Wal-Mart says merchandising chief leaving amid shakeup

Wal-Mart Stores Inc. announced the departure of U.S. merchandising chief Duncan Mac Naughton and a shakeup of its management structure as the retailer works to ignite sales growth in its home market.

Instead of naming a new chief merchant, Wal-Mart U.S. will now have a group of merchandising executives reporting directly to Greg Foran, the unit's chief executive officer, the Bentonville, Arkansas-based company said today in an e-mailed statement. Mac Naughton is leaving to pursue other opportunities, Wal-Mart said, without providing details.

Chief Executive Officer Doug McMillon, who took over the world's largest retailer earlier this year, has been adding more small-format stores and trying to improve customer service to boost domestic revenue. Wal-Mart earlier this month posted its first U.S. same-store sales gain after six quarters in which the shaky economic recovery restrained spending among its lower- income shoppers.

McMillon also has shuffled the retailer's management in his almost nine months at the helm. In June, he named 13 executives to the U.S. merchandising operations to oversee everything from consumables and sales innovation to baby products and adult beverages.

Foran became U.S. chief in August after running Wal-Mart's Asia operations, and Michael S. Moore was named to lead Wal-Mart U.S.'s small-format stores in July.

Holiday Strategy

The changes announced today come as Wal-Mart prepares for the rush of holiday sales that kicks off on Thanksgiving. For the first time, the retailer is stretching its deals over five days instead of concentrating them on the day after the holiday, typically known as Black Friday.

The holiday shopping season is pivotal for U.S. merchants, with sales in November and December expected to account for about 19 percent of annual revenue, according to the National Retail Federation. Industrywide spending this holiday season may rise 4.1 percent, more than last year's 3.1 percent gain, the trade group has forecast.

Wal-Mart fell 1.1 percent to $84.48 at 11:16 a.m. in New York. The shares rose 8.5 percent this year through yesterday, compared with a 12 percent gain for the Standard & Poor's 500 Index.

To contact the reporter on this story: Kevin Orland in Chicago at korlandbloomberg.net To contact the editors responsible for this story: Nick Turner at nturner7bloomberg.net Kevin Orland, James Callan