Walmart Makes Changes To Its Merchandise Team To Boost Revenue
By Christine Kern, contributing writer
Management shifts are part of major overhaul of its U.S. operations.
As part of a major overhaul of its U.S. operations amid a profit drop, Wal-Mart Stores Inc. is shuffling its merchandising team, according to an internal memo obtained by the Wall Street Journal.
In a staff memo, Wal-Mart U.S. CEO Greg Foran explained that a small number of executives would be given more accountability. “These changes include both exporting talent internationally and expanding areas of accountability for some of our most experienced Walmart…”
As part of the announced changes, Marybeth Hays, SVP of home for Wal-Mart U.S., has been named chief merchandising and marketing officer for Walmart China, replacing John Furner, who returns to the U.S. in a yet-undetermined role. Hays’s U.S. job will be shared by Wal-Mart merchants Scott McCall and Terry Price. Rick Hays, VP of hardware and paint, will become VP of general merchandise for Sam’s Club China.
Current SVP of replenishment Laura Wilkin will become SVP of flow strategy and systems innovation, while SVP of strategy, pricing, planning and modular development Scott Pleiman will absorb replenishment as part of his duties.
Walmart has actively been addressing the need for change in order to compete with the growing ecommerce competition it faces. Last fall, the company brought in Instagram CEO Kevin Systrom to help steer its technology and ecommerce decisions in order to stay current.
Walmart also eliminated a number of in-store management roles in April to improve shopper service and boost efficiency as the company fights to reposition itself with today’s more tech-savvy customers. According to Greg Foran, CEO of WalMart U.S. “How stores serve customers in a simple, repeatable and sustainable way” was one of the chief priorities he outlined recently to Wal-Mart U.S. executives. “We’ve recently undertaken some important activities to simplify our organization and empower our stores, our associates in our stores to make decisions.”
CEO Doug McMillion has been focused on improving customer experiences while also improving the bottom line at Walmart. This is just one step in the overall improvement process.
This move to shake up store management comes as part of an overall retooling of WalMart’s approach. In February, WalMart announced that it would raise the baseline wage for 500,000 current store employees .
In the February company statement, Doug McMillon, Wal-Mart Stores, Inc. president and CEO , explained: "Today, we announced comprehensive changes to our hiring, training, compensation and scheduling programs, as well as to our store management structure. These changes will give our U.S. associates the opportunity to earn higher pay and advance in their careers. We're pursuing a comprehensive approach that is sustainable over the long term."