Walmart shakes things up, further integrating online and physical store teams
In a move to better integrate its physical stores with its online enterprise, Walmart is combining both its supply chain and finance teams that work with its e-commerce site and stores.
“Our customers want one, seamless Walmart experience,” wrote CEO Doug McMillon in an employee memo obtained by numerous news outlets. “Earning more of our customers’ business in food and consumables is foundational to our strategy, and, at the same time, we will expand our ability to serve them with general merchandise in stores and through our broad e-commerce assortment as we continue to invest and build our e-commerce business.”
Greg Smith, current EVP of the U.S. supply chain, will head the new combined supply chain team. Nate Faust, currently leading e-commerce fulfillment, will transition to a new role.
Walmart U.S. CFO Michael Dastugue will oversee the combined finance team. Jeff Shotts, current e-commerce CFO, will lead Walmart’s U.S. marketplace business. Steve Schmitt, currently Sam’s Club CFO, will become the new U.S. e-commerce CFO, reporting to Mr. Dastugue.
Mr. McMillon said there are “a few areas where we are choosing to maintain some structural separation to enable focus and speed,” including merchandising. “Our eCommerce sales growth, improving customer metrics and progress on contribution profit are encouraging, and we want to keep that going,” he said.
One change in merchandising is that Ashley Buchanan, currently EVP and chief merchandising officer at Sam’s Club, will become chief merchandising officer for U.S. e-commerce, reporting to Mr. Lore. Andy Dunn, Bonobos co-founder currently heading digitally native brands Walmart, will report to Ms. Buchanan instead of Mr. Lore.
The memo also highlighted several appointees supporting to Janey Whiteside, who in early July became Walmart’s first chief customer officer after a two-decade career at American Express.
The management changes follow the announcement in mid-June that the team at Jet.com was being folded into its corporate web organization. Reports then arrived in early July that many of Walmart’s senior officials are frustrated by the steep losses being incurred by online operations and the retailer’s struggles trying to catch up to Amazon.com.
- Walmart announces executive shuffle to further integrate stores and digital – CNBC
- One, seamless experience’: Walmart is making big moves to integrate stores and digital – USA Today
- Walmart reorganizes leadership team to following Jet.com integration – MarketWatch
- Walmart Revamps Finance Teams as It Integrates Jet.com – The Wall Street Journal
- Walmart Deepens Store-Digital Integration as Web Unit Struggles – Bloomberg
- Walmart Announces Exec Changes To Support Omnichannel Retail – PYMNTS
- Is Walmart at an online crossroads? – RetailWire
- What is Jet.com’s future after its reorg within Walmart? – RetailWire
DISCUSSION QUESTIONS: Does it make sense that Walmart is keeping merchandising separate while combining its supply chain and finance functions for websites and stores? Is full integration of online and physical store functions the best solution for most large retail chains?