Wal-Mart makes organizational moves to raise efficiency(70235)

Wal-Mart makes organizational moves to raise efficiency

From: Reuters

Wal-Mart Stores, the world s biggest retailer, is consolidating some operations in the United States while dividing the country into three regions with separate presidents. The company is looking to more efficiently manage its more than 3,700 American stores.

The company said on Thursday that it was consolidating its logistics, real estate and store operations, now all to be overseen by Bill Simon, its United States chief operating officer.

Andy Barron will oversee store merchandising execution, which will develop merchandise strategies for its three new business units: Walmart West, Walmart South and Walmart North.

The retailer is also creating a new division called Global.com to oversee its global e-commerce business and promoted Wan Ling Martello to be its chief operating officer. She was previously chief financial officer of Walmart International.

Raul Vazquez, who was the chief of Walmart.com in the United States, is taking on a new role as president of Walmart West.

Eduardo Castro Wright, who oversees Wal-Mart s United States operations, said in a memo that the structure would facilitate our growth as we seek to enter new markets and develop new segments across the U.S.

The changes come nearly a year after Mike Duke became Wal-Mart s chief executive, taking the helm on Feb. 1, 2009, from Lee Scott, who retired.

At its analyst meeting in October, Mr. Duke said Wal-Mart was determined to become more efficient and cut costs, allowing it to offer lower prices to increase sales. On Sunday, Wal-Mart said it was cutting about 11,200 jobs at its Sam s Club warehouses.

The retailer has also been looking for ways to stock its stores with merchandise that is more tailored to local tastes, while also analyzing ways to open stores in new markets after saturating many regions with large supercenters.

While Wal-Mart has gained market share amid the economic downturn, analysts are watching to see whether customers will continue to shop in its stores if the economy improves.

Last Thursday, Wal-Mart also announced a $2 billion sourcing deal with Li & Fung Ltd., which it said should result in savings.

Wal-Mart makes organizational moves to raise efficiency

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