Wal-Mart spent more than $4 million on lobbying efforts in Washington in the past 18 months compared to $6.6 million it collectively spent in the prior seven years, according to federal lobbying reports.
In just the first six months of 2007, Wal-Mart spent nearly $1.8 million - a pace that should enable the retail giant to handily break the nearly $2.5 million it spent for all of 2006.
Wal-Mart spokesman David Tovar declined to comment to The Associated Press on the reason for the increase, noting that the company's spending depends on the congressional agenda.
In 2007, that agenda included immigration reform legislation that failed and a minimum wage-hike bill that passed. Wal-Mart had argued that higher wages would push up the cost of goods for customers.
According to federal lobbying reports, Wal-Mart also pushed for tougher tactics against organized retail crime, legislation promoting electronic health records and other technology to reduce health-care costs. Other issues listed on the disclosure form included legislation tied to unions, international trade matters, currency, taxes and banking.
Wal-Mart, which established a Washington office about 10 years ago, spent just $140,000 in 1999. It spent about a $1 million annually for the next several years, before increasing its lobbying representation and funds in 2005 amid increased criticism of labor practices and benefits.
Overall, the retail sector hasn't invested much in lobby efforts compared to industries such as defense, energy and pharmaceutical. According to the AP, Wal-Mart's $1.8 million in the first six months compared with $4.8 million spent by Lockheed Martin Corp. Among other retailers, Target Corp. spent $100,000 in lobbying expenses in the first six months of 2007, and Sears Holding Corp., about $141,000.
Brian Dodge, spokesman for the Retail Industry Leaders Association, said in the last few years his group's lobbying efforts have increased involvement in various issues, including product safety, the environment, organized retail crime, health insurance and jobs. The retail industry, according to Mr. Dodge, must deal with more complex matters, such as imported products involving increased government oversight by several agencies.
"For a long time, Sam Walton really didn't think that Wal-Mart should be involved in politics," added Lee Drutman, a University of California at Berkeley doctoral student who is writing his dissertation on lobbying. "That was part of his actual belief so Wal-Mart was late to the game."
Discussion Questions: Have retailers been at a disadvantage compared to other industries when it comes to pushing their agendas on Capital Hill and in state houses around the nation? Are retailers in general becoming more focused on lobbying efforts? In what areas do you think lobbying dollars are best put to use?