FRANCHISE HERALD
Thursday December 5, 2019

updated - December 5, 2019 Thursday EST

Wal-Mart CEO: Retailer Announces Leader Change Amid Growth Struggles; Potential Bribery Case

Nov 25, 2013 10:49 AM EST | By Justin Stock
Tags
Wal-mart, Doug McMillon, Mike Duke
Close
Wal-Mart Logo
Three black friday shopping incidents occurred at a Rialto, Calif. Wal-Mart Thursday night.(Photo : Creative Commons )

In an effort to strengthen growth domestically, and internationally, Wal-Mart's current international business leader Doug McMillon takes over for current chief executive officer Mike duke Feb 1 Bloomberg reported Monday.

"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," Wal-Mart chairman Rob Walton said in a statement Forbes reported. "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 lives of people, wherever they might be."

McMillon begins his new position Feb. 1, while Duke remains the company's chairman of the board's executive committee. McMillon has already been placed on the board.

The news comes during the company's efforts to grow in China, and U.S. Securities and Exchange Commission investigation of a bribery case in Mexico involving the Foreign Corrupt Practices Act. This stems from the company paying Mexico officials to rapidly expand retail stores in the country. The company has also started to look into how it might have broken rules of the legislation.

"International had definitely run into its issues," David Strasser, an analyst at Janney Montgomery Scott LLC in New York said in a statement Bloomberg reported."

Wal-Mart saw its shares increase 0.5 percent Monday morning to $80.22. Shares have gone up 17 percent within the last year. This compares to a 69 percent rise beginning with Jan. 30, 2009, the final day before Duke started as chief executive officer until Friday.

"McMillon's tenure at all three division -- U.S., international and Sam's Club -- was a key to his hiring because in a sense it was training for the CEO job," David Schick, an analyst for Stifel Financial Corp. in Baltimore told clients in a memo Bloomberg reported.

Get the Most Popular Franchiseherald Stories in a Weekly Newsletter
© 2015 Franchise Herald. All rights reserved.

Connect With Franchise News

Email Newsletter

TOP 10 FRANCHISES OF 2019

  • RANK
    FRANCHISE NAME
    STARUP COSTS
  • 1nc
    Hampton Hotels
    $3.7M - 13.52M
  • 2nc
    Subway
    $85.2K - 260.35K
  • 3up
    Jiffy Lube Int'l. Inc.
    $196.5K - 304K
  • 4down
    7-Eleven Inc.
    $30.8K - 1.64M
  • 5up
    Supercuts
    $103.55K - 196.5K
  • 6up
    Anytime Fitness
    $56.3K - 353.9K
  • 7down
    Servpro
    $133.05K - 181.45K
  • 8down
    Denny's Inc.
    $1.18M - 2.4M
  • 9down
    McDonald's
    $1M - 2.16M
  • 10down
    Pizza Hut Inc.
    $295K - 2.15M
Real Time Analytics