Wal-Mart to split merchandising responsibilities among 4 executives _ for now

Wal-Mart to divide merchandising jobs

NEW YORK — Wal-Mart Stores Inc. is splitting the position of chief merchandising officer among four executives.

The decision, which may not be permanent, raises some uncertainty about how the world’s largest retailer will shape its merchandising strategy following the departure of John Fleming. Fleming left in June amid a series of executive departures.

The moves in merchandising executives, who are important in deciding what a retailer will stock, come as Wal-Mart has been stymied by merchandising problems, and its strategy remains in flux amid management reshuffling and departures.

In a memo sent to employees Sept. 3 and made available to The Associated Press on Friday, Bill Simon, president and CEO of Wal-Mart’s U.S. business, wrote: “This structure aligns similar categories and allows us to be even more competitive in each customer channel.”

According to the memo, John Wrestling, executive vice president, will head the company’s general merchandise and replenishment teams, and Jack Sinclair, executive vice president, will continue to run food. Andy Barron will return to merchandising and lead apparel and home furnishings, while Duncan MacNaughton will join the U.S. namesake stores from Wal-Mart Canada as the executive vice president of consumables, health and wellness and Walmart.com.

All four executives will report to Simon, who took over his new role in June.

Brian Sozzi, analyst with Wall Street Strategies, said he believes the decision to hold off in replacing Fleming with one executive is actually a positive.

Greg Rossiter, a Wal-Mart spokesman, said that the decision doesn’t mean the retailer won’t eventually hire a replacement for Fleming. “Bill Simon isn’t filling the chief merchandising role for now,” he said.

“We think it reflects a real internal debate as to what direction they should be going with their merchandise, such as in apparel and home,” he said. “The decision to refrain from hiring a (chief merchandising officer) suggests that they are considering change in strategy, and want to pick the right person to lead that change.”

Fleming left the company Aug. 1 after 10 years. At the time, Wal-Mart said he would be replaced temporarily by Sinclair and Wrestling, but that a search was under way to fill Fleming’s role.

The announcement of Fleming’s departure, made in July, came three days after the company said Simon, who had been chief operating officer, would take over from Eduardo Castro-Wright as president and CEO of its U.S. operations. Castro-Wright now leads the retailer’s e-commerce unit Global.com and its global sourcing division and remains vice chairman of the company.

Simon said during a pre-recorded call last month that the company was accelerating its moves to restore items it had cut earlier in the year at its namesake stores and is returning to everyday low pricing after steep rollbacks failed to excite frugal shoppers. He also reiterated a return to basic fashions like underwear and socks.

“We’ve set out a clear direction for change in our business, and believe this will put us on a track to see improvement by the fourth quarter,” said Simon.

Wal-Mart is based in Bentonville, Ark.

(This version CORRECTS spelling of Wal-Mart spokesman’s first name to Greg)