The past 30 days have been extremely frenetic for Wal-Mart. The world’s largest retailer announced that company veteran Doug McMillon, 47, currently CEO of Wal-Mart International, will succeed Mike Duke, 63, as president and chief executive officer, effective February 1, 2014. McMillon was also elected to the company’s board of directors, effective immediately.
Additionally, Wal-Mart cut the ribbon on its first two Washington, DC stores on December 4 and, based on the opening few days, business is booming.
As for the leadership change at the large retailer, which operates more than 11,000 stores worldwide, employs approximately two million associates and rang up sales of $466 billion last year, speculation about Duke’s retirement has been rampant for most of 2013. Many industry analysts thought McMillon, who began with the Bentonville, AR retailer as a summer associate in a Wal-Mart distribution center when he was 18, and Bill Simon, current president and CEO of Wal-Mart’s U.S business, who joined Wal-Mart in 2006, would be the chief contenders for the top job.
“This leadership change comes at a time of strength and growth at Wal-Mart,” said Rob Walton, chairman of Wal-Mart’s board of directors. “The company has the right strategy to serve the changing customer around the world, and Doug has been actively involved in this process. The company has a strong management team to execute that strategy.”
Walton continued, “Doug is uniquely positioned to lead our growing global company and to serve the changing customer, while remaining true to our culture and values. He has broad experience – with successful senior leadership roles in all of Wal-Mart’s business segments – and a deep understanding of the economic, social and technological trends shaping our world. A merchant at heart, Doug has both a long history with our company and a keen sense of where our customers globally are heading next. He has also shown strong leadership on environmental sustainability and a commitment to using Wal-Mart’s size and scale to make a difference in the lives of people, wherever they might be.”
“The opportunity to lead Wal-Mart is a great privilege,” McMillon said. “Our company has a rich history of delivering value to customers across the globe and, as their needs grow and change, we will be there to serve them. Our management team is talented and experienced, and our strategy gives me confidence that our future is bright. By keeping our promise to customers, we will drive shareholder value, create opportunity for our associates and grow our business.”
“Mike put in place the building blocks for the next generation Wal-Mart and today the company is stronger, more global and more unified across all our stores, mobile and online,” said Walton. “He also reinvigorated the productivity loop and delivered strong financial performance. During his tenure the company made critical investments in talent and technology to expand Wal-Mart to even more customers globally and stepped up its progress on social and environmental issues. Mike also has a strong commitment to diversity, and has been especially engaged in advancing women throughout organization. He set a tone at the top to never be satisfied, to always accelerate and do better, while remaining true to the culture that has been core to the company’s success.”
“This is a great company and it has been an honor to help advance Sam Walton’s vision of giving people around the world a better life,” said Duke. “Our associates make it all possible and I’ve learned so much from them. No matter where I traveled, our associates continued to inspire me with their commitment to living our values, serving our customers and taking care of each other.”
Duke will continue serving as chairman of the executive committee of the board and, in the tradition of his predecessors, stay on as an advisor to McMillon for one year. The company plans to make an announcement on McMillon’s successor as CEO of Wal-Mart International by the end of the fiscal year.
Locally, the first two of at least five new Wal-Marts in the nation’s capital debuted to large crowds and local picketing from United Food and Commercial Workers Local 400. The stores are located at the intersection of Georgia and Missouri Avenues NW (5929 Georgia Ave, NW) and at the intersection of 1st and H Streets NW (99 H Street NW).
Alvin Robinson is the store manager for the 103,000 square foot Wal-Mart on Georgia Avenue NW. Robertson was hired into Wal-Mart’s management training program two years ago and served as store manager of the Wal-MartSuperCenter in Frederick, MD prior to coming to DC.
Eric Quist will serve as the store manager for the 74,000 square foot Wal-Mart on H Street NW. He has worked for Wal-Mart for the past 19 years.
Despite a threat by the retailer to withdraw from Washington if a $12.50 cent “living wage” bill was enacted (the bill was passed by the City Council but was ultimately vetoed in September by Mayor Vincent Gray who had been instrumental in convincing Wal-Mart to build stores in DC), the big retailer now has begun a quest that in time could challenge market leader Safeway’s perch as the District’s largest retailer.
Next up for Wal-Mart is a 120,000 square foot store located at the junction of Riggs Road and South Dakota Avenue NE (Totten Square) which is slated to open in 2015. Also scheduled for later in 2015 is a 118,000 square foot Wal-Mart at East Capital Street and 58th Street NE (Capitol Gateway Marketplace). Co-developers A&R Companies and the DC Housing Authority have requested a zoning change which could further delay the store’s opening. Also in “zoning change” mode is the proposed Wal-Mart to be located on Good Hope Road and Alabama Avenue SE (SkylandTownCenter). That store, located near where Mayor Gray was raised, won’t open until at least 2016. The status of the proposed 120,000 square foot Wal-Mart located at the intersection of New York Avenue and Bladensburg Road NE is in doubt after developer Rick Walker pulled out of the deal. Published reports have indicated that Wal-Mart is still interested in the New York Avenue site and the owners of that 11 acre parcel, brothers Andrew, Dave and Jerry Schaeffer, are also reportedly seeking a new developer to get the project resurrected.
