Police catch ‘nonchalant’ man accused of killing 3 at Colorado Walmart

Patrick Carnes is evacuated in a Walmart cart by SWAT medics from the scene of a shooting at a Walmart where Carnes was shopping in Thornton, Colorado.

By Keith Coffman

THORNTON, Colo. (Reuters) – Police in Colorado on Thursday captured a man who they had said calmly walked into a suburban Denver Walmart and fatally shot three people at random before driving away.

Scott Ostrem, 47, was taken into custody without incident a day after the shooting, following a tip from the public, the Thornton Police Department said.

Police spokesman Victor Avila told reporters Ostrem had “a minimal criminal history” and that authorities had not yet established a motive for the rampage.

Video broadcast from CBS affiliate KCNC-TV showed the suspect being handcuffed by police against the side of an SUV as FBI agents carrying rifles and wearing body armor looked on.

KCNC-TV said police SWAT team officers had ringed the suspect’s last known address in suburban Adams County on Thursday morning when Ostrem drove past and was spotted. He was followed by law enforcement and journalists, KCNC-TV reported, and was arrested in the nearby suburb of Westminster following a “quick pursuit.”

Police had earlier released a surveillance camera photograph of a middle-aged white man wearing a black jacket and blue jeans. They also published a photo of the red four-door Mitsubishi hatchback he was believed to have fled in.

Ostrem “nonchalantly” entered the store in Thornton, about 10 miles (16 km) northeast of downtown Denver, and opened fire on shoppers and employees shortly after 6 p.m. (8 p.m. EDT) on Wednesday, Avila had earlier told reporters, citing witness accounts.

A person described by police as a person of interest. Thornton Police Department/via REUTERS

A person described by police as a person of interest. Thornton Police Department/via REUTERS

Two men were killed in the shooting and a woman who was shot was taken to a hospital where she died, according to police. No one else was wounded, police said.

“What we have determined is that it is random as of right now,” Avila told reporters. “As witnesses stated, the person came in and just shot towards a group.”

The Walmart had been quickly surrounded by police and fire crews. Authorities initially said “multiple parties” had been injured. Avila said there was no indication the shooting was an act of terrorism and no one had claimed responsibility.

“We can’t rule anything out,” he said.

Walmart customer Aaron Stephens, 44, of Thornton told Reuters he was buying groceries at a self-checkout stand when he heard gunshots and ricocheting bullets.

“The employees started screaming and the customers started screaming” as people began to flee, he said. “I ran out, too, because I didn’t want to get shot.”

NBC television affiliate 9NEWS reported a woman whose son was in the Walmart said he heard about 30 gunshots.

Early accounts of multiple casualties had revived painful memories for the Denver area, where a gunman killed 12 people in 2012 at a midnight screening of the Batman movie “The Dark Knight Rises” at a theater in the suburb of Aurora. The shooter, James Holmes, is serving a dozen consecutive life sentences without the possibility of parole.

In 1999 two 12th-graders fatally shot 12 fellow students and a teacher at Columbine High School in suburban Jefferson County. The pair, Eric Harris and Dylan Klebold, then committed suicide in the campus library.

 

(Additional reporting by Gina Cherelus in New York and Brendan O’Brien in Milwaukee; Editing by Daniel Wallis and Bill Trott)

 

In Puerto Rico, acute shortages plunge the masses into survival struggle

Local residents wait in line during a water distribution in Bayamon following damages caused by Hurricane Maria in Las Piedras, Puerto Rico, October 1, 2017

By Robin Respaut and Nick Brown

FAJARDO, Puerto Rico (Reuters) – Brian Jimenez had burned through dwindling supplies of scarce gasoline on a 45-minute drive in search of somewhere to fill his grandmother’s blood thinner prescription. He ended up in Fajardo, a scruffy town of strip malls on Puerto Rico’s northeastern tip, where a line of 400 waited outside a Walmart.

The store had drawn desperate crowds of storm victims who had heard it took credit or debit cards and offered customers $20 cash back – a lifeline in an increasingly cashless society. Store employees allowed customers in, one by one, for rationed shopping trips of 15 minutes each.

Then, at noon, the store closed after its generator croaked and before Jimenez could get inside to buy his grandmother’s medicine.

“Every day we say, ‘What’s the thing that we need the most today?’ and then we wait in a line for that,” said Jimenez, a 24-year-old medical student from Ponce, on the island’s southern coast.

By Saturday, 11 days after Hurricane Maria crippled this impoverished U.S. territory, residents scrambled for all the staples of modern society – food, water, fuel, medicine, currency – in a grinding survival struggle that has gripped Puerto Ricans across social classes.

For days now, residents have awoken each morning to decide which lifeline they should pursue: gasoline at the few open stations, food and bottled water at the few grocery stores with fuel for generators, or scarce cash at the few operating banks or ATMs. The pursuit of just one of these essentials can consume an entire day – if the mission succeeds at all – as hordes of increasingly desperate residents wait in 12-hour lines.

As criticism mounts about a slow disaster response by President Donald Trump’s administration, residents here in Fajardo said that had seen little if any presence from the federal government. Across the island, the sporadic presence of the Federal Emergency Management Agency or the U.S. military stood in sharp contrast to their comparatively ubiquitous presence after hurricanes Harvey and Irma recently hit Texas and Florida.

The severe shortages have thrown even relatively affluent Puerto Ricans into the same plight as the hundreds of thousands of poor residents here. The broad humanitarian crisis highlights the extreme difficulty of getting local or federal disaster relief to a remote U.S. island territory with an already fragile infrastructure and deeply indebted government.

Even those here with money to spend now cannot often access it or find places open and supplied to spend it as stores are shuttered for lack of electric power, diesel for generators, supplies or employees.

Jimenez’s failed trip to Walmart came after chasing groceries at a store near Yabucoa, near where his grandmother lived. He planned to spend the next day in one of the miles-long gas lines that snake from stations onto highways and up exit ramps.

At the beginning of many lines were stations already out of gas – but motorists still waited, hoping a fuel supply truck would eventually arrive.

“We wasted gas getting here and going back,” Jimenez said as he watched police usher dejected customers away from Walmart’s entrance. “The gas lines are ridiculous. Fifty cars is wonderful. Most are 100-plus cars.”

Another customer turned away from the Walmart, Daniel Santiago, 51, said he had waited in a gas line for 12 hours one day and 14 hours the next. Neither attempt had been successful, so he, his wife and three daughters had walked three miles to the Fajardo shopping complex, where they waited in line for the Econo grocery.

“We have to do this every day,” Santiago said. “Yesterday, we came down walking. The day before that, we walked up a really big hill to try to get a signal to contact our family.”

That had not worked either.

 

UNFORTUNATE REALITY

Even before the storm hit and knocked out the island’s dilapidated electric grid – an outage expected to persist for months – Puerto Rico was suffering through a growing economic crisis that dates back to 2006. The island has an unemployment rate more than twice the U.S. national average and a 45 percent poverty rate.

The island had earlier this year filed the biggest bankruptcy in U.S. municipal history in the face of a $72 billion debt load and near-insolvent public health and pension systems.

In an interview with Reuters on Saturday, Puerto Rico Governor Ricardo Rossello said relief efforts were still focused almost solely on saving lives; restoring basic necessities to the masses would come later.

“We’re not at the phase where we are focusing on comfort,” Rossello said. “Unfortunately, that’s the current reality that we’re dealing with.”

His team was still scrambling to open roads to communities blocked by landslides, and to deliver food, water, medicines and generators to remote homes and hospitals.

The island’s battered infrastructure left Manny De La Rosa, 31, to crisscross the island with his pregnant wife, Mayra Melendez, also 31. They were trying to find places to spend the $40 in coins they had extracted from the family piggybank.

“All of our money is held up in the bank,” De La Rosa said.

They live in Luquillo in the northeast, but found an ATM in Humacao on the southeastern coast. Their cell phones vibrated to life for the first time alongside a stretch of highway in Isla Verde, nearly an hour west of their home.

Now, they were in line in Fajardo, hoping to buy supplies with a credit card to conserve their cash.

“We see these lines, and we think, ‘We’re not even going to make it before the money runs out,’” Melendez said, standing in front of the Walmart.

A military helicopter flight over a residential area following damages caused by Hurricane Maria near Caguas, Puerto Rico, October 1, 2017

A military helicopter flight over a residential area following damages caused by Hurricane Maria near Caguas, Puerto Rico, October 1, 2017 REUTERS/Carlos Barria

DOWN TO $14

In the economically depressed agricultural town of Salinas, an hour-and-a-half drive from Fajardo on the island’s southern coast, 93-year-old Lucia Santiago sat outside in a lawn chair and rested her swollen legs.

Her son, Jose Melero, 67, brought her food that had been delivered by the town’s mayor on a golf cart.

“We have to be out here, because we’d die from the heat in there,” he said, gesturing toward the house.

The two had started eating less every day to conserve provisions. That day, they had split a can of ravioli and a piece of bread.

Melero was down to $14 of cash without the means to withdraw more.

“I have no idea how I’m going to get through the next few days,” he said. “We have money, but we just can’t get to it.”

Others in isolated areas struggled to find medicine. U.S. Army veteran Sandalio DeJesus Maldonado, 87, took a 7 a.m. ferry from his home on Culebra, an island off Puerto Rico’s eastern coast, to Fajardo, to refill blood pressure and prostate medications.

The hurricane had shuttered Culebra’s only pharmacy, DeJesus said.

In Fajardo, DeJesus waited at an overcrowded Walgreens because he did not have enough gas to drive to the Veterans Affairs hospital where he normally filled his prescriptions.

As he waited in line late Saturday morning, DeJesus fretted that he would not be able to return to Culebra until after 5 p.m., when the only scheduled ferry was slated to depart.

“All I need is a few pills,” he said.

 

 

(Additional reporting by Jon Herskovitz; Writing by Brian Thevenot; Editing by Mary Milliken)

 

Exclusive: Not Made in America – Wal-Mart looks overseas for online vendors

FILE PHOTO: A Walmart store is seen in Encinitas, California, U.S. on April 13, 2016. REUTERS/Mike Blake/File Photo

By Nandita Bose

CHICAGO (Reuters) – Walmart.com, trailing Amazon.com Inc in the number of goods for sale on its website, is recruiting vendors in China and other countries to boost its online offerings in a pivot away from Wal-Mart’s Made-in-America campaign.

While there is a financial incentive behind the move, Wal-Mart’s decision comes out of necessity: not all the goods its customers want – ranging from jeans to bicycles to beauty products – are manufactured within the United States.

For graphic on price of patriotism click: http://tmsnrt.rs/2w39FKO

That reality pits Wal-Mart against President Donald Trump’s “Made in America” push. It also risks alienating some of Wal-Mart’s existing U.S. vendors since it runs counter to the American-made pledge the retailer made in 2013 in a bid to win customers, and satisfy unions and other critics who said its drive for low cost goods was undermining American jobs.

According to two sources with knowledge of the matter, Wal-Mart Stores Inc in February began inviting sellers from China, the United Kingdom and Canada to list on the marketplace section of Walmart.com, where it earns a share of revenue from goods sold and delivered to customers by third-party vendors.

Previously, it only allowed U.S. based sellers on the marketplace site, sources said.

Calling the unreported move a “measured approach,” Wal-Mart Vice-President of Partner Services Michael Trembley confirmed the invite-only program. He said foreign sellers currently make up less than five percent of its seller base.

Trembley said Wal-Mart’s move is focused on meeting customer demand for different types of products and increasing online assortment. Wal-Mart’s marketplace inventory has quintupled this year to 50 million items. That still pales in comparison to Amazon’s nearly 300 million products online, analysts said.

Shrinking that gap is key to Wal-Mart’s strategy to beat Amazon. Launched in 2009, the marketplace platform contributes more than 10 percent to Wal-Mart’s e-commerce revenue, but barely registers in total sales of nearly $486 billion, according to data from e-commerce analytics firm Marketplace Pulse. The data could not be independently verified by Reuters.

Amazon’s third-party marketplace, which also uses global vendors from countries like China, contributes to nearly half of Amazon’s retail sales, analysts said.

The move brings risks beyond the impact to Wal-Mart’s sales. Trump kicked off a “Made in America” week earlier this month where he promised he would take more legal and regulatory steps during the next six months to protect American manufacturers, lashing out against trade deals he said have hurt U.S. companies.

Trump’s comments come as the White House is seeking to renegotiate the 23-year-old North American Free Trade Agreement (NAFTA) in an effort to shrink the trade deficit with Canada and Mexico.

“No longer will we allow other countries to break the rules, steal our jobs and drain our wealth,” Trump said in a weekly address tweeted by the White House on July 21. “Instead we will follow two simple but very crucial rules: We will buy American and we will hire American.”

In a statement on Wednesday, Wal-Mart proposed policy actions to boost U.S. manufacturing which could help capture $300 billion worth of products that are imported. The retailer urged policymakers for simpler regulations on things like Made in USA labeling and modernize trade agreements.

Cindi Marsiglio, vice president for U.S. sourcing and manufacturing at Wal-Mart, told Reuters it is on target with its pledge to buy $250 billion worth of American-made products by 2023, and remains committed to boosting U.S. manufacturing.

“AGAINST THE SPIRIT OF THEIR ‘MADE IN AMERICA'”

Some of Wal-Mart’s existing U.S. vendors – whom Wal-Mart has recruited to supply goods manufactured domestically as part of its highly publicized Made-in-America sourcing plan – are on edge about competition with foreign goods.

“It goes against the spirit of their ‘Made in America’ push,” said one seller of American-made socks to Wal-Mart.com, who spoke on condition of anonymity for fear of hurting business relations with the retailer.

Six out of seven U.S. manufacturers Reuters spoke with who are selling to Walmart.com said they were disappointed with the retailer’s move. Marsiglio said the retailer had not heard any complaints about its move to allow global vendors on its marketplace.

“It’s bad timing to start such a program given President Trump’s push in this direction and the resources they (Wal-Mart) spend on promoting a patriotic image,” said another vendor, who sells pet products.

Darius Mir, chief executive of MIA (Made in America) Seating Corp, a Tennessee based seller of office furniture to Wal-Mart.com, said he supports free trade and is open to competition on the platform. But he thinks it would help U.S.-based vendors if Wal-Mart could label “Made in USA” items listed on its website.

“Walmart must distinguish between a ‘Made In USA’ product from all others by grouping the American made product separately, and highlighting the Made In USA label,” he said.

HOLLOWED-OUT MANUFACTURING

Wal-Mart’s third-party marketplace is part of an overall online initiative that is starting to show growth, with e-commerce sales growing 63 percent during the first quarter.

The progress has been led by e-commerce chief Marc Lore, who took over last year after Wal-Mart paid $3.3 billion for Jet.com, an online retail platform he founded.

Wal-Mart’s Trembley said the retailer’s approach to growing its marketplace, which analysts said has been slow, has been designed to avoid problems like counterfeit products, which is a challenge for rivals Amazon and Alibaba.

He said Wal-Mart vets sellers to the third party marketplace and has a high bar for selection.

The retailer has also put in place requirements for global vendors that could create U.S. jobs. For example, foreign sellers must be able to fulfill orders from a U.S.-based warehouse, they must use a U.S.-based return center and have customer support operating during U.S. business hours, Trembley said.

But finding U.S.-based suppliers remains a challenge. Beginning in the 1980s, Wal-Mart led a push to look overseas for inexpensive inventory, and the Made-in-America push—with its implied effort to rebuild a hollowed-out manufacturing base—has created more publicity than sales, retail consultants and analysts said.

Wal-Mart’s Marsiglio in an interview in April told Reuters that finding U.S.-based suppliers “remains one of the top challenges across our supplier base.”

This week she said one of the ways Wal-Mart is addressing that challenge is by working with existing suppliers and leveraging their manufacturing capacity to produce multiple items. For example, the retailer is working with a playing cards supplier who is now manufacturing plastic cutlery.

Wal-Mart had 10,249 sellers on its marketplace at the end of 2017’s first quarter, a substantial jump from 400 in the same period a year ago, according to data from Marketplace Pulse. This compares to millions of sellers on Amazon’s marketplace.

But few American consumers are willing to pay higher prices for American-made items. A Reuters Ipsos poll released on Thursday found 70 percent of Americans think it is important to buy U.S.-made products but 37 percent said they wouldn’t pay more for U.S.-made goods.

“This all boils down to one thing,” said Juozas Kaziukenas, founder and chief executive of Marketplace Pulse, the e-commerce analytics firm. “Wal-Mart’s marketplace has not been a success story, but with their renewed focus on e-commerce, they are trying to do everything they can to change that,” he said.

(Editing by David Greising and Edward Tobin)

Wal-Mart shutting 269 stores, including 154 in U.S.

(Reuters) – Wal-Mart Stores Inc said on Friday that it would pull the plug on its smallest store format, Walmart Express, and close 269 locations as it contends with higher costs in its home market of the United States and disappointing results overseas.

The move includes Wal-Mart’s largest-ever single culling in the United States, where the company is closing 154 stores. The other 115 stores are in Latin America, including 60 in Brazil.

The world’s largest retailer said it hoped to transfer many of the 10,000 U.S. and 6,000 Latin American workers in the closed stores to other locations.

Wal-Mart’s earnings have been under pressure due to last year’s decision to raise entry-level wages as well as higher investments aimed at closing the gap online with Amazon.com Inc. At the same time, Wal-Mart is struggling overseas, where a strong U.S. dollar reduces the value of local sales.

The closings come three months after Chief Executive Officer Doug McMillon disclosed plans to review global operations and shut underperforming stores. Friday’s announcement marks the first step in that restructuring effort.

Wal-Mart said the closures represented less than 1 percent of its global revenue. The biggest cuts are in the United States, including all 102 Walmart Express stores.

At 12,000 to 15,000 square feet, Express stores are less than one-tenth the size of a typical Walmart Supercenter. The format had been in pilot since 2011 but did not deliver the desired results.

Moody’s retail analyst Charlie O’Shea described the closures as a long-overdue “pruning.”

“I’ve always wondered why it’s taken so long to cull the U.S. store base because they really haven’t done much of it over the past several years,” O’Shea said.

Wal-Mart said the move would reduce earnings by 20 cents to 22 cents a diluted share, with nearly all of that to be booked in the fourth quarter ending this month. In November, it forecast a full-year profit of $4.50 to $4.65.

The company’s shares fell 2.6 percent to $61.39.

The other 52 U.S. stores to be closed are a mixture of Supercenters, Wal-Mart’s largest format; discount stores; Neighborhood Market groceries; and outlets in the company’s Sam’s Club bulk-selling wholesale chain.

The closings highlight the challenges Wal-Mart faces in finding growth opportunities in both its home market, which it has blanketed with some 4,500 stores, and overseas, where it has grown to more than 6,000 locations but has struggled to generate consistent returns.

In an internal memo to staff, McMillon said a regular review of the company’s assets was vital for growth. “Doing this ensures we focus and align our resources in ways that build a strong company positioned to win in the future,” said the memo, which was seen by Reuters.

The Arkansas-based retailer said it would still open 142 to 165 stores in the United States in the year ending in January 2017. For the first time, it also disclosed plans to open 200 to 240 stores overseas in the coming year.

The company said about 95 percent of the closed U.S. stores were within 10 miles of another that it owns, making it possible to move some workers to other locations. It said it would provide 60 days of pay and severance for eligible workers not placed.

The cuts drew criticism from a group backed by the United Food & Commercial Workers International Union, which for years has been behind a campaign pushing for better wages and benefits for Wal-Mart employees.

“Sadly, these latest store closings could very well be just the beginning,” Jess Levin, communications director at Making Change at Walmart, said in an emailed statement. “This sends a chilling message to the company’s hard-working employees that they could be next.”

(Reporting by Nathan Layne in Chicago; Editing by Lisa Von Ahn)

Major Companies to Cut Significant Amount of Jobs

Major companies, mostly located in the United States, are expecting to cut thousands of jobs within the next few years. These companies include: Whole Foods, Caterpillar, Chesapeake Energy, Hewlett-Packard Co., and Toshiba, along with supermarket giant, Wal-Mart Stores.

Reasons for the cuts have been attributed to a variety of reasons. Whole Foods reported to USA Today that they would be cutting 1,500 jobs within the next two months in order to lower prices for customers. The organic grocery store also announced that they would be trying to find other jobs within the company for those who were laid off.

Caterpillar, the heavy equipment manufacturer, said they would be cutting 10,000 jobs within the next three years. The job cuts come from a lack of projects for the company due to weakness in the energy and mining businesses worldwide, which affects the company greatly because their equipment is usually used for resource extraction and construction.

Another company that has been affected by the energy industry is Chesapeake Energy. Due to the high prices of oil and natural gas, the energy company is having to cut 750 workers, which is 15% of its workforce. Most of the job cuts will be in Oklahoma City, OK, where the company is based.

The technology business has also been affected by the recent world markets. Hewlett-Packard Company (HP) announced earlier this month that they would be cutting 33,300 jobs over the next three years due to falling demand. Another tech giant, Toshiba, also announced today that they would be cutting jobs as well due to a recent account scandal within the company. So far, Toshiba has not announced how many jobs would be cut, but that there would be restructuring within their company.

Even one of the biggest companies in the United States announced today that they would be cutting jobs. Wal-Mart Stores told Reuters that hundreds of people would be laid off at their headquarters in Arkansas. They expect fewer than 500 employees to lose their jobs. The job cuts were announced while the company struggles to shore up its profit margins, which have been weighted down by a $1 billion investment earlier this year to increase the wages of employees. So far this year, the stock for the world’s biggest retailer is down 26%.

CNN Money reported that the U.S. has cut more than 86,000 jobs due to falling oil prices.