Nibbling at Wal-Mart's magic.

We asked some of our shoppers if they had heard anything about a possible lawsuit against Wal-Mart by a large group of their female employees. Responses from those who have heard something about it suggest that Wal-Mart's community and employee troubles may already be costing them some consumer good will and may even be nibbling at their sales.

The perception that employees are happy with their employer makes shoppers feel much better about the stores they choose to shop. Companies that win awards and surveys for being the best places to work use that information in their marketing communications because it resonates with customers who feel good about shopping where employees feel good.

[ILLUSTRATION OMITTED]

Beyond the cost advantages of being non-union, the "happy employee" concept has been part of the Wal-Mart mystique for many years. The financial payoff that may be involved in settling the women's suit will probably have some big numbers, but by chipping away at their happy employee image, the news about the lawsuit may be more damaging to Wal-Mart's image and future sales than a billion or more in settlement costs.

Happy Summer! Mona Doyle