Executive-position changes continued for Wal-Mart Stores Inc. on Wednesday as Judith McKenna was named chief operating officer for Wal-Mart U.S.
It's the third major executive change under Chief Executive Officer Doug McMillon, who took over as head of the world's largest retailer in February. McKenna replaces Gisel Ruiz, who now is serving as executive vice president of Wal-Mart's International People Division.
Last month, Wal-Mart announced that Duncan Mac Naughton was leaving as chief merchandising officer after five years with the company. Bill Simon left the company in August after serving four years as president and CEO of Wal-Mart U.S., the company's largest division.
Edward Jones senior analyst Brian Yarbrough said it is not unusual to see turnover in executive positions when a new leader is overseeing a company. McMillon's move into the CEO role and the recent struggles by Wal-Mart have created an environment where change seems inevitable, Yarbrough said.
"Anytime you have a new CEO come in, there is going to be change," he said. "Most of the time you see change because their necks are on the line and everything falls back to them. They want to make sure they're surrounded by their people. It comes down to a CEO trying to get what is believed to be the right people in the right position."
McKenna, who has been serving as chief development officer for Wal-Mart U.S., joined the company 20 years ago as part of its Asda leadership in the United Kingdom. She will report directly to Wal-Mart U.S. President and CEO Greg Foran. McKenna served as chief financial officer and chief operating officer for Asda before moving to Wal-Mart International as executive vice president of strategy and international development. Asda is a British supermarket chain owned by Wal-Mart.
"One of the great things about Walmart is the depth and breadth of talent at all levels of our organization," Foran said in a news release. "Around the globe, we have some of the best leaders in retail because of our focus on developing talent and our commitment to creating opportunities for diverse experiences. The announcements we're making today are examples of just that."
Duties for McKenna will include oversight of the company's 1.3 million employees in the United States. She'll also continue to work on Wal-Mart's development of new formats and oversight of its small-format stores. Expansion of digital commerce in the U.S. also is among her responsibilities.
Ruiz, who got her start as a management trainee 22 years ago, will report to international CEO David Cheesewright and serve as part of his leadership team. As part of the International People Division, Ruiz also will work on a human-resources strategy for the company's 1 million associates outside the U.S.
Business on 12/11/2014