January 6, 2006

WAKEUPWALMART.COM HOLIDAY CAMPAIGN EXCEEDS EXPECTATIONS/ WAL-MART REPORTS WEAK SALES AND TRAFFIC DECLINE FOR DECEMBER


NATIONAL PRINT & TV MEDIA CAMPAIGN ACHIEVE RECORD IMPACT
DURING FIVE-WEEK EFFORT

Washington D.C. – Today, WakeUpWalMart.com proudly announced it had exceeded all of its 2005 goals as part of its unprecedented national holiday campaign during the month of December. WakeUpWalMart.com, which officially launched its five-week 2005 holiday campaign on November 25, 2005, or “”Black Friday,”” set three goals: (1) hold 1000 actions at Wal-Marts in at least 25 states; (2) launch a coordinated multimedia campaign in multiple states; and (3) reach 150,000 supporters. By the end of December, WakeUpWalMart.com exceeded all three of its goals.

“”Again and again, Wal-Mart and Lee Scott thought the American people wouldn’t listen to the truth about their poor business practices. Lee Scott was wrong. Wal-Mart’s poor values matter to consumers, and despite Lee Scott’s claims to the contrary, new public relations initiatives in 2006 are not going to solve Wal-Mart’s growing problem. Lee Scott needs to wake up and listen to the American people’s call for Wal-Mart to change into a responsible corporation,”” said Paul Blank, campaign director for WakeUpWalMart.com.

During the five-week holiday campaign, WakeUpWalMart.com supporters held 1,420 actions at Wal-Marts in over 186 cities and towns in 41 states. Over ten thousand WakeUpWalMart.com supporters took park in the weekly actions. WakeUpWalMart.com also reached its target goal of 150,000 supporters two weeks early, and finished the holiday campaign with over 162,000 supporters on December 31st.

As part of the 2005 holiday campaign, WakeUpWalMart.com also successfully executed the most coordinated national multimedia campaign to change Wal-Mart in corporate history. The on-the-ground actions in conjunction with the paid media amplified our message to millions of Americans. The multimedia campaign included print, TV, and online internet advertising: full-page ads ran in the New York Times, USA Today; internet ads ran on over 19 websites; and, 15-second and 30-second TV spots highlighting Wal-Mart’s exploitative business practices and the company’s moral failures ran in multiple states as well.

In contrast to WakeUpWalMart.com’s success, and despite the most aggressive Holiday marketing campaign in Wal-Mart’s history (including the unprecedented use of celebrities, starting their advertising two weeks early and a new price guarantee), Wal-Mart reported same-store sales at the lower end of expectations, posted its worst December sales in five years, and reported an actual decline in store traffic for December. In addition, Wal-Mart also reported its profit expectations for the quarter would come in at the low end of expectations.

Wal-Mart’s poor performance in December also raises serious doubts about the credibility of Wal-Mart’s earlier statements which downplayed the dramatic impact our holiday campaign was having on the choices American consumers were making this holiday season. In response to the holiday campaign in early December, Wal-Mart posted the following statement on WalMartFacts.com:

“”The union leadership’s campaign is failing. Wal-Mart had its best October ever. And with sales growth of 4.3% in November and 10 million people shopping our stores during the first 6 hours of Black Friday, we expect a good Holiday season and feel good about our profit margins. “”

In fact, Senior Vice President Jay Fitzsimmons was the only Wal-Mart executive to publicly hint that Wal-Mart’s December sales might not be as good as their November sales and he was stripped of half of his job title on December 23rd.

“”The reality is Wal-Mart’s poor policies are impeding Wal-Mart’s progress. On issue after issue, paying a living wage, providing affordable health care, equal pay for equal work, no more child labor violations, Wal-Mart is out-of-step with the American people,”” added Blank.

Following the success of the 2005 holiday campaign, WakeUpWalMart.com is determined to build on our momentum and create an even larger movement and successful campaign to change Wal-Mart in 2006. In just nine months, beginning on April 5th of 2005, WakeUpWalMart.com has become one of the fastest growing social movements in America. Over the course of 2005, WakeUpWalMart.com launched over ten mini-campaigns, including “”All I Want for Christmas is Health Care for Mommy,”” “”Black Friday Blitz,”” “”Light a Candle for Change,”” “”Wal-Mart Week,”” “”Nothing’s Scarier than Not Having Health Care,”” “”Send Wal-Mart Back to School,”” “”Make Wal-Mart Care About Health Care,”” “”Stop the Wal-Mart Nazi Ad,”” and “”Love Mom, Not Wal-Mart.””