Wal-Mart's Critics Grow, Raising Questions About CEO Lee Scott
A poll released today by activist group Wal-Mart Watch shows that Wal-Mart’s favorable rating has dropped to 71% since 2005. With the retailer facing criticism about poor stock performance, disappointing sales and the corporate spying scandal, is it time for CEO Lee Scott to go? Jon Ogg, editor at 24/7 Wall Street and Maggie Gilliam, former retail analyst and president of Gilliam & Company, debated the issue today on Power Lunch.
“ ‘Always low prices’ is not supposed to be about your stock price," said Ogg, who believes that Wal-Mart needs a new face. “In the last five years the Dow is up more than 50% off its lows and Wal-Mart’s stock is flat. It’s just not working. Everything they do does not work," said Ogg.
However, Gilliam points out that global sales were up 12%.
“Globally sales were up and sales domestically have been a little disappointing, but there were still up over $16 billion last year in the Wal-Mart division alone," said Gilliam. “I don’t think Lee Scott is on the way out by any stretch of the imagination.”