Residents in Northwest Arkansas and the Fort Smith area will soon have a new place to shop for winter coats and apparel when a Burlington Coat Factory opens this fall and spring 2016, respectively, in the two areas.

The new 60,000 square-foot store in the Pleasant Grove center in Rogers, which will add between 50 and 100 new jobs to the local retail sector, is under construction as part of a 38-acre development on South Pleasant Crossing Boulevard, west of Ashley Furniture.

The two stores are the anchors of the center which will feature 290,000 square feet when completed, said Matt Sitton of The Sitton Group. Sitton is a relatively new private developer after a 10-year career with Wal-Mart in the area of new store development, primarily in the Northeast U.S. The Sitton Group opened in 2012, he said.

Two restaurants, Taco Bueno and Backyard Burgers, are part of the Rogers development but have purchased their properties, Sitton said. A Whataburger under construction north of Backyard Burgers is separate from the Burlington complex, he added.

Sitton also is working with “about a half dozen” other retailers to negotiate contracts for the remaining space in the center, including a “junior anchor” for 20,000 to 30,000 square feet. He declined to identify any of the potential lessees except to say the junior anchor would be a nationally known retailer. The smaller stores will be between 4,000 to 10,000 square feet, he said. 

Phase I represents a $20 million construction project. C.R. Crawford is the contractor. The first phase is expected to be completed in the next 12 to 18 months and the second phase could be finished in another 18 months after it begins, probably later this year, Sitton said.

The Rogers store would be the third store in Arkansas. Other stores are in Little Rock and North Little Rock. A fourth store is also planned at the Azalea Square Shopping Center in Fort Smith. That store is scheduled to open next spring in 2016. 

The two stores are part of 17 new stores announced since January by the Burlington Company. The new stores are scattered across the country, according to the company website.

Rogers Mayor Greg Hines said Burlington Coat Factory is a retailer folks who’ve relocated to Rogers in recent years from around the country often ask him about. Hines said the time is ripe for development in southwestern Rogers, which was one of the areas where infrastructure has been in place for more than a decade but has lagged other retail centers like Pinnacle Hills and Scottsdale Center. 

“Hanks Furniture made the commitment to this area when the market was not very good. Since then, development had trickled in, but that has changed. In recent months Gusanos took over the Mad Pizza space, Cavender’s opened its new store and the Whisenvest development is nearly fully leased,” Hines said.

Steve Cox, director of economic development for the Rogers-Lowell Chamber of Commerce, said the longtime commercial development plan for this area is finally coming to fruition long after residential housing subdivisions were completed. 

It’s normal for retail to follow rooftops but in southwest Rogers it’s been a decade in the making. Hines said after the recession hit the building in this area just stopped, so it’s great to see the dirt turning again and steel going up. 

Cox and Hines said the region’s growing population is one of the factors that keep national retailers interested. They said the growth rate is sustainable as sales taxes, building permits and job growth are all within a few percentage points of one other. 

“Going over the 500,000 population mark also helped to open up the region to more retailers. Rogers benefits from that because it has become a large retail center for Northwest Arkansas. I remember when I was a kid we had to go to Fayetteville to buy a pair of jeans,” Hines said.

The Wal-Mart shareholders meeting set for Friday (June 5) will find a high-profile gaggle of celebrities more than 14,000 people packed into Bud Walton Arena on the University of Arkansas campus. Walter Loeb remembers when the meeting was a short affair held in the dining hall of the corporate offices. The next day they might have a picnic at the home of Helen and Sam Walton.

From simple traditions to star-studded spectacles, Loeb, 90, remembers the four decades he’s followed retail giant Wal-Mart Stores. Loeb was a Wall Street analyst at Morgan Stanley when Wal-Mart shares first went public in 1970. Today, the New Yorker is a contributor to Forbes and founder of Loeb & Associates, a retail consulting firm in Manhattan.

“I am very fond of Wal-Mart and all of its history. I met Sam Walton when I was covering retail at Morgan Stanley. I admired his attention to detail and the fact that people meant so much to him,” Loeb said in a phone interview with The City Wire.

Loeb said wherever he saw Sam, the retail magnet was usually more concerned with getting to know the people he met and their personal stories that he was about sharing his own successes.

“This was a man who worked every single day, studying all that he could from his competitors and other experts and then adapting those best ideas for his own stores,” Loeb said.

SAM THE SHOWMAN
His first recollection of the shareholder meeting was a simple event held in the dining hall of the corporate offices. He said there was always some fun festivities planned for the following day and usually a picnic at the family home.

“Sam was very aware of Wall Street and he worked quite hard to get analysts down to Arkansas in the first few years after the company went public. Some of the memorable events included overnight float trips or fishing trips to Bull Shoals,” Loeb recalled.

He said to take a group of New Yorkers who had never been on a float in their lives was a gutsy move. But he remembers that there were plenty of experts on hand for the New York novices. Loeb remember those early years as “family affairs” with lots camaraderie.

“His wife Helen and their daughter Alice usually took part in the festivities that lasted a couple of days,” he added.

He remembers Walton as a “showman” but said underneath there was skilled merchant who understood the need for a fast distribution system and, more importantly, a man who understood people, especially his customers and his employees.

“Everyone remembers the time Sam Walton danced the hula on Wall Street in a grass skirt when the company’s sales growth surpassed 8%. In doing that, he endeared  himself to analysts. He was a lot of fun and made a big impression on us back then,” Loeb shared. (See that video at the end of this story.)

PROUD OF GROWTH
Since Walton’s death in April 1992, the company has grown exponentially. The sales reported in the 1993 Annual Report were $55 billion growing from $43.8 million in 1992. The company’s international segment consisted of one joint venture partnership in Mexico with four stores and three clubs.

Last year Wal-Mart Stores reported total sales revenue of $482.2 billion, the international segment contributed $136.16 billion which was derived from 28 countries around the globe.

“I don’t think Sam Walton would recognize Wal-Mart today. But I do think he would be proud of the growth and achievement of strength Wal-Mart has reached in the retail industry. It’s kind of ironic that the retail federation shunned him years ago. They saw him as an outsider and did not extend membership to him, instead favoring some of his competitors. It’s a shame because his leadership would have been good for everyone in the industry, including his competitors,” Loeb said.

RETRACING ROOTS
Loeb said he won’t be making the trip to Bentonville for this year’s shareholder meeting.

“It’s more show than business today. I will be watching online,” he said. “But when the executives meet in New York with analysts this fall I plan to be there. Today everything runs on a strict schedule, it’s a bureaucracy at work, very different from the personal touches that Sam Walton mastered.”

Loeb said he’s impressed with Wal-Mart Stores CEO Doug McMillon, who he says is like Sam – a merchant at heart with a charismatic demeanor and strong leadership skills.

“McMillon and his team are out and about in the stores, working to simplify the bureaucratic lines in the chain of divisional commands which is a good thing,” he said. 

Loeb said the company’s recent efforts to improve customer service and employee relations would likely get a nod of approval by Sam Walton if he could see it.

A new Arvest survey indicates Arkansans are growing more confident about the financial situation, and a closely watched Creighton report suggests that economic growth in and around Arkansas is slowing.

Many Arkansans are looking forward to purchasing a “big ticket” household item during the second half of 2015 as many have seen their personal financial situation improve this year, according to the spring edition of the 2015 Arvest Consumer Sentiment Survey released Tuesday (June 2).

“More Arkansas consumers are expecting to maintain or improve their personal financial situations within the year,” said Kathy Deck, Director of the Center for Business and Economic Research in the Sam M. Walton College of Business at the University of Arkansas. “This uptick in outlook is consistent with growth in the labor force and declines in unemployment throughout the state. Arkansans are a bit more cautious about making optimistic predictions for the overall economy, but are still more positive than in previous surveys.”

This is the second phase of Arvest’s series of consumer sentiment surveys that offer a reading of how Arkansans and consumers in neighboring states are feeling about their current financial situation. Earlier this month, the first phase of the Arvest survey showed that consumer confidence in Arkansas had jumped more than ten points since October, mainly because of the state’s improving employment and income situation, and lower gas prices.

In the most recent survey conducted in March, 30% of Arkansas consumers expect their personal financial situation to improve over the next 12 months, up 4% from the previous survey in October. Fifty-five percent, meanwhile, expect it to remain the same over the next 12 months. That’s up from 54% in October.

REGIONAL COMPARISON
The other states surveyed were Oklahoma and Missouri, along with the Kansas City metropolitan area. Across the region, 53% expect their personal financial situation to stay the same, while 33% expect it to improve.

When it came to determining buying conditions, 56% of Arkansans believe the next six months will be a good time to buy items like furniture, televisions and refrigerators. That’s eight points better than 48% who were looking to make a major household buying decision in October.

By comparison, 59% of the entire region believes the next six months will be a good time to buy, up 18% since the last survey in the fall.

On the overall economy, Arkansans felt slightly better in March than they did in October about current business conditions. While 29% expected good times for businesses over the next year, 39% expected the same over the next five years. That compares to 23% and 32%, respectively, in October.

Expectations for the region as a whole were also much higher. Thirty-four percent of consumers across the region expect good times for businesses over the next year, while 42% expect robust economic growth over the next five years. Those percentages are up a whopping 36% and 16.7%, respectively, compared to October.

The Arvest Consumer Sentiment Survey, modeled after the national consumer sentiment survey released monthly by Thomson Reuters and the University of Michigan, is conducted by the Center for Business and Economic Research (CBER) in the Sam M. Walton College of Business at the University of Arkansas. The University of Oklahoma’s Public Opinion Learning Laboratory conducted the 1,200 random phone surveys.

CREIGHTON REPORT
The Creighton University Mid-America Business Conditions Index for May shows that the regional economy that includes Arkansas is pointing to positive but slow economic growth over the next three to six months.

Ernie Goss, director of Creighton University’s Economic Forecasting Group, warned that the region’s job market could experience difficult conditions in the third quarter.

“Firms linked to energy and agriculture are experiencing pullbacks in economic activity. Job growth in Oklahoma and North Dakota, two energy-producing states, have moved into negative territory,” Goss said. “Other states dependent on agriculture are also experiencing slower economic growth. That growth is likely to move even lower in the months ahead as the strong U.S. dollar slows economic activity even more.”

The monthly index developed by Creighton University is a leading economic indicator for a nine-state region stretching from North Dakota to Arkansas. In April, the index slumped to 50.4 from April’s tepid 52.7 on a scale of zero to 100.

Overall, the leading economic indicator for Arkansas in May slipped to 49.8 from 53.6 in April. Components of the index from the monthly survey of supply managers were new orders at 50.3, production or sales at 52.1, delivery lead time at 51.1, inventories at 47.6, and employment at 47.6.

“Business activity slowed for both durable and nondurable goods manufacturers in the state,” Goss said.

The Creighton University index is a mathematical average of indices for new orders, production or sales, employment, inventories and delivery lead time. This is the same methodology used by the National Institute for Supply Management, formerly the Purchasing Management Association, since 1931.

Unlike Arvest’s consumer-focused survey, the Creighton University poll quizzes supply managers in Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota to get their reading on business conditions.

One of the more surprising notes from the Creighton University survey was that employment remained in a range indicating slightly negative to stagnant job growth for manufacturing and value-added services firms in the region.

“These negative job numbers will spill over into the broader job market in the months ahead,” Goss said of the job gauge that fell to 48.3 from 49.2 in April.

This month, Goss said, supply managers were asked about the hiring situation at their firms.

“Ten percent of supply managers reported an upturn in the number of applicants for each available job. On the other hand, approximately 9% of supply managers indicated the shortage of qualified workers increased from last month. The remaining 81% indicated no change in the number of applicants to open positions,” Goss said.

Arkansas’ May tax revenue report is the second consecutive months of more than 4% gains in sales and use tax collections, which is an indication of improving consumer confidence. Overall, tax revenue for the state’s first 11 months of the fiscal year is up 3.1%.

Gross revenue between July 2014 and May was $5.8 billion, up 3.1% compared to the same period in the previous fiscal year, and up 0.3% above the budget forecast, according to the report issued Monday (June 2) by the Arkansas Department of Finance and Administration.

Individual income tax collections for the first 11 months of the fiscal year totaled $2.909 billion, up 3% from last year and 0.9% above the budget forecast. Year-to-date sales and use tax collections were $2.038 billion, up 2.3% compared to last year and 0.3% above the budget forecast. Income taxes and the sales and use tax collections are the two primary sources of state revenue.

Corporate income tax revenue for the first 11 months is $412.8 million, up 10.3% compared to the same period in the previous fiscal year, and up 0.5% over the budget forecast.

Total collections in the May report was $427.5 million, up just 0.5% compared compared to May 2014, and up 3.6% above the forecast.

“Results in May were above forecast in all major categories of gross collections. In addition, refunds in both Individual and Corporate Income tax were less than expected,” according to John Shelnutt, head of the Department of Finance and Administration’s Economic (DFA) Analysis & Tax Research division. “Sales and Use tax revenue rose 4.4 percent compared to year ago and 3.8 percent above forecast, marking the second consecutive monthly gain of 4.0 percent or better growth.”

Sales and use tax revenue during the month was $188.6 million, up 4.4% and up 3.8% over the budget forecast. In the April report, Shelnutt said the sales and use tax gain was “part of a rebound effect from weather-related declines in the prior month.”

Consumer spending could remain active through the remainder of 2015, according to a consumer sentiment survey released Tuesday by Arvest. Results from the survey indicated that many Arkansans look forward to purchasing a “big ticket” household item during the second half of 2015 as many have seen their personal financial situation improve this year.

Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas, told The City Wire that unemployment numbers are promising, low interest rates should stay in place for the short term and Arkansans are, generally, responding well to an improving economy.

Individual income tax revenue in May was $198.9 million, down 2.3% compared to May 2014 and up 14.5% over the budget forecast.

OTHER TAX COLLECTIONS
Alcoholic beverage
July 2014 - May 2015: $47.9 million
July 2013 - May 2014: $47.1 million

Games of skill
July 2014 - May 2015: $42.6 million
July 2013 - May 2014: $35.9 million

Tobacco
July 2014 - May 2015: $199.6 million
July 2013 - May 2014: $201.2 million

Insurance
July 2014 - May 2015: $69 million
July 2013 - May 2014: $68.6 million

COLLECTIONS HISTORY

Tax collections during fiscal year 2014 (July 2013-June 2014) totaled $6.242 billion, up 0.5% above the previous fiscal year and up just 0.2% compared to budget estimates. The year marked the fourth consecutive year of revenue increases. The fiscal year ended with a budget surplus of $78.7 million.

Tax collections during fiscal year 2013 (January 2012-January 2013) totaled $6.214 billion, up 4.9% above the previous fiscal year and up 2.5% compared to budget estimates. One result of the gains was a budget surplus of $299.5 million.

Arkansas tax collections reversed a negative two-year slide in the 2011 fiscal year, with collections up 4.5% in the January 2010-January 2011 period. State tax collections for fiscal year 2011 totaled $5.673 billion, up 4.5% above the $5.43 billion in the 2010 period.

The biggest declines in the 2009 and 2010 fiscal years were with individual income tax collections and sales and use tax collections.

Common Core State Standards is a term that elicits strong support or strong opposition among Arkansans without discernible middle ground in the discussion.

The standards were adopted in Arkansas in 2010 by the Arkansas State Board of Education. Four years after implementation, concerns linger that the standards were adopted without input from parents or the Legislature, invade privacy of students and families and insert federal intervention in the lives of everyday Arkansans.

In the simplest form, the standards represent proficiencies — skills and knowledge — a student should master at each grade level. How a student reaches the masteries of a grade level is up to the student’s teacher and the district, said Megan Witonski, assistant superintendent for instruction in the Springdale School District.

In Grade 3 math, for example, instruction should focus on four areas: developing an understanding of multiplication and division and strategies for multiplication and division within 100; developing an understanding of fractions, especially unit fractions with numerator; developing an understanding of the structure of rectangular arrays and of area; and describing and analyzing two-dimensional shapes.

The complete set of standards in English-language arts and math for grades kindergarten through 12 can be found at this link. Also, the Arkansas Department of Education has a “frequently asked questions” page on common core at this link.

OPPOSITION, PARCC TEST ISSUE
Still, concerns remain among some Arkansans about common core. Arkansans Against Common Core has been the most vocal opponent of the new system. Group leaders say it limits local control of schools and is an unnecessary expense.

“A majority oppose it because it stifles curriculum development and teacher/school autonomy in choosing what is best for their students. Still other fiscally concerned citizens reject it for its massive spending requirements. Ending common core and the related tests are our goal. We seek this goal to retain local control and oppose a top-down centralization of education,” the group notes on its website.

The biggest complaint has centered on the development and use of a new assessment aligned to the new standards, called the Partnership for Assessment of Readiness for College and Career or PARCC. Arkansas is a member of the PARCC consortium. Other states joined a second assessment consortium called Smarter Balance. Some of the opposition seems to intertwine Common Core with PARCC.

“Don’t confuse Common Core with PARCC,” said Barry Owen, assistant superintendent for instruction in the Fort Smith School District. “Common Core is like a Cadillac being driven down a dirt road, called PARCC, which is now being paved.”

The concerns in Arkansas reached the desk of Gov. Asa Hutchinson shortly after his inauguration when he appointed a 17-member task force, chaired by Lt. Gov. Tim Griffin, to review Common Core and the PARCC assessment. The PARCC assessment was administered for the first time statewide this past spring. It replaces the Benchmarks exams which have been around for two decades or longer.

The task force is holding public hearings in Little Rock and at nine locations around the state to gather public input on Common Core and make recommendations to the governor about the ongoing use of the standards and assessment. Three public hearings remain: June 9 in Batesville; June 16 in Pine Bluff; and June 18 in Fort Smith.

‘GREATER FREEDOM TO EXPLORE’
While all of education’s eyes are focused on that task force, schools continue to develop the Common Core standards as the best way to prepare students for the future, including jobs that may not exist today.

“It’s hard and rigorous,” Owen said of the Common Core standards. “It’s critical. We’re changing because we have to. Business and the world demand it. We have to have students do what the world expects.”

In Fort Smith classrooms, as well as classrooms across the state, students are adapting to the changes in standards by asking more questions and learning to think creatively and work collaboratively, Owen said.

“The sky is the limit on how kids can think creatively, reaching new heights. There is greater freedom to explore,” he added. “Teachers are becoming facilitative, encouraging students to think, to discover, to question.”

Owen said Fort Smith schools started early in the implementation process reaching out to stakeholders — parents, patrons, civic clubs, for example — to talk about Common Core, its relevance, importance and why the change was needed.

“From an international standpoint, we were losing our foothold, we were no longer competing,” Owen said. “Instead of competition nationally, we now compete with Beijing and New Delhi.”

Springdale’s Witonski said the controversy stems from misunderstanding and misinformation.

“Our goal has been to build a pathway to college and career for all students,” Witonski said of the goal of Common Core in Springdale, the second largest school district in the state. “Teachers have invested time and effort and continue to implement the standards. It takes several years to know the success.”

MEASURING THE PROGRAM
That success can be measured by an increased high school graduation rate and a decrease in the remediation rate for students entering college. The first data from the administration of the PARCC assessment in Springdale will come in November. Springdale also uses the Measures of Academic Progress or MAP testing at several intervals in the school year to measure individual student progress. MAP is one of several progress assessments all school districts use.

“This creates a personal assessment of learning level progress as charted over time,” Witonski said. Springdale implemented MAP testing four years ago. “We don’t want to send students with deficiencies to the next grade level.”

Witonski said rather than losing control, districts gain control with the Common Core standards.

“Each school district is independent. How the teacher reaches the goal is up to the district and the teacher,” she added.

The importance lies in getting a student to the proficiency level for the grade, although there may be 50 or more ways to get there, she said.

“The learning process is like a fingerprint, no two students learn alike.”

Standards are not new in Arkansas, Witonski said. Standards have been part of the education landscape. Standards have been around for at least two decades first brought forth by former Gov. Bill Clinton. Over the years, standards have been revised or updated.

“That is nothing new,” Witonski said. “This is not the first time for standards in Arkansas. These won’t be forever.”

PUSH TO KEEP COMMON CORE
Recommendations to the governor haven’t been formulated but Springdale, for one, wants the opportunity to invest time and effort to continue the implementation until success can be determined. The same is true in Bentonville.

“This isn’t something that just happened. It’s been four-year implementation process.” Bentonville has created parent understanding and buy-in during that time through collaboration,” said Bentonville Superintendent Mike Poore.

Bentonville is participating in the discussion by sending representatives to Little Rock and hearing sites around the state to make sure task force members understand Common Core and what it means to Bentonville students. 

“There is value in keeping the standards at the national level. The standards are moving education in the right direction,” Poore said. “We want to produce a graduate who is better prepared for postsecondary college or career. We don’t want the student to feel he wasted four years of effort.”

The Common Core standards were originally adopted by 46 states as well as the District of Columbia. Texas, Nebraska and Minnesota were among the states that didn’t adopt the standards. Since 2010 when Arkansas adopted the standards, several states, including Oklahoma, Indiana, Tennessee and Kentucky have repealed the standards or the use of the accompanying assessment, PARCC or Smarter Balance.

Home sales in Arkansas’ four large markets are up almost 7% through April, even with a decline in homes sold in two of Arkansas’ four large metro markets during April. Also impressive is that the average sales price in the four markets is up more than 7% and the value of sales is up almost 15% year-to-date.

The City Wire’s Arkansas Home Sales Report captures home sales data in the state’s 14 most populated counties within its four largest metro areas — Central Arkansas, the Fort Smith area, Jonesboro/Northeast Arkansas and Northwest Arkansas. The report, which records closed sales, accounts for between 70% and 75% of total Arkansas home sales.

The number of homes sold in the four markets in the January-April period totaled 6,604, up 6.9% from 6,177 in the same period of 2014, and up 11.37% compared to the same period in 2013. In the January-April period, home sales were up 3.56% in central Arkansas, up 7.37% in the Fort Smith metro, up 5.12% in the Jonesboro metro and up 12.23% in Northwest Arkansas.

The total value of January-April home sales in the four markets was $1.102 billion, up 14.83% compared to the same period in 2014 and up 14.55% compared to the 2013 period.

Average sales prices are also on the rise. The average price for homes in the four markets was $166,898 in the January-April period, up 7.41% compared to the same period in 2014, and up 2.86% compared to the same period in 2013. For the year-to-date period, the average sales price in the four large markets ranged from a high of $196,861 in Benton County to a low of $87,954 in Jefferson County.

As it has been for most of the year, the only negative in the Arkansas Home Sales Report is the days-on-market number. The average days on market during the January-April period was 104.36, up from the 102.57 in the same period of 2014, and up from 103.49 in the same period of 2013.

POSITIVE OUTLOOK FOR HOME SALES
Kathy Deck, director of the Center for Business and Economic Research at the University of Arkansas, said April was a strong month for the housing market even when compared to a “monster” March. In March, sales were up 15.33% in the four areas of the state covered in The Arkansas Home Sales Report when compared to the same month a year ago. In April, sales were up 2.88% compared to the same month last year.

Deck said the remainder of 2015 will be good for more home sales growth. She said the summer months are traditionally the strongest ones for home sales and there is every indication sales will continue to expand this year.

She said unemployment numbers are promising, low interest rates should stay in place for the short term and Arkansans are, generally, responding well to an improving economy. Part of that response, she said, is taking on the commitment of financing homes – a major decision people generally don't take when they are out of work or worried about keeping their jobs.

MODEST GROWTH IN APRIL
April home sales in the four markets totaled 1,930, up 2.88% compared to April 2014, and up 8.86% compared to April 2013. The average price per home in the four markets during April was $172,520, up 8.14% compared to April 2014, and up 1.7% compared to April 2013. The total value of sales in the four markets during April was $332.964 million, up 11.26% compared to April 2014 and up 10.71% compared to April 2013.

Home sales during April were up in Northwest Arkansas and the Fort Smith metro, but down in central Arkansas and the Jonesboro market.

There were 894 homes sold in central Arkansas, down 2.93% compared to April 2014, and up 6.05% compared to April 2013.

April home sales totaled 677 in Northwest Arkansas, up 14.36% compared to April 2014, and up 10.26% compared to April 2013.

Jonesboro area home sales totaled 192, down 3.52% compared to April 2014 and up 12.94% compared to April 2013.

In the Fort Smith area, home sales totaled 167, up 1.83% compared to April 2014, and up 14.38% compared to April 2013.

Thanks to higher average home prices, the sales value was up in all four markets. The total value of the sales during April were up 3.02% in central Arkansas, up 22.73% in Northwest Arkansas, up 10.55% in the Jonesboro area, and up 33.74% in the Fort Smith region.

THE REGIONAL PICTURE: January-April 2015
Central Arkansas — Home sales
Jan.-April 2015: 3,054
Jan.-April 2014: 2,949
Jan.-April 2013: 2,820

Fort Smith area — Home sales
Jan.-April 2015: 597
Jan.-April 2014: 556
Jan.-April 2013: 479

Jonesboro area — Home sales
Jan.-April 2015: 678
Jan.-April 2014: 645
Jan.-April 2013: 557

Northwest Arkansas — Home sales
Jan.-April 2015: 2,275
Jan.-April 2014: 2,027
Jan.-April 2013: 2,074

The top five counties in terms of January-April 2015 home sales:
Benton — 1,424, up compared to 1,294 in January-April 2014
Pulaski — 1,371, up compared to 1,352 in January-April 2014 
Washington — 851, up compared to 733 in January-April 2014
Craighead — 553, up compared to 510 in January-April 2014
Saline — 523, up compared to 508 in January-April 2014

Link here for a PDF document of the April 2015 data.

THE 2014 PICTURE
There were 21,447 homes sold in Arkansas’ four largest markets in 2014, up 3.8% over 2013 and up 17.33% over 2012. The total value of home sold in the four markets during 2014 was $3.554 billion, up 3.24% over 2013 and up 18.97% compared to 2012. Gains in the number of homes sold in 2014 certainly varied by market.

Sales totaled 9,904 in central Arkansas, up 2.32%. In the Fort Smith region, which has an economy not yet on stable footing, home sales were up a surprising 14.33% for the year.

Much like an iceberg, the part of Wal-Mart visible to most is a small part of what makes up the global retailer based in the small Arkansas town of Bentonville.

During this week of events related to Friday’s (June 5) Wal-Mart shareholders meeting in Fayetteville, the Northwest Arkansas population will receive a brief influx of more than 5,000 visitors. But the annual gathering again reminds us that culture concerns, carbon footprints and corruption costs are just many of the angles to the business gamble made decades ago by Helen and Sam Walton.

CULTURE CLUB
The closed-type culture embodied by Wal-Mart Stores and its founding family is most likely tied to the co-founder and matriarch Helen Walton. A woman of means herself and a banker’s daughter, Helen Walton never wanted Sam to take the company public.

“I realized before we went public that I didn’t want it to happen. I guess if I were going to be mad at Sam about anything it would be over the fact that I always felt we could have gotten by without going public. Nothing about the company ever affected me as deeply and it was at that point I decided to pursue my other interests out the company. I just hated the idea that we were going to put all our financial interests out there for everybody to see. When you go public, they can ask you all kinds of questions, and the family gets involved. We just became an open book and I hated it,” Helen Walton noted in her husband’s biography, “Sam Walton: Made in America.”

BANKING TIES
Sam Walton said in his biography that he purchased the Bank of Bentonville in the late 1960s for a mere $300,000. The bank had $3.5 million in deposits at the time. He said purchasing the bank helped to give him a better understanding of how to finance debt and it introduced him to big city bankers who could better finance the company’s growth prior to going public.

The banking interest acquired by Walton has morphed into Arvest Bank, the largest in the state today in terms of deposit marketshare. Arvest also has branches in Oklahoma, Missouri and Kansas with combined assets in excess of $15.33 billion, according to the March 31, filings with the Federal Deposit Insurance Corp.

Walton’s youngest son Jim, is the chairman and CEO of Arvest Bank Group, a position he has held since 1990.

CORRUPTION COSTS
Alleged violations of the Foreign Corruption Practices Act by Wal-Mart has cost the retailer more than $612 million in legal fees and compliance restructuring costs over the past three years. 

In fiscal 2015 which ended Jan. 31, Wal-Mart said it spent $173 million on FCPA compliance-related costs. The majority of that — $121 million — was spent on legal costs associated with the investigation and additional inquiries. The remaining $52 million was spent on Wal-Mart’s internal compliance overhaul. In the prior two years, FCPA costs total $439 million for Wal-Mart, with $282 million in 2014 and $157 million in 2013.

At $173 million in fiscal 2015, the FCPA expenses equate to roughly the loss of a nickel per share in earnings last year. In the three years since Wal-Mart begin disclosing its FCPA-related expenses the impact to earnings is nearly 19 cents a share.

When the case is finally resolved, analysts expect the fines and total costs could reach up to 9% of the company’s total gross earnings or approximately $7 billion.

LAW OF BIG NUMBERS
Wal-Mart faces an uphill challenge in the foreseeable future to overcome the law of big numbers hurdle that has stifled sales growth at 2% annually, according to several Wall Street analysts who watch the company.

In the past two years Walmart U.S. has grown its store count to 4,516 by the end of fiscal 2015 (Jan. 31). That included 316 new stores in fiscal 2015 and 198 in 2014. Sales revenue rose to $288 billion in fiscal 2015, up 3.08% 

But consolidated net sales including Sam’s Club and International rose just 1.9% to $482.229 billion. While some international markets are performing well, the high dollar value relative to other global currencies continues to cost the retailer. The company took a $5.3 billion hit to fiscal 2015 sales revenue because of negative currency exchange rates.

CARBON FOOTPRINT
Wal-Mart executives say they are committed to sustainable practices that reduce the retailer’s energy consumption and becoming 100% powered by renewable energy. But no deadline has been given on such goals. To date Wal-Mart reports 26% of its electricity used is generated from renewable sources.

Critics say Wal-Mart’s sustainability efforts have been more rhetoric than substance. The Institute for Local Self Reliance said Wal-Mart is one of the nation’s largest users of coal-fired electricity, and that its heavy reliance on coal pumps nearly 8 million metric tons of carbon pollution into the air each year.

According to an ILSR 2014 report, Walmart’s U.S. operations use nearly six times the amount of electricity as the entire U.S. auto industry. The operations use more than 4.2 million tons of coal each year, accounting for nearly 75% of the company’s total emissions from U.S. electricity use.

Other retailers, including Kohl’s and Ikea, are outpacing Wal-Mart in the shift to renewable energy. Ikea has installed rooftop solar panels on 90% of its U.S. stores, including in many heavy coal-using states where Wal-Mart has no renewable energy projects, according to Stacey Mitchell, a senior researcher at ISLR.

“If you dumped coal on a football field, you’d have to pile it 35 feet high, from end-zone to end-zone just to power Wal-Mart’s U.S. stores for one week,” Mitchell noted.

But progress is being made. Wal-Mart is much closer to its goal of achieving 0% waste. Walmart U.S. operations waste diversion improved to 82.4% in 2014. Walmart International achieved an estimated 68% diversion across stores, clubs, distribution centers and other facilities. 

VOLUNTEERING PAYS
Wal-Mart encourages its employees to give of their time and talents in their local communities around the world. In 2014, Wal-Mart workers volunteered more than 1.5 million hours toward causes they care about in their local communities.

For each hour volunteered, Wal-Mart will donate the worker’s hourly pay rate to the charity in cash funds. Last year Wal-Mart contributed $14 million to the causes supported through its Volunteerism Always Pays (VAP) program.

SLAVE TO THE DIVIDEND
One constant at Wal-Mart Stores is a consistent quarterly dividend paid to shareholders that has increased threefold over the past decade. The biggest benefactors of the rising dividend are the Walton family heirs who together own 51% of the outstanding shares.

The cash dividend projected for this year is $1.96 per share, an increase from $1.92 last year. For the Walton family heirs the dividend payments totaled about $3.176 billion last year. This year at the higher rate the cash dividend payout to the family is expected to total $3.242 billion.

Even amid challenging sales growth, increased foreign exchange costs and compressed margins, Wal-Mart continues to raise its cash dividend year-over-year which helps support demand for the stock and adds to the Walton Family wealth.

STOCK PERFORMANCE
Wall Street continues to be cautious with respect to Wal-Mart shares despite approving of the management changes and dramatic overhaul the retailer is making with regards to its U.S. division. Wal-Mart shares have felt the tension thus far in 2015.

Wal-Mart shares trading Tuesday (June 2) at $74.47 have tumbled more than 13% in value since January. In the two years since CEO Doug McMillon has been in charge the stock price is down 1.8%. 

This comes on the heels of solid price growth between 2009 and mid 2012, when the share price began to flatten out in the mid-$70 range. Former CEO Mike Duke presided over the company at a time (2009 to 2013) when share price rose from $50 to more than $77 — a gain of 54% over the five-year period.

POLITICAL GIVINGS
As a Fortune 100 company that does business around the world, Wal-Mart Stores has ample reasons to lobby for and against laws that impacts the business. The company’s lobby funding peaked in 2011 with annual contributions totaling $7.84 million. 

Since that time political contributions have ranged between $6.13 million in 2013 and $7 million in 2014. Prior to 2008, the company’s annual political contributions toward lobbying efforts topped out at $3.2 million.

The issues most often funded by Wal-Mart Stores in recent years include: taxes, trade, labor & workplace, health and consumer public safety, according to OpenSecrets.org.

A lengthy and at times tense Fort Smith Board of Directors meeting Tuesday night (June 2) was the result of an attempt to override a mayoral veto, and a vote on reducing benefits for a Fort Smith Police and Fire Department pension plan.

The Board on May 19 voted 4-2 to change the city’s budgeting system from a cyclical to a structural method. A majority of the seven-member Board preferred a “structural” method they say presents a real world financial picture. The city now uses a “cyclical” method that factors in fund balances from previous years.

City Finance Director Kara Bushkuhl has noted in a memo to the Board that advantages of a cyclical budget include familiarity, conservative revenue estimates, a multi-year perspective that provides better future financial planning, spending for actual needs, and the avoidance of negative changes in service levels because of changes in available funding. Her note did say a disadvantage of this budgeting is the possibility of “spending above current year revenues.”

Mayor Sandy Sanders vetoed the ordinance on May 30, saying in part that the “current process provides the flexibility to reduce spending if income levels fall short of projections, especially during economic downturns, while still providing essential services.” The Board needed five votes Tuesday night to overturn the veto.

On Tuesday Directors Keith Lau, Mike Lorenz, Tracy Pennartz and Kevin Settle continued to push their argument that a budget change gives them more accurate information on which to make timelier decisions. Lorenz said the city has operated a budget deficit in seven of the previous 10 years. He alleged that the cyclical method “makes that easier” because city staff is able to use savings from previous years to cover budget deficits. He argued that using a cyclical method is “an easy way to end up with a balanced budget that may not be balanced.”

City Administrator Ray Gosack said some of the budgeting ideas proposed by the Directors seeking a budget change could be adopted in several months during the upcoming budgeting process. Director Pennartz interrupted Gosack to say she was not willing to wait months to adopt “sound financial policies … especially after we have spent hours reviewing these policies.”

However, the arguments were not enough. Directors George Catsavis, André Good and Don Hutchings voted to uphold the veto, which prevented a five-vote margin to override the veto.

PENSION SHORTFALL
The other sensitive issue was in addressing a looming shortfall in the city’s pension for fire and police retirees that could go broke by 2019.

Fort Smith in 2004 implemented a higher 3.28 multiplier for the pension plan, up from the base multiplier of 2.94. When the base multiplier was adopted, the city had an $11.863 million balance in its pension contribution fund and was adding $1.346 million annually to the plan. That was before the financial crisis of 2008, when the plan started withdrawing more money than the city was putting in, setting it up for the eventual insolvency projected for 2019.

The resolution before the Board on Tuesday was to revert back to the “BP 1” multiplier of 2.94.

“The change to BP 1 is estimated to save $447,534 in 2016 and $516,297 a year by 2026. This change is one of the actions discussed at the study session to make Fort Smith’s LOPFI Contribution Fund more financially sustainable,” City Administrator Ray Gosack noted in a memo to the Board. “Continued discussion of additional actions to strengthen the fund will be planned for an upcoming study session. The actions will assure proper funding of the city’s pension obligations.”

The BP 1 multiplier is used by a “vast majority” of cities participating in the pension program, Gosack said in the memo.

Several police and fire employees addressed the Board, saying average pay is already low for fire and police officers. They also noted that pay raises have been infrequent over the years, and that the one thing the officers have to look forward to is the retirement plan. Fort Smith Police Chief Kevin Lindsey said lowering the benefit multiplier would “severely demoralize” his department.

Following remarks from police and fire officers, Director Lau said he has been trying for the past 2.5 years to get the city staff and Board to address the problem.

“I’m mad as hell because I’m put in this position,” Lau said, adding that the pension problem is an example of results from a poor budgeting process.

Lau and Pennartz also objected to forming a committee and giving it three months to come up with a solution, with Pennartz said a committee is “just another way of putting off making a decision.” Lorenz agreed, saying that forming a committee is “kicking the pension problem down the road, and the end of the road is getting close.” Pennartz was one of several Directors who said multiplier change is just one part of addressing the problem. She “committed” to the fire and police officers of not pushing the problem forward but instead finding other “revenue enhancements” and general fund budget cuts to address the pension problem.

Director Catsavis was also pointed in his remarks, saying that “past mismanagement and neglect” resulted in the city funding things other than necessities. He noted that the city can find “millions of dollars for waterparks,” but when it comes to finding money for pension shortfalls, “Y’all (police and fire officers) are out of luck.”

A motion by Director Hutchings to form a committee and give them three months to find a solution failed by a 3-4 vote. The Board then voted 5-2 to move the multiplier back to the BP 1 formula. Directors Catsavis and Hutchings voted against the multiplier reduction.

Following the vote, the Board set a June 23 study session solely for the purpose of considering other possible solutions to the pension issue.

Denny Altes has resigned his elected position on the Sebastian County Quorum Court to focus on his full-time job in Little Rock as the state’s drug director. The resignation also nullifies the need for an opinion from the Arkansas Attorney General about Altes’ ability to serve in both capacities.

In a letter dated May 26, Altes notified Sebastian County Judge David Hudson of his decision to resign.

“A few weeks ago I accepted an appointment from the Governor to the position of Arkansas Drug Director. This is a very demanding task and will require much more of my time than I originally thought. Therefore, I think it best for me to resign my position as Justice of the Peach District 13 on the Quorum Court of Sebastian County effective June 1st,” Altes wrote in the letter to Hudson.

Gov. Asa Hutchinson on May 14 named Altes, a former legislator from Fort Smith who was elected to the Sebastian County Quorum Court in November, as the state’s Drug Director. The State Drug Director oversees and coordinates the activities of the Arkansas State Drug Abuse and Prevention Coordinating Council and is responsible for coordination of all alcohol and drug abuse prevention/treatment initiatives in Arkansas.

Altes, 67, served in the House of Representatives from 1999-2003 and represented Senate District 13 from 2003 to 2011. He returned to the House of Representatives in 2011 and represented the 76th District until January 2015.

On May 20, Sebastian County Prosecuting Attorney Dan Shue sent a letter to Arkansas Attorney General Leslie Rutledge to ask her opinion about Altes role on the Quorum Court and as drug director. Shue noted that Altes’ role on the Quorum Court could have potential financial conflicts with his new job as drug director. On Wednesday (June 3), Shue’s office notified the AG’s office that the opinion was no longer needed.

Altes’ replacement will be named by Gov. Hutchinson. Hudson said a resolution formally noting the vacancy is on the Court’s June 16 meeting agenda. That document, when approved, will be sent to Hutchinson’s office as part of the formal notification procedure, Hudson said. The person appointed by Hutchinson may not run for re-election to the position.

This is the second time Altes has resigned from the Sebastian County Quorum Court. In 1999 he ran in a special election for the Arkansas House seat left vacant after the death of Rep. Mac McGehee of Fort Smith. After winning the election, Altes resigned from the Quorum Court.

“I know we have been through this before back in 1999 and I hate to do this to you again but I think it best to devote my full attention to the mission of Drug Director,” Altes wrote in his letter to Hudson.

The new Walmart U.S. executive team told more than 3,000 employees that it’s listening to their concerns. In response to thousands of emails Walmart U.S. CEO Greg Foran received late last year and more than 150 store visits he’s made this year, the company announced several changes underway at the company’s annual meeting for its U.S. employees held in Fayetteville on Wednesday (June 3).

“You know what makes our business better,” Foran told Walmart store employees. “The best part of my job is getting out in stores and learning from associates. There is nothing I like better than hearing about your jobs, your ideas, your hopes and dreams, your frustrations and listening to how we can make your lives easier.”

He said 40 years ago when he first began working in retail, a manager told him “not to think, but do the job.” 

“I knew if I ever had his job I would listen to the workers.”

Wal-Mart used a puppet named “Willie Sellmore” as the representative of store workers to introduce several changes – new name tags, Walmart Radio, tweaks to dresscode and training formats, and many others – that workers applauded. Wille Sellimoresaid he was so tired of listening to the same old Justin Bieber and Celine Dion music in his store, to which Foran announced the come back of Walmart Radio in the coming weeks.

Walmart Radio will be a satellite radio station in Bentonville that plays the music throughout its U.S. store fleet. They have already selected a disc jokey within their corporate ranks in Bentonville works on the retailer's marketing team, according to Deisha Barnett, Wal-Mart corporate spokeswoman.

Judith McKenna, chief operating officer for Walmart U.S., said one employee suggested that the phrase “Our people make the difference” be on their name tags. She asked each worker to look under the seats for an envelope that contained the new name tags. The company set up a tent at the expo fair to personalize the new name tags for those attending the meeting. She said all store workers will be getting a new tag.

Willie also complained about the temperature in his store. He said when it’s hot in Bentonville, it’s ice cold in his store. Wal-Mart regulates its stores’ temperatures from its home office in Bentonville as part of an energy saving plan. McKenna said the home office was listening and they have raised the temperature 1 degree in response which helped quite a lot. Wal-Mart said it keeps its store cooling longer in part because of the heavy traffic in and out. The company does allow store managers to call Bentonville and request an adjustment in times of extreme cold.

McKenna said the U.S. team is working to ensure all Wal-Mart stores are “clean, fast, friendly” and In-stock by the holidays. She said there is a lot going on behind the scenes to reach this goal, but that the entire army of workers will need to get onboard.

Willie Sellmore had plenty to say about the dresscode, which he broke by wearing a St. Louis Cardinals jersey. 

Mike Moore, the executive vice president for Walmart Supercenter operations, told Willie that the dresscode rules were being tweaked again staring this fall. He said store workers would be able to wear black denim or Khaki denim in addition to the navy pant policy that has been in place for the past couple of years. Moore said stockers and lawn and garden workers will be permitted to wear blue jeans and tee shirts.

Moore told Willie that stores also are allowing workers to express their support for certain causes and rally their favorite team on special event days to beef up the “retailtainment” factor. He said even ugly Christmas sweaters would be permitted on the special event days.

No retail meeting is complete without a thorough discussion on merchandising. Michelle Gloeckler, executive vice president, consumables and health and wellness and U.S. Manufacturing Lead, took the stage modeling apparel she purchased at the new Walmart Supercenter in Springdale last Friday.

Gloeckler said Wal-Mart is paying attention to apparel and she thanked the workers for helping push more sales in recent months. She said merchandising the right items can make all the difference, which is why the company has decided to attach cash to its VPI program (Value Producing Items) that are merchandised to bring more sales. VPIs were introduced by Sam Walton years ago, whose favorite VPI was Moon Pie. 

Gloeckler told the workers that cash prices will be given for the top VPI on a monthly basis across regions and companywide. The cash prices at the local level range from $50 for first place and $25 for second place.

Foran shared how one little pie item has garnered $100 million in sales. He said the 50-cent individual-serving boxed pies (apple, cherry, pecan, etc.) which are sold near the bakery section have been a huge hit. He first saw them merchandised in a south Louisiana store at the front of the store. He said that store moves $1,000 worth of pies per week at 50 cents each.

“Our customers love them, It’s family dessert for four for $2,” Foran said.

Willie Sellmore also had issues with the company’s training program, which is managed on a computer in the back of store. He said it’s a no brainer that customer service was a problem when the training puts people to sleep. Julie Murphy, executive vie president over Neighborhood Markets, said the company heard that complaint and is now moving to a new training format they call Pathways. This program provides for actual store experience, not scenario setups. 

Workers were also glad to hear the company will end use of the Telxon inventory tracking devices which are hard to find in the store and getting a signal is also a challenge. Foran said new department managers would receive CM40 devices, which are more like a tablet and provide better connectivity.

He said the checkout promise is also alive and well because customers want it. Wal-Mart promises to add checkers during peak times for quicker service. 

Foran also challenged each of the workers to implement the 10-foot rule which means they will greet any and every customer that comes within 10-feet of them every day. He said the 10-foot Rule if mobilized by everyone will make a huge difference in customer service companywide.

“Taking care of our customers begins with taking care of you. It's that simple. My commitment to you is that we will continue to listen, and, more importantly, act on what we hear,” McKenna said.

Foran also pledged to continue working for associates to make it easier for them to serve customers.

“We know you need the tools to do your job well. You make a difference for customers, so our job in Bentonville is to get you what you need. We will win one customer at a time and if we work together, we will get the army that is Walmart to march and we can make a difference for our customers.”

If there is a measure for how focused Wal-Mart is on using technology to dig deeper into the pockets of consumers, this may be it: 2,500 Wal-Mart employees at “labs” in California and Bentonville tests hundreds of innovations at any given time around the globe. Many of those tests geared toward improving the shopping experience for Millenials and other demographic disruptors.

Wal-Mart’s United Kingdom-based business ASDA just launched a fully-automated collection point for online grocery pickup for shoppers in the United Kingdom. It’s the first of its kind for Walmart ASDA given that it’s just a collection point for online orders that are picked at nearby stores and dropped off at the distribution hub within minutes of the customer’s desired pick up times.

Kieran Shanahan, vice president of grocery home shopping at Walmart Global eCommerce, demonstrated how the new pickup model works at a media session Wednesday (June 3) as part of Wal-Mart shareholders week in Bentonville.

He said shoppers start their orders online either by phone or desktop devices. They pay online and select a convenient pick up time. They notify ASDA by alert when they start toward the destination. They scan a QR code into the kiosk upon arrival and their order is dispensed with seconds. The frozen food is bagged separately and kept cold. Fresh food is bagged together at the correct temperatures. 

Shanahan said the collection point is fully automated with robots that dispense the orders which are loaded by the drivers who bring the orders from the nearby stores. He said the launch was just a week ago and if the format proves successful it will be replicated.

Grocery pick up is being tested in five U.S. markets now by Wal-Mart and in all Sam’s Club. The team in San Bruno, Calif. – home of @WalmartLabs – has fashioned a more streamlined check-in process which Mobile Check. Eytan Daniyalzade of @WalmartLabs demonstrated this new feature. He said one thing they noticed with grocery pick-up was that the time spent waiting to retrieve their order could be shortened to improve the overall experience.

He said the frozen food many times is kept a long way from the pick-up station and it can’t be bagged early for food safety concerns. Daniyalzade said with Mobile Check-in the shopper notifies the retailer when he’s leaving for the store by selecting a prompt on the app. When he arrives in the parking lot he’s sent a message that his order is being picked. By the time he arrives at the pickup station the order should be there or within seconds.

“We are testing this now. When we nail this down on a service perspective it will be rolled out,” he said.

Wal-Mart is also working on geo-mapping its stores in the mobile application so shoppers who activate the instore mode while shopping can type in an item such as “toothpicks” and the map will show them the aisle and map the location out for easy retrieval, according to Justin Toupin of @WalmartLabs.

Geo-mapping is being tested in 10 stores, including Store 100 in Bentonville. He said the tech team is working with store operations to implement the store layouts more broadly. They are doing it without RFID, a spokesman said.

“The full store map serves like a personal shopping assistant,” Toupin said.

Wal-Mart also has worked on a responsive design to its website and mobile application that allows users more flexibility with screen display. The new design is now part of Walmart.com’s check-out page and will gradually be integrated throughout the site.

Lastly Sam’s Club gave reporters a glance at its “Data Cafe” which is a high tech center that crunches data from 100 different sources to help the clubs and stores with merchandising, tracking promotions, heading off logistics delays and other operational issues. 

One application of the data gleaned is to track return trips and then tweak the promos sent to the club member that reflects items they will more likely choose rather than just generic and random offers. The retailer said this focused marketing approach is helping drive more sales from repeat shoppers.

About 55 people gathered Wednesday morning (June 3) near the Interstate 540 and Rogers Avenue interchange in Fort Smith to recognize Beautify Fort Smith’s success in gathering fiscal and physical resources in improving the appearance of the interchange with hundreds of flowers, 124 trees and 2,887 shrubs. (Eat your heart out Knights Who Say Ni.)

Landscaping the four “quads” of the intersection was primarily the idea of Nancy Smreker (pronounced Smerker) who cajoled city and state officials as well as area business leaders to coordinate beautification of the high-traffic entrance to Fort Smith with the more than $70 million renovation of I-540 through the city. The interstate rehab work was completed in June 2014.

The overall landscape project cost around $110,000. The two largest quads were sold for $30,000 each. One was sponsored by First National Bank of Fort Smith President and CEO Sam Sicard, while another was sponsored jointly by Arvest Bank, the Walton Family Foundation and a $20,000 grant from the Western Arkansas Planning and Development District made possible through Sen. Jake Files, R-Fort Smith.

Two other smaller quads were sponsored for $15,000 each by businessman Bennie Westphal and the Family Enterprise Center at the University of Arkansas at Fort Smith. The Family Enterprise Center donation was made with private contributions and not university funds.

Additional funding for the project came from boring Steve Forsgren did irrigation at a cost of $33,000 with no profit. He donated an additional $5,000 to the project.
Smreker said all installation is being handled by Sharum Landscaping instead of volunteers with Beautify Fort Smith. Smreker said the landscape design and work by Sharum was either donated or provided at his cost.

Smreker also said the maintenance of the beds and 200 flats of annual flowers is done by Grant Bowers with Bowers Premium Lawns. Mowing and litter pickup is done by Wendell and Kyle Holland with Triple H Lawn Service.  

Sicard praised Smreker for her “passion, persistence and determination” in pushing to success a “true public-private partnership.” Files said when he thinks of Smreker, two words come to mind: “dogged determination.” Files also used his time Wednesday morning to say Fort Smith is at a “critical crossroads” and challenged those in attendance to have more of a vision and passion for what Fort Smith can be.

“There are opportunities like this all over the city,” Files said, pointing to the interchange.

For her part, Smreker pushed credit to the business community that stepped up to finance the idea.

“They truly did what they needed to do to make this happen,” she said.

Smreker is not finished with her beautification plans. Her next goal is the Grand Avenue and I-540 interchange. It will be a smaller project than the Rogers Avenue job, but is another city entry point that she says needs a makeover.

Other projects Beautify Fort Smith has in the plans include:
• Installation of welcome signs at all Fort Smith city entrances;
• Adding Christmas lights to trees along Garrison Avenue during the holidays;
• Partnering the citywide litter pickups in April and October with tree giveaways;
• Planting trees at all city street interchanges; and
• Getting all interstate interchanges in the city under agreement with the AHTD for contractors to mow the property multiple times per month instead of just a few times per year.

Commentary on obesity in Arkansas, red eyes and good music at Wakarusa, activities at the Harry E. Kelley underwater park and some other things that don’t make sense are part of this week’s report from Dawson Meadows.

The Video Wire is a collaboration between The City Wire and Things To Do In Fort Smith.

Two Fort Smith Directors say the people in municipal leadership posts are as important than the form of government, with one Director saying an effort to force a vote on changing the city’s form of government will not gather enough signatures.

Directors André Good and Keith Lau recently responded to three questions from The City Wire about an effort by Take Back the Fort to place on the November 2016 ballot a vote on changing the city’s government from city administrator to mayor-council.

Don Paul Bales, a leader of the Take Back the Fort petition drive, recently said the group has decided to take “a more methodic pace” to getting a change of government vote on the November 2016 general election ballot.

Take Back the Fort formed in early 2015, provided petition forms to volunteers on Jan. 29, and reported 398 “firm” signatures after the first week of the petition drive in early February. That is the last time the group reported details on signatures.

Fort Smith’s city administrator form of government has a city administrator who is hired and fired by the seven-member elected Board of Directors. Take Back the Fort wants to change to a form of government where the mayor is responsible for city operations and hires a manager to help with those duties. The new form would also have a city council serving in the normal legislative capacity. Any effort to change the city form of government is possible once every four years, according to the city’s municipal code.

According to Fort Smith City Clerk Sherri Gard, it requires 2,518 valid signatures to place the form of government vote on the ballot. That number comes from a requirement that a petition for a ballot action needs 15% of the votes in the previous mayoral election.

DIRECTOR QUESTIONS
Following were the questions sent to the Fort Smith Board of Directors.
• Do you believe the group will be successful in obtaining the required number of valid signatures and working through other rules to get the vote on the ballot?

• Do you support a change, or do you prefer the existing form of government?

• If you support the existing form of government, what do you think the city should/could do between now and November 2016 to encourage voters to vote against change?

Mayor Sandy Sanders and City Directors George Catsavis, Don Hutchings, Tracy Pennartz and Kevin Settle did not respond.

DIRECTOR RESPONSES
While Bales has said city actions between now and 2016 will result in more people willing to support a government change, Good said actions by members of Take Back the Fort may the group’s cause.

“I do not believe the effort will garner enough support to place this measure on the ballot. Why not? I listened to Don Bales at a TBTF meeting (or two). He is very knowledgeable, communicates his ideas well and passionately and he asks thought-provoking questions. But I've read other thoughts and statements in social media that slant the truth and aren't as inviting to attract others to the cause,” Good said in his response to The City Wire.

As to his preference on a form of government, Good is not picking a side.

“I've said before that I did not take a side in changing the form of government. Either form will take trust of its leadership as well as department heads,” Good said.

He said trust and citizen involvement are the keys to municipal success.

“One (form of government) lends itself to hiring methods that could be considered unethical. Both puts trust in either a hired city leader or a voted in leader; is one more trustworthy than the other? Citizens have power either way but they themselves have to be involved and have some understanding of the facts,” Good said.

Lau was not willing to predict if Take Back the Fort would gather enough signatures, but did note that “getting signatures for any ballot issue is a lot harder than most people think.”

Lau doesn’t support the change in government because Take Back the Fort won’t provide a name of someone who could be a mayor in a mayor-council government.

“I have asked their leadership multiple times to give me a person who has the education, experience, and willingness to take the job and I would consider the mayoral form of government. To this point no name has been brought forward,” Lau said.

Like Good, Lau also thinks any form of government requires good people to be successful.

“It all boils down to having the right person in the job – city administrator or mayor. It doesn't matter either way (because) the right person for the job is someone who displays leadership, accountability to the citizens, fiscal responsibility, a can-do attitude,  and the vision to get ahead of problems,” Lau said.

City Director Mike Lorenz sent this statement: “I have no comment. This is nothing but a distraction from real issues that we are facing such as the LOPFI shortfall that has to be addressed immediately. There is far too much that needs my attention daily that effects citizens every day to exert any energy or time on this nonsense.”

Retail giant Wal-Mart and its Sam’s Club division have spent much of the past two days explaining to the media gathered in Northwest Arkansas for shareholders week the importance of grocery pick-up.

Wal-Mart showed off a new pickup and delivery truck model for its grocery pickup and delivery service in Phoenix and San Jose. The delivery truck is bi-functional in that is used in some markets for home delivery in Denver and San Jose, and in Phoenix it is now being used as a pickup site for online grocery orders.

Two weeks ago Wal-Mart began testing off-site pickup in Phoenix with the delivery truck parking in local business centers for two hours each week. The temperature controlled truck is segmented to keep frozen foods, refrigerated foods and items at room temperature. Just like with store pickup being tested in Phoenix, the off-site truck pickup gives shoppers another option for convenience.

Wal-Mart coordinates with area businesses to determine the appropriate times they will park the truck and set up a mobile pickup site. At the site customers pull up and are treated to a bottled water and snack while their online grocery order is retrieved from the truck and loaded into the customer’s car. During this test phase the retailer is trying to get a broad sample of customers to use the service through a reward-type system. First time users are given a welcome box with free sample products, while loyal shoppers are rewarded with a premium box of free items that can range from dog treats to snacks or health and beauty aids.

In Bentonville, Wal-Mart has offered referral cash and up to $10 discounts of first time orders of $50 or more in an effort to woo customers. Wal-Mart told the media Thursday (June 4) during a media tour that the feedback gleaned this far for users has been favorable. Bentonville’s pickup format, the only one of its kind in the country reports 90% of customers have rated the service 4 out of 5 stars.

In Denver, a curbside pickup in local stores in addition to home delivery have been under pilot testing for nearly two years. The company reports that 80% of its orders come from repeat customers. In San Jose, a home delivery service tested for two years reports that 75% of its customers choose Wal-Mart over competitors. Wal-Mart also recently expanded the store pickup for grocery in Phoenix and Huntsville, Ala.

Analysts have said Wal-Mart’s biggest asset is its possible distribution points, and the store pickup option looks like it may be more broadly utilized. That said Kieran Shanahan, vice president of operations for Walmart.com, said the truck off-site model takes advantage of someone else’s real estate and said it could be one way the retailer penetrates areas where land costs prohibit brick and mortar.

Ellen Martinez, operations manager for the Bentonville pickup grocery, uses customer feedback to tweak the items kept in inventory. She said there has been a conscious effort to add more organic produce in recent months because consumers have asked. The retailer did not tell the media how many items are carried in the Bentonville pickup format. One complaint of such options is item selection is not broad enough in some categories such as pet food or consumables. That is not an issue in the store pickup tests as Supercenters carry about 110,000 items in their stores.

Wal-Mart did not disclose how fast it may continue to roll out the grocery pickup noting that there are still lessons to learn and operations to perfect for the service rollout nationwide. The retailer did say this was the fastest it has pulled together a brand new format which went from concept to opening in 30 weeks and it was a cross functional project between grocery operations in Bentonville, @WalmartLabs and the technical team in Bentonville.

Shanahan said Wal-Mart continues to leverage its learnings from ASDA, its retail banner in the U.K., that has been delivering groceries to homes for 15 years. He said that market moved faster to delivery, while pickup there has lagged behind. He also said Wal-Mart is committed to giving customers choices and pickup grocery is one area where that Steve Bratspies, executive vice president of grocery, said Wal-Mart aims to win.

Sam’s Club also is working with @WalmartLabs on its own version of club pickup. Sam’s Club just unveiled mobile check-in at its clubs across the country that allows shoppers to place their order online before midnight, and then pickup in the club the following day.

In Bentonville, Sam’s Club is also testing drive-thru pickup using the same parameters. Club execs told the media on Thursday that the drive-thru pickup is gaining popularity. The local club has set aside an area with a covered drive-thru area. A shopper gets out of their vehicle comes into the club and signs for the merchandise which is loaded in their vehicle. At this time the mobile check-in is not linked to the drive-thru service being tested.

Sam’s Club also shared a glimpse into a new pilot coming soon which will offer a curbside pickup option attached to the mobile check-in application.

The U.S. Environmental Protection Agency released a landmark report on hydraulic fracturing Thursday (June 4) that the oil and gas industry is hailing as a victory for its environmental stewardship.

The EPA assessment, done at the request of Congress, shows that while hydraulic fracturing activities in the U.S. are carried out in a way that have not led to widespread, systemic impacts on drinking water resources, there are potential vulnerabilities in the water lifecycle that could impact drinking water.

The EPA assessment follows the water used for hydraulic fracturing from water acquisition, chemical mixing at the well pad site, well injection of fracking fluids, the collection of hydraulic fracturing wastewater (including flowback and produced water), and wastewater treatment and disposal.

“EPA’s draft assessment will give state regulators, tribes and local communities and industry around the country a critical resource to identify how best to protect public health and their drinking water resources,” said Dr. Thomas A. Burke, EPA’s Science Advisor and Deputy Assistant Administrator of EPA’s Office of Research and Development. “It is the most complete compilation of scientific data to date, including over 950 sources of information, published papers, numerous technical reports, information from stakeholders and peer-reviewed EPA scientific reports.”

The American Petroleum Institute, which represents the oil and gas industry, applauded the report, saying that hydraulic fracturing has not led to widespread, systemic impacts on drinking water resources thanks to the safety and effectiveness of state and federal regulations, and current industry practices.

“After more than five years and millions of dollars, the evidence gathered by EPA confirms what the agency has already acknowledged and what the oil and gas industry has known,” said API Upstream Group Director Erik Milito. “Hydraulic fracturing is being done safely under the strong environmental stewardship of state regulators and industry best practices.”

The API also said that hydraulic fracturing has been used safely in over a million wells, “resulting in America’s rise as a global energy superpower, growth in energy investments, wages, and new jobs.” The powerful industry trade group said hydraulic fracturing supports more than 2 million U.S. jobs, has increased supplies of oil and natural gas, and has helped to put downward pressure on energy prices.

On the other hand, the Sierra Club countered that the EPA study ignored critical questions and only offered a glimpse of the dangers posed by fracking.

“The EPA’s water quality study confirms what millions of Americans already know – that dirty oil and gas fracking contaminates drinking water,” said Sierra Club Executive Director Michael Brune.

“Unfortunately, the EPA chose to leave many critical questions unanswered,” Brune added. “For example, the study did not look at this issue under the lens of public health and ignored numerous threats that fracking poses to drinking water. The EPA must conduct a comprehensive study that results in action to protect public health.”

Despite Brune’s counter argument, the EPA report is widely seen as a win for the oil and gas sector. By Thursday evening, the EPA report was showing up on energy-related blogs, news sites and in email alerts that report on the drilling and upstream oil and gas sector.

The Houston Chronicle’s “Fuel Fix” blog had the EPA fracking study as its top story and cited several oil and gas industry leaders who gave rare kudos to the federal environment agency. Washington, D.C.-based TheHill.com had a headline story saying the EPA fracking report gives Republicans “new ammo” to fight further regulations against the controversial drilling technique used to induce gas to flow through to the surface from “fractures” in underground shale plays.

To view the full EPA report, executive summary and news release, click here.
www2.epa.gov/hfstudy

In Arkansas the oil and gas industry also scored another victory on Thursday. A divided Arkansas Supreme Court ruled that the state of Arkansas illegally collected taxes on sand used by the industry for natural gas drilling.

The state’s high court said the sand should have been tax-exempt. The state Department of Finance and Administration will begin refunding $24.5 million to four companies that were part of the lawsuit.

Rob Walton, 70, son of Wal-Mart founders Helen and Sam Walton, is stepping down after 23 years as Board Chairman of the world’s largest retailer. However, the powerful chairmanship will remain in the Walton family with Rob’s son-in-law Greg Penner becoming chairman at the end of Friday’s (June 5) company shareholders meeting.

Penner, 45, was named vice chairman and Walton’s chosen successor at the 2014 shareholder meeting. He is only the third board chairman in the company's history. Wal-Mart Stores is one of eight family owned Fortune 500 companies and is deemed a controlled company given the founder’s family owns at least 50% of the outstanding shares.

The Walton Family in early April said it was divesting roughly 6% of its majority stake in Wal-Mart Stores over the next few years into a new trust entity as the family's interest has risen to more than 50% in recent years from corporate funded share repurchases.

According to information provided by the Bentonville-based retailer, Penner began his career at Goldman Sachs & Co. as an analyst specializing in corporate finance. He joined Walmart as a management trainee in Siloam Springs and held a number of positions in the company, including senior vice president of finance and strategy for walmart.com and senior vice president and CFO in the company’s operations in Japan. Since 2005, he has been a general partner of investment management firm Madrone Capital Partners. Penner joined the Walmart Board of Directors in 2008. He has served as chair of the Technology and eCommerce Committee and held positions on the Global Compensation and Strategic Planning and Finance Committees.

News of the board leadership change was made during the 2015 Wal-Mart shareholders meeting held Friday (June 5) at Bud Walton Arena on the University of Arkansas campus in Fayetteville. Wal-Mart estimated that more than 14,000 people attended the event. Actress Reece Witherspoon was the celebrity emcee of the meeting.

The announcement saw former Wal-Mart Stores CEO David Glass return to the shareholders’ stage. Glass was CEO in 1992 when Rob Walton was named Board Chairman after the death of Sam Walton. Glass said he and Sam recruited Rob, who was working then as a lawyer in Tulsa, to the company to help them with growing legal needs. Glass said Rob was able to “fix whatever we screwed up.” Glass also said Rob was instrumental in developing the early processes that allowed the company to buy real estate and build stores “without making mistakes.”

Wal-Mart Stores CEO Doug McMillon also took the stage to praise Rob for his work. McMillon said Rob “enabled us to think long term.” McMillon also announced that in recognition for Rob’s years of service, the company is placing 2,400 acres of land in protection. The land stretches from Beaver Lake up to the Arkansas-Missouri border.

In a Q&A after the shareholders meeting, McMillon said he looks forward to working Penner in part because of his leadership and knowledge with e-commerce. He reminded the media that Rob Walton will remain on the board and jokingly said he will be watching.

“Someone asked me today what Mr. Walton’s role would be to, which I answered, 'Whatever he wants,'” McMillon said.

The UFCW International Union, which has for many years called for an independent, non-Walton Family board chairman, objected to the selection of Penner.

“It’s business as usual at Walmart and once again, it’s the hard-working men and women who contribute to Walmart’s success who are paying the price,” the union said in a statement. “Instead of listening to and respecting Walmart worker shareholders who have been calling on Walmart and the Waltons — heirs to the Walmart empire — to a implement a new policy establishing an independent chairperson, Walmart and the Waltons have once again decided to elevate family members to powerful positions.”

Penner, speaking Wednesday (June 3) to employees in the International segment, said in the 20 years he's been around Wal-Mart he's been most amazed by the people who have helped grow the company. Penner said the board and corporate leadership is there in support and to back the efforts of the workers out on the front lines.

He reflected on the international growth that has taken place since he worked for Walmart in Japan integrating the “Every Day Low Price” message in that country years ago.

In the coming months Penner – who spoke Japanese to the delegation from Japan – said he's looking forward to visiting South Africa and Brazil at upcoming events. He encouraged the global associates to soak up the culture and make connections while in Northwest Arkansas so they can take home and share in the stores.

The iconic baseball cap synonymous with Wal-Mart founder Sam Walton is headed to the Smithsonian Museum In Washington, D.C., according to chairman Rob Walton who took the stage wearing the hat at the company’s 45th annual shareholders meeting in Fayetteville on Friday (June 5). 

He said the cap was a favorite of his father throughout his lifetime. Even when he became a billionaire, Sam Walton wore the cap until his death in 1992.

The Smithsonian's collections represent the nation's heritage, art from across the globe, and the diversity of the natural and cultural world. The wide ranging scope in Smithsonian collections includes ancient Chinese bronzes, the “Star Spangled Banner” that flew over Fort McHenry, a 3.5 billion-year-old fossil, equipment used in the Apollo program, the ruby slippers featured in The Wizard of Oz, and presidential memorabilia. 

The National Museum of American History of the Smithsonian Institution will open the "American Enterprise" exhibition the end of this month. In the exhibition, Sam Walton and Wal-Mart are featured and Sam is highlighted, according to Wal-Mart corporate spokeswoman Molly Blakeman. She said the display featuring Sam will feature his cap, one of two he wore during his final days before passing away. 

The exhibition chronicles the history of American enterprise from a number of different vantage points. The Walmart Museum has been working with the Smithsonian to ensure accuracy of Walmart's story points as well as authenticity of artifacts. Sam's cap is one of those artifacts.

SERVICE REWARDED
Rob Walton has served as link from the past in his role as board chairman for 23 years. As Walton steps back from the chairman’s role with the Wal-Mart board of director’s, CEO Doug McMillon commended him for his sustainability focus over the years. 

McMillon said as part of the company’s protect Acres for America program, they are protecting nearly 2,400 acres near Beaver Lake. He said the rolling hills and dense will become a protected corridor here in Northwest Arkansas. The property is to be named the Rob Walton Nature Preserve and stretches from Beaver Lake to within one mile of the Missouri border. It will help create a protected forested corridor between Hobbs State Park in Arkansas and the Mark Twain National Forest in Missouri, according to Walmart corporate spokesman Randy Hargrove.

He said the new preserve expands the existing Devil’s Eyebrow unit within the Beaver Lake Wildlife Management Area to more than 2,400 acres. The preserved land protects several natural springs, underground caves and aquifers found in this unique watershed. This nature preserve also supports one of the highest concentrations of rare plant species in Arkansas — including several that are considered globally rare — and harbors numerous species of fish and wildlife native to the Ozark region.

McMillon said it’s a small token of appreciation to Walton and his service and direction in sustainability leadership for more than two decades.

VEST AFFINITY
Sam Walton’s ball cap was not the only iconic image honored this week by Wal-Mart execs. Thirty years ago Walton added the phrase “Our people make the difference” to the company’s name tags. That action was resurrected this week by Judith McKenna, chief operations officer for Walmart U.S., who unveiled the name tags on Wednesday at the Walmart U.S. associates meeting. 

McKenna was asked Thursday what her favorite part of the week had been and she said revealing the new “Our people make the difference” name tags during shareholder week. McKenna said that’s fitting and brings the concept full circle. That simple message has been the major focus of this week’s meeting and it dons every navy blue vest and the new world flag vests worn by workers and top executives this week.

Walmart U.S. CEO Greg Foran said he’s inspired every time he wears the vest which he wore while on stage during his presentation at Friday’s annual meeting. He also wore the vest Wednesday during the U.S. associates meeting and on Thursday during the media question and answer session. 

“I wear it often because I am inspired by you, your determination, hard work and your creativity. But most of all I am inspired by your service to our customers,” Foran said at the Friday’s meeting.

UNHAPPY CUSTOMERS
The meeting was not all warm and fuzzy. Several shareholder proposals were presented at the business portion of meeting during which Wal-Mart employees and union representatives complained about the company’s pay, lack of independent voices on the Wal-Mart Board of Directors, and executive compensation.

One speaker noted that Wal-Mart executive were receiving hefty bonuses even with the company spending millions of dollars on a criminal investigation. Alleged violations of the Foreign Corruption Practices Act by Wal-Mart has cost the retailer more than $612 million in legal fees and compliance restructuring costs over the past three years. When the case is finally resolved, analysts expect the fines and total costs could reach up to 9% of the company’s total gross earnings or approximately $7 billion.

Union officials have praised the retailer’s move to raise wages, but have said the changes are not near the $15 per hour starting pay they say the company can afford.

The five shareholder proposals that were not supported by the Wal-Mart Board were not approved in shareholder voting.

The state’s congressional delegation returned last week to Washington, D.C. to tackle several issues including infrastructure and national security.

DELEGATION ANNOUNCES AIRPORT PROJECT FUNDING
At least 11 airports in the state will receive nearly $6.5 million in funding to help with facility upgrades and expansions, the state’s congressional delegation announced Wednesday.

The airports receiving funding are as follows:
Ash Flat: Sharp County Regional Airport will receive $440,325 to rehabilitate the airport apron and runway.
Benton: Saline County Regional Airport will receive $528,183 to expand the airport apron.
Clarendon: Clarendon Municipal Airport will receive $206,764 to extend taxiway.
Clinton: Clinton Municipal Airport will receive $194,776 to install taxiway lighting.
Corning: Corning Municipal Airport will receive $244,332 to rehabilitate the airport apron.
De Witt: De Witt Municipal Airport will receive $335,250 to expand and rehabilitate the airport apron.
Newport: Newport Municipal Airport will receive $557,072 to install airfield guidance signs, miscellaneous NAVAIDS and to rehabilitate the runway.
Russellville: Russellville Regional Airport will receive $124,184 to acquire land for approaches.
Searcy: Searcy Municipal Airport will receive $150,000 to rehabilitate the airport runway.
Texarkana: Texarkana Regional –Webb Field will receive $3,403,151 to rehabilitate the airport runway.
Waldron: Waldron Municipal Airport will receive $318,812 to rehabilitate the airport runway.

COTTON CO-SPONSORS CUBA BILL
A bill that would ensure that any increase in resources to Cuba reach the Cuban people by banning financial transactions with the Castro regime’s military and security services was introduced this week.

U.S. Sen. Tom Cotton, R-Ark., is a co-sponsor for the Cuban Military Transparency Act. The bill was also co-sponsored by Sens. Robert Menendez, D-NJ, Orrin Hatch, R-UT, Ted Cruz, R-TX, Cory Gardner, R-CO, David Vitter, R-LA and Mark Kirk, R-Ill.

“The United States must stand squarely on the side of the Cuban people and take every possible action to weaken the brutal rule of the Castro regime,” Cotton said. “This bill is one such step. It denies the Castro security services hard currency and aims to hold the regime accountable for its past crimes and misdeeds.”

The bill would:
• Identify and prohibit financial transactions with the Ministry of the Revolutionary Armed Forces, the Ministry of the Interior, their sub-divisions and leadership;
• Amend the Department of State’s Rewards for Justice Program to include the arrest or conviction of the individuals responsible for the February 24th 1996 deadly attack on United States aircraft;
• Direct the Attorney General to coordinate with Interpol regarding the capture of U.S. fugitives in Cuba;
• Direct the President to provide reports on the role of the Ministry of the Revolutionary Armed Forces and the Ministry of the Interior in Cuba and the return of property that has been confiscated by the Government of Cuba; and
• Provide exemptions for current “cash-in-advance” sale of agricultural commodities, medicine and medical devices and remittances to family members and transactions related to democracy promotion programs.

WOMACK NAMES SERVICE ACADEMY APPOINTEES
On Thursday, Rep. Steve Womack, R-Rogers, named 14 students that were nominated to the nation’s Service Academies. The students, who graduate high school this year, are set to graduate from the Service Academies in 2019.

The students are:
United States Military Academy:
Jordan Cascio, Homeschooled (Bella Vista)
Elisha Conner, Harrison High School
William Farrell, Northside High School
Jason Hunt, Bentonville High School
Harrison Rooney, Bentonville High School

United States Naval Academy:
Amanda Agana, Fayetteville High School/Naval Academy Preparatory School
David Carnahan, Gravette High School/Naval Academy Preparatory School
Jackson Mitchell, Fayetteville High School
Bennett Moehring, Bentonville High School
Michael Peyton Wood, Har-Ber High School

United States Air Force Academy:
Alexandra Bochart, Bentonville High School
Dillan Hett, Pottsville High School
James McMahon, Fayetteville High School

United States Merchant Marines Academy:
Haley Galloway, Bentonville High School

Air Force Academy Preparatory School:
Joseph Saucier, Rogers Heritage High School
Mitchell Williams, Bentonville High School

Womack said he appreciated the sacrifice and patriotism of the students heading to the military academies.

“These young men and women represent America’s finest, and I am proud that they will not only represent Arkansas’s Third District with honor and distinction at our prestigious U.S. Service Academies, but that they will become future leaders in our military,” Womack said. “Their patriotism is humbling. I extend my most sincere congratulations and gratitude to the 2015 appointees.”

WESTERMAN SPONSORS FOREST BILL
On Thursday, Rep. Bruce Westerman, R-Hot Springs, introduced a bill that he said would help protect forests around the nation.

The Resilient Federal Forests Act of 2015 would provide protection to the national forest system by implementing proactive management standards intended to lessen the threat of wildfires and other risks, Westerman said.

“For far too long, our nation’s forests have been fighting a battle for survival. The conflict is not with logging but with the effects of reactive versus proactive management which has resulted in costly confrontations with wildfire, disease, and insects,” Westerman said. “This bill would utilize tools already available to the U.S. Forest Service and provide protection to America’s forests by reducing the risks of wildfires through proper management techniques.”

The bill was co-sponsored by Reps. Ryan Zinke, R-Mont., Glenn Thompson, R-Pa. and Ann Kirkpatrick, D-Ariz.

The bill has received praise from House Committee on Natural Resources Chairman Rob Bishop of Utah, who also noted Subcommittee on Federal Lands Chairman Tom McClintock’s work on the legislation.

Sam’s Club CEO Rosalind Brewer told the media last week that the wholesale club continues to find ways to pack more value into its memberships in response to poor first quarter numbers and competitive pressures in the retail sector.

Brewer has said more than once that first quarter sales were disappointing and unacceptable. Comp sales were 0.4% and operating income declined 10.9%. Brewer told the media that the turnaround plan includes more services, an expansion of its generic prescription savings, loans for micro businesses and more convenience with a new mobile check-in for online orders that are picked up in the clubs. 

On a positive note, Brewer said consumers are responding to the club’s expanded services. Sam’s grew its Plus membership by 7.4% in the last quarter. Plus membership is $100 a year, with 16 “add-on” memberships at $45 each.

FREE, 4 & 10
Brewer said Sam’s Club aims to be a destination for health and wellness for its growing member base. She said Sam’s Club unveiled in February a generic prescription plan for its Plus members. The program called Free, 4 & 10. The free drugs are available in 35 states including Arkansas. Neighboring Oklahoma however, is among 13 states that have state laws prohibiting free prescriptions. The $4 and $10 prescriptions are available in all states.

Free, 4 & 10 provides Plus members with access to five generic drugs used to treat diabetes, Alzheimers, mental, prostate and women’s health for free:
• Donepezil for Alzheimers;
• Pioglitazone for diabetes;
• Finasteride for prostate;
• Escitalopram for depression, anxiety; and
• Vitamin D 50,000IU for osteoporosis. 

Brewer said the five free drugs were not chosen randomly, but selected from member feedback.

“Our members told us they need help with health care issues. We continue to look for ways to offer more in this area because we know if we get this right our members will return again and again. It’s the reason Sam’s Club Pharmacy received the top ranking among all mass market retailers last year,” she told shareholders on Friday (June 5).

Aside from the five drugs above, the program also provides Plus and Business members access to more than 200 generic drugs for $4 in specified quantities as well as more than 400 generic prescription drugs are available for $10.

Elaine Webb, a Plus member at Sam’s Club No. 8243 in Raymore, Mo., was paying $130 cash every month for her prescription, according to Brewer. Webb asked her doctor to prescribe another drug, but her doctor told her it was the only one that class. Webb was encouraged to shop around for a better price. 

“When she came to her Sam’s Club to renew her membership Elaine (Webb) upgraded to a Plus member and found out her prescription would be free. That’s a savings of $1,500 in one year for this family,” Brewer told shareholders on Friday (June 5).

SMALL BUSINESS LOANS
Brewer reiterated the importance of service to micro businesses for Sam’s Club. She said “micro businesses” with less than 10 employees from bakers to caterers to daycare owners have been some of the slowest to recover through the deep economic downturn seven years ago. 

“Many have been hesitant to take out a loan, but I can tell these micro businesses are much smarter today having gone through such a lengthy recovery,” Brewer said.

Sam’s Club has launched its Business Lending Center which provides access to capital for small business owners. The Center connects business members to responsible lenders and credit options – up to $350,000 – through Lending Club, SmartBiz and Sam’s Club Business MasterCard. Brewer said Sam’s Club invested $13 million into these agencies that can be loaned to qualifying members.

“Sometimes a small business may need $25,000 or even a $1,500 loan for their business but these are not always easy to get. Our investment should help,” she said.

Lending Club provides access to peer-to-peer business loans and SmartBiz provides access to 7(a) SBA Loans. The Business Lending Center also increases business access to cash flow through the Sam’s Club Business MasterCard. Members using the Business Lending Center will receive exclusive savings of 20% on loan-related fees.

MOBILE CHECK-IN
Brewer said Sam’s Club members like the Click & Pull option that allows small businesses to order online before midnight and then pick up the items in-club the following day. She said the club also has extended its 7 a.m. opening hours to accommodate micro businesses that shop every day.

She said the online order service is now called Club Pickup.

“They also told us we could be better so our digital team has now given them access to an easier check-in process via our new Mobile Check-in application launched this week,” Brewer said on June 4.

Each club has a kiosk check-in set up near the club entrance. But the check-in process begins prior to that. When a member places their online order there is a response option prompt that they are asked to activate when they are headed to the club for pickup. Once that alert is sent from the member that they are leaving for the store, local club workers retrieve that order.

Once the member enters the parking lot and trips the geo-fence the club worker then heads to the front of the store toward the kiosk check-in area. The member scans the QR code from their phone or signs in by name and their order should be there simultaneously or within 60 seconds.

Brewer said this mobile check-in helps members save time which is a valuable  commodity for small business owners. Because the order also is paid online, it allows business owners to send one of their workers to collect the order.