updated - July 7, 2020 Tuesday EDT
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.
TOP 10 FRANCHISES OF 2020