Wal-Mart runs ads after publishers complain

updated 2:30 p.m. ET Dec. 8, 2005

SPRINGFIELD, Mo. - Wal-Mart Stores Inc. placed full-page advertisements in 336 Midwestern newspapers after publishers nationally complained they are ignored by the world's largest retailer. The move comes at a time when the company is trying to address accusations it treats workers poorly and drives local shops out of businesses.

The ads, which ran in smaller papers in Missouri and Oklahoma between Nov. 30 and Dec. 6, were a test for a possible change in newspaper advertising policy at Wal-Mart, which publishers say has ignored their dailies and weeklies for years.

"I think it is a good first step. They are such a big economic force in our communities and were not participating in those papers," said Mike Buffington, past president of the National Newspaper Association and editor and co-publisher of the Jackson (Ga.) Herald.

Consideration of an advertising shift comes as the retailer repositions itself on several fronts — particularly community relations. The retailer regularly faces criticism, lawsuits and organized attacks from labor union-backed campaign groups, making it more difficult to open new stores and grow.

Retail and grocery store ads together account for anywhere from 60 percent to 80 percent of revenues for community newspapers, said Brian Steffens, the executive director of the National Newspaper Association.

Grocery stores purchase the bulk of those that advertising, with local grocers often placing full-page ads several times a week. Wal-Mart has grown in recent years to be the nation's largest seller of groceries with the expansion of its supercenter store format, but it generally has not taken out weekly ads to showcase its grocery prices in local newspapers.

"If one local grocery store goes out, a community newspaper loses at a minimum one or two full-page ads or inserts a week," Steffens said.

Wal-Mart said it would look first at whether the new local ads increased sales and traffic at 218 stores in those newspapers' territories. "If there is a significant return, we would consider incorporating the local papers into our overall ad strategy," Wal-Mart spokeswoman Mona Williams said.

Williams said Wal-Mart had traditionally not advertised locally because it had strong customer traffic anyway. Its practice of "every day low prices" also means it does not need to advertise sales and individual items like many other retailers do.

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