Duncan Mac Naughton, chief merchandising officer for Wal-Mart U.S., left the company Tuesday, becoming the second member of the retailer's executive management team to exit since Wal-Mart President and Chief Executive Officer Doug McMillon took over in February.
Mac Naughton was responsible for developing strategies for purchasing and marketing products sold on Wal-Mart's shelves. He helped put plans in place for the Christmas shopping season, which begins Thanksgiving Day. Mac Naughton had held the position since 2011.
The first to depart was Bill Simon, who left in August after four years as president and CEO of Wal-Mart U.S., the retailer's largest operating segment. He and McMillon were considered top candidates to succeed Mike Duke as CEO of the entire company, but McMillon got the post. Simon remains a consultant to the retailer through the end of January.
Wal-Mart has fought to grow stagnant same-store sales and foot traffic in stores for the past two years. The company saw a slight gain in its most recent quarter but lowered its estimates for the current quarter, which includes the Christmas shopping season.
Simon's replacement, Greg Foran, said in a memo to Wal-Mart associates Tuesday that Mac Naughton decided to leave the company to pursue new opportunities.
"Duncan's departure has allowed me to re-look at our merchandising structure and the incredible talent within the team," Foran said. No replacement for Mac Naughton has been chosen, he added.
"I would like to use this opportunity to get closer to the Merchandising organization," Foran said. Effective immediately, those under Mac Naughton's charge will report to leaders who will report directly to Foran, although a few will have different or added responsibilities.
Sources said that both Mac Naughton's home and lake house have been for sale for months, and that his wife, Cindy, had already moved ahead of him. Mac Naughton was said to have been a candidate for the job as head of Wal-Mart U.S. The job went to Foran, who was promoted from head of Wal-Mart's Asia operation.
Brian Yarbrough, a senior analyst for Edward Jones in St. Louis, said changes at Wal-Mart are likely to happen, given the company's years of substandard performance and the new chief at Wal-Mart U.S.
"It's probably a differing of opinions, if I had to guess," he said.
The fact that Mac Naughton is not being immediately replaced says Foran wants more oversight into the merchandising side of things, Yarbrough said.
Mac Naughton joined the company in 2009 as chief merchandising officer for Wal-Mart Canada and was named executive vice president of merchandising for Wal-Mart U.S. in October 2010. Before his employment with Wal-Mart, he held leadership roles at Kraft Foods Inc., H.E. Butt Grocery Company and Albertson's Inc. He also served as executive vice president of merchandising and marketing at SUPERVALU Inc.
Foran was complimentary of Mac Naughton's work at Wal-Mart.
"Through Duncan's leadership, we have focused on developing our merchants while also driving stronger collaboration between marketing and merchandising," he said. "This has made us more relevant to and focused on our customers.
"He's always been, and I'm sure always will be, an advocate for our customers and our stores. We'll miss his creativity and energy."
In the memo, Foran announced other personnel decisions.
Steve Bratspies will move from executive vice president of general merchandise to executive vice president over food. Andy Barron will retain his role as executive vice president of "softlines," which includes apparel accessories and footwear, and will assume responsibility for general merchandise.
Michelle Gloeckler will remain executive vice president of consumables and U.S. manufacturing, though she'll have additional help from senior vice president Labeed Diab and his health and wellness team. John Aden will keep his current position as executive vice president of sales innovation, and Scott Huff will retain his current role as executive vice president of merchandising operations.
Jack Sinclair will help shift the food business to his unnamed successor over the coming weeks, then take another position within the company. Wal-Mart is the nation's largest grocer, and food makes up more than half the company's business.
Business on 11/26/2014