AP File PHOTO
Wal-Mart Stores Inc. President and CEO Mike Duke answers a question during a panel discussion in Orlando, Fla., in August. Wal-Mart announced Monday that Duke is stepping down from his position.
BENTONVILLE, Ark. ó Wal-Mart Stores CEO and President Mike Duke plans to step down Feb. 1. The company said Doug McMillon, head of international operations, will succeed him.
Duke, 63, who had been with Wal-Mart since 1995, had been at the helm since February 2009. Duke will remain on the companyís board as chairman of its executive committee.
McMillon, 47, marks the fifth CEO since Wal-Martís founder Sam Walton, and all of them have been home-grown with years of experience before taking the helm.
McMillon was also elected to the companyís board of directors, effective immediately.
McMillon, who succeeded Duke as head of the international business four years ago, is a 23-year company veteran. He started as a summer associate in a Wal-Mart distribution center in 1984 and then in 1990, he rejoined Wal-Mart at a Tulsa, Okla., store. He then moved up the executive ladder, working in a variety of merchandising jobs at the Wal-Mart U.S. division. Before he took over international operations, McMillon served as president and CEO of Samís Club from 2006 to 2009.
ďThis leadership change comes at a time of strength and growth at Wal-Mart,Ē said Rob Walton, chairman of Wal-Martís board of directors. ďThe company has the right strategy to serve the changing customer around the world, and Doug has been actively involved in this process. The company has a strong management team to execute that strategy.Ē
The announcement came just days before the kickoff of the holiday shopping season. It also comes as Wal-Mart is trying to boost sales in the U.S. and abroad amid a challenging global economy thatís weighing on its low-income shoppers.
Itís also confronting a host of issues that are hurting its reputation. Itís grappling with allegations of bribery in its Mexico operations that surfaced in April 2012 as well as criticism over its treatment of its hourly workers. Wal-Mart is also facing pressure to increase its oversight of factory conditions abroad following a building collapse in April in Bangladesh that killed more than 1,127 garment workers. The tragedy is the deadliest incident in the history of the garment industry.
Dave Tovar, a spokesman at Wal-Mart said Dukeís decision to leave Wal-Mart was ďa personal one,Ē and he said it had nothing to do with the bribery allegations.
ďHe decided it was time to retire,Ē Tovar told The Associated Press. He added that Duke approached Walton and the board voted Friday.
Duke, became CEO in February 2009. He assumed the top role when the retailerís strong performance made it the rare winner during the Great Recession, but that soon changed a few months after he took the helm.
As the economy slowly recovered, times got tough for Wal-Mart, resulting in a more than two-year slump in its U.S. namesake business. Customers who were hurting financially spent less and others fled to competitors offering better convenience. The company also blamed mistakes in pricing and merchandising. And its move to declutter its stores backfired when shoppers couldnít find their favorite products.
The decision to clean up the stores was not made on Dukeís watch, but Wal-Martís detour away from its everyday low price strategy to temporarily slashing prices on key items was. During Dukeís tenure, he named a new U.S. executive team, which reversed the slump in the third quarter of 2011 by restocking thousands of items and pushing low prices across the store.
But those gains have been reversed since early this year. The U.S. Wal-Mart business has posted three straight quarterly declines in a key sales metric, breaking the streak of consecutive quarterly revenue gains. The company has blamed a combination of factors but particularly financial pressures shoppers are facing.
The management transition also comes when Wal-Mart is trying to fight off online rivals like Amazon.com, eBay Inc. and other online retailers, which are luring shoppers to the Web with their vast offerings of products and low prices.
The discounter is also following its own shoppers, who are buying and researching on their smartphones and tablets. Under Dukeís stewardship, the company has launched a number of initiatives that have merged its online business with the power of its more than 4,000 stores. That includes launching same-day delivery in five markets and new shopping apps.
Wal-Martís shares rose 52 cents to $80.33 in afternoon trading.MORE IN World/National BusinessNEW YORK ó Yes, your mutual fund may own some Greek stocks. No, most likely not a lot. Full StoryNEW YORK ó Yes, your mutual fund may own some Greek stocks. No, most likely not a lot. Full Story
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