon's tax capitulation is part of a major shift in the company's operations.

One of the biggest threats to brick-and-mortar retailers is "showrooming," a practice whereby consumers walk into a store with a smartphone to look at merchandise and then — after making use of the expertise of the store's associates — ultimately make their purchases online from a competitor at a lower price. Retailers are increasingly battling back against showrooming by mimicking the practice — reverse showrooming, if you will. They're encouraging shoppers to whip out their smartphones right in store aisles, but to buy online from them.

The two top executives of Wal-Mart Stores gave shareholders their unequivocal commitment to get to the bottom of alleged bribery charges in Mexico that have surfaced against the company. "If any violations occurred, then appropriate actions will be taken. That is my personal commitment to each of you," S. Robson Walton Jr., chairman, said during the company's annual shareholder meeting here. "We will do the right thing the right way. You have my word on that."

To help brands protect against the chaos that ensues as a result of a data security breach — not to mention the potential lost revenue — Tim Toews, a web security consultant and former chief information officer at Office Depot, offered a 10-step plan to help retailers maintain control of their business space (i.e., their network) and keep hackers out. Toews presented his plan during a session he led this week at the Internet Retailer Conference & Exhibition in Chicago.

With J.C. Penney’s new pricing structure echoing that of Wal-Mart’s EDLP model, the most recent Retail Ratings Reports from BIGinsight indicates both retailers could face challenges when it comes to the women’s clothing category. For years Wal-Mart has led Kohl’s in the category, however, in November of 2011 Kohl’s surpassed the discounter and the two have been tangling for the top position ever since.

U.S. lawmakers are frustrated by the lack of cooperation they've received from Wal-Mart in the investigation of the retailer for alleged bribery in Mexico, a committee staffer familiar with the investigation said. Attorneys for Wal-Mart briefed the committee earlier on Monday about the company's anti-corruption compliance program, the person said. But Wal-Mart hasn't committed to briefing the panel on the substantive allegations raised by a New York Times report, a key request of the committee, said the staffer, who spoke on the condition of anonymity. A Wal-Mart spokesman didn't immediately respond to a request for comment. 

The nation's second largest public pension fund is suing Wal-Mart for breaching its fiduciary duty in connection with allegations that the retailer's Mexico subsidiary engaged in a bribery scheme and the company failed to properly investigate and disclose the matter. The California State Teachers' Retirement System (CalSTRS) filed a derivative action against Wal-Mart in the Court of Chancery in Wilmington, Del., where the retailer is incorporated. The suit claims that Wal-Mart's top management and directors were alerted to evidence that Walmart de Mexico executives were involved in the payment of bribes to expedite the expansion of Wal-Mart stores in Mexico.

Wal-Mart has agreed to pay $4.8 million in back wages and damages to thousands of employees for unpaid overtime after a probe by the U.S. Department of Labor found that the retailer had violated a federal law governing overtime pay. Wal-Mart will also pay $463,815 in civil fines. According to the Labor Department, Wal-Mart failed to pay overtime to certain employees, considering them to be exempt from overtime requirements when they were, in fact, not exempt. Wal-Mart said it has already adjusted its pay practices, determining that back wages should be paid for 3,700 employees in two roles.

Wal-Mart, Target, Kmart and Kohl’s are all celebrating a milestone 50th anniversary this year. It’s hard to believe that all four were founded in the same year, but combined these stores changed the way America shops. Happy birthday to modern retail!

Wal-Mart Stores Inc. stepped up damage control on Tuesday as its shares sank for a second day and the reverberations continued from the retailer's admission that it was investigating allegations of bribery by its operations in Mexico.