Wal-Mart Has Lost Its Way

This blog has defended Wal-Mart when it has been deserving of defense, especially in the Maryland “healthcare tax” situation (”Question 1″ at link).

But after reading this Debbie Schlussel post, it’s clear to me that the company has lost its way. The executive appointments Schlussel identifies (Andy Young, who while UN Ambassador in 1979 met with the Palestine Liberation Organization, an act forbidden under US law at the time; and Harriet Hentges, who in addition to what Schlussel cites, appears way to willing to have a “dialog” with terrorists in the Philippines in this 2003 report), and the near white-flag surrender reflected in its policy change (third item at link) relating to “petty” (under $25) shoplifting, are clear indicators of a company that has been cowed by its critics, thinks that the critics can somehow be placated (they can’t), and is losing sight that its first duty is to its shareholders.

Another bad sign: jimmyb at Steve the Pirate notes that the company is limiting gun sales to one store per district (no, I don’t know how big a district is). It’s hard not to see this as a has partial give-in to the anti-gun crowd. The folks at WallyWorld Headquarters in Bentonville, Arkansas, clearly don’t understand that Sarah Brady’s acolytes won’t be satisfied with anything short of a total withdrawal from gun retailing.

The stock is down about 15% in the past seven weeks. I’m not a great stock predictor (and of course what follows should not be construed as financial advice), but based on management’s loss of focus, I don’t think Wal-Mart stock is done going down, or at least underperforming the rest of the market.

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UPDATE: I would also question whether Wal-Mart’s foray into “social networking” is a wise move, or if it has been thought through.

UPDATE 2: Today a US District Judge ruled The Wal-Mart Maryland health-care tax unconstitutional (HT Porkopolis in the comments section below).