AR-15-style rifles out at Wal-Mart

Wal-Mart Stores Inc. will no longer sell "modern sporting rifles" in its stores, citing limited customer demand as the reason for pulling the product from its shelves.

Traditional hunting firearms such as shotguns and deer rifles will be offered by the retailer in place of the semi-automatic weapons with high-capacity magazines. Wal-Mart made the decision in response to customer interest and not as a result of outside pressure, a company spokesman said.

"It was strictly a business decision, strictly based on what we were seeing and hearing from customers and what their shopping patterns were," spokesman Kory Lundberg said Wednesday. "As we're resetting the sporting goods modular for the fall, the [modern sporting rifles] weren't on there and this week we're removing them from stores, and that is what caught everybody's attention."

Lundberg said Wal-Mart made the decision to remove the weapons in the spring. Anti-gun activists and shareholders, including a historic Episcopal church in New York City, have lobbied the retailer to consider removing certain types of guns from its shelves.

Wal-Mart was selling the modern sporting rifles, such as AR-15s, in fewer than one-third of its 4,600 U.S. stores. The firearms are being pulled off the shelves as sporting goods departments set up displays for the fall. Lundberg said a complete phaseout is expected within the next week.

The National Rifle Association said it was "disappointed" in Wal-Mart for pulling the products from its shelves.

"While we're disappointed in Wal-Mart's decision, we appreciate the firearms retailers who continue to carry these firearms and enable law-abiding citizens to purchase the firearm of their choice," NRA spokesman Catherine Mortensen said via email.

An estimated 10 million modern sporting rifles have been sold in the U.S. since 1990, according to the National Shooting Sports Foundation. No numbers specific to Wal-Mart were available.

National Shooting Sports Foundation spokesman Mike Bazinet said the organization recognized the decision "was based on what management sees as best for their business."

Groups have called for retailers to stop selling AR-15 model guns after they've been used in mass shootings, including at an elementary school in Newtown, Conn. That shooting was part of the motivation for New York-based Trinity Wall Street Church to submit a shareholder proposal asking Wal-Mart board members for more oversight into what products the retailer offers.

A decision by the U.S. Court of Appeals for the 3rd Circuit in April allowed Wal-Mart to omit a shareholder proposal from its annual meeting related to board oversight of what products the retailer sells. Trinity originally submitted the proposal for the 2014 shareholders meeting and, while the request wasn't specific to firearm sales, publicity surrounding the case centered on rifles with magazines that hold 10 or more rounds.

The modern sporting rifle is the type of weapon that Wal-Mart is no longer selling, a move that drew applause from Trinity. Still, the church is currently appealing a decision by the appeals court and evaluating whether to drop its lawsuit.

"Trinity Church is very pleased to hear that Wal-Mart will no longer sell the kinds of weapons that have caused such devastation and loss in communities across our country," the Rev. William Lupfer, rector of Trinity Church, said in a statement. "We continue to believe that corporate boards have the responsibility to oversee the creation of policies that will guide decision making on marketing and other issues that could have momentous impact on the safety and well-being of society and to shareholder value. We will continue to engage constructively with companies and fellow investors to this end, and we will be discussing with Wal-Mart's counsel whether there is a basis on which we can agree with them to drop our suit."

Wal-Mart will continue to sell some types of firearms. It does not offer firearms in all of its U.S. stores and handguns are available only by special order in Alaska.

Analysts who cover the company expected the decision to have little impact with investors. Edward Jones retail analyst Brian Yarbrough said firearms are just a small part of Wal-Mart's business.

Wal-Mart shares ended Wednesday at $64.83, up $1.73 from the previous day's trading.

Business on 08/27/2015

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