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http://adage.com/article?article_id=111477
Wal-Mart Partners With National Gay and Lesbian Group Also Hires Gay-Marketing Shop as Retailer Works to Alter Image
By Mya Frazier
COLUMBUS, Ohio (AdAge.com) — In an unprecedented push, Wal-Mart
Stores has hired a gay-marketing shop, joined the National Gay &
Lesbian Chamber of Commerce and begun discussions with activist
groups about extending domestic-partnership benefits to its employees.
The initiative comes as Wal-Mart aims to broaden its appeal and woo
both upscale and urban markets, but this is not the first time Wal-
Mart has attempted to appease critics in the gay and lesbian community.
‘Very pragmatic’
“Wal-Mart is going about this in a very pragmatic way,” said Justin
Nelson, president of the National Gay & Lesbian Chamber of Commerce,
an independent organization with 24,000 members. “They have been
viewed with some degree of skepticism by the lesbian, gay, bisexual
and transgendered community, and it’s important for them in terms of
gaining market share to change that.”
A Wal-Mart spokeswoman declined to comment on the trio of moves and
would only confirm the company’s partnership with the NGLCC.
The initiative comes as Wal-Mart aims to broaden its appeal and woo
both upscale and urban markets, but this is not the first time Wal-
Mart has attempted to appease critics in the gay and lesbian
community. In 2003 — after years of lobbying by activist groups –
Wal-Mart extended its workplace nondiscrimination policy to include
sexual orientation.
Firm typically a consultant
Despite an ongoing review for its $578 million ad account, Wal-Mart
hired Witeck-Combs Communications, a marketing shop known for its
work targeting the gay and lesbian consumer market, according to Bob
Witeck, president of the Washington-based firm. Wal-Mart would not
confirm the assignment and Mr. Witeck declined to comment on the
“nature of the relationship,” but added: “We work in more of a
consulting role with most of our clients.”
Founded in 1993, the eight-person agency’s client list boasts
automotive brands Volvo, Land Rover, and Jaguar, in addition to
American Airlines, Citigroup and at least a dozen nonprofits, such as
the American Association of People with Disabilities.
Witeck-Combs, a member of the NGLCC, is also a participant in the
organization’s supplier-diversity initiative, or SDI, a certification
program launched this year and modeled after minority- and women-
supplier development programs. Corporate participants already include
IBM, American Airlines, Motorola and American Express.
Conference sponsor
As part of the Wal-Mart Stores partnership with the NGLCC, Dee
Breazeale, VP-divisional merchandising, Sam’s Club Jewelry, has
joined the organization’s Corporate Advisory Council and Wal-Mart
will sponsor two of the organization’s annual conferences.
Mr. Nelson said Wal-Mart approached the organization four months ago,
expressing interest in the supplier-diversity initiative. “The
expectation is that Wal-Mart will encourage their core suppliers –
the P&G’s, the Johnson & Johnson’s and the Gillette’s — to also
diversify their revenue streams to include LGTB businesses,” Mr.
Nelson said.
He said the retailer is “working right now on providing domestic-
partnership benefits” and that Wal-Mart may soon join the 261 members
of the Fortune 500 that offer the benefits.
Strongest signal yet
The steps being taken by Wal-Mart are the strongest signal yet that
the company may be taking a permanent stand on the side of gay
rights, despite the inevitable lambasting from right-wing
conservative groups, such as the Family Research Council and the
American Family Association, said Nu Wexler of Wal-Mart Watch, the
Washington-based coalition backed by the Sierra Club and the Service
Employees.
“This partnership shows Wal-Mart is changing,” Mr. Wexler said. “It’s
worth noting they declined to publicize this partnership and left it
up to the chamber. Wal-Mart is very eager to publicize partnerships.
It’s possible they fear a backlash from their conservative consumer
base.”