FAYETTEVILLE, ARK.: Wal-Mart Stores Inc. announced a $15 billion share buyback program at its annual shareholders meeting on Friday, as the world’s largest retailer faces increasing scrutiny from investors over how it has handled allegations of bribery in its Mexican operations that surfaced a year ago.
Wal-Mart Stores Inc. brought the usual star power to its annual shareholder meeting, with X-Men and Les Miserables star Hugh Jackman hosting and singer John Legend entertaining.
But the festivities took a serious turn as shareholders in the audience stood to make proposals related to safety in Bangladeshi factories, Walmart’s Mexican bribery scandal and executive paychecks.
The company is facing pressure to increase its oversight of factory conditions abroad after a building collapse in April in Bangladesh that killed more than 1,100 garment workers.
The retail discounter, based in Bentonville, Ark., is also under scrutiny for how it treats its workers.
Those problems are happening as Wal-Mart Stores Inc. is wrestling with slower sales growth.
The meeting at the University of Arkansas at Fayetteville’s Bud Walton Arena attracts thousands of investors and has historically had the air of a giant pep rally. Jackman opened the event by singing a rendition of Oh, What a Beautiful Morning.
“I have never been up this early in my entire life. 7 a.m.?” quipped Jackman. Later, he complimented the crowd on their cheering and said he might call his next Broadway show Sam’s Club.
As usual, the legacy of the company’s founder Sam Walton loomed large.
“The values and culture of this company are timeless and universal,” said Robson Walton, chairman of the board and Sam’s son.
Protesters were expected, but more than an hour into the meeting, none had taken place.
“We may be joined by folks who want to disrupt this meeting,” Walton said.
The $15 billion share repurchase program replaces the current $15 billion share repurchase program begun in 2011. About $712 million is left under that program, Chief Financial Officer Charles Holley said.
U.S. Walmart stores account for 59 percent of the company’s total sales, which reached $466.1 billion for the year ended Jan. 31, excluding revenue from membership fees from its Sam’s Club division.
Walmart is trying to tailor merchandise to clusters of stores that attract similar shoppers. At its Sam’s Club division, which has seen its small-business members increasingly strapped, it’s lowering prices on key items. Overseas, it’s working to increase profitability and sales in such markets as China and Brazil.
Walmart is trying to answer labor-backed critics by coming out with a three-part plan the company says can help jump-start the economy. In January, the company said it will hire more than 100,000 veterans in the next five years, spend $50 billion to buy more American-made merchandise in the next 10 years and help its part-time workers move into full-time positions.
Walmart said earlier this week that 12,000 veterans have applied for the program since Memorial Day.
Also, it is now selling towels made in Georgia in 600 of its 4,000 namesake stores.
