Wal-Mart Stores Inc. on Wednesday named new executives to run its marketing and merchandising operations as the company tries to bolster U.S. sales growth.
Marketing head John Fleming was named chief of merchandising, which is being divided into five parts, the world’s largest retailer said. He will replace Doug Degn, who is retiring. Stephen Quinn will take over Wal-Mart’s marketing unit, replacing Fleming.
Wal-Mart has cited disappointing demand for clothing and disruption from renovations as factors in slowing U.S. sales as the retailer upgraded stores and merchandise.
Lawrence Jackson, chief of global procurement, and Jay Fitzsimmons, treasurer, also announced plans this month to leave.
Fleming’s new position is similar to what he held at Target Corp., where he “did a fabulous job,” said Patricia Edwards, a money manager at Seattle-based Wentworth, Hauser & Violich.
“Essentially what Wal-Mart is saying is that this is the guy they are going to bank on for improving everything from the goods in the store to the store experience.”
Fleming’s job shift comes as the company has returned to its message of promoting low prices following disappointing sales growth last fall.
Under U.S. stores chief Eduardo Castro-Wright, Fleming led an effort to tailor products and marketing to specific types of customers, such as Latinos and the “suburban affluent” shopper.
Fleming also was responsible for this month’s hiring of Interpublic Group of Co.’s Martin Agency to handle its $580 million U.S. account.
Wal-Mart dismissed DraftFCB of Chicago, also owned by Interpublic, for unspecified reasons on Dec. 7. Three days earlier, advertising chief Julie Roehm was fired from the company, according to legal documents.
Roehm has sued Wal-Mart for breach of contract and fraud.
The complaint filed last month also said Wal-Mart “made false and malicious statements to the media.”
Fleming joined Wal-Mart in 2000, and became head of its Internet division the following year. Before that, he spent 19 years at Dayton Hudson Corp., now Target, in a variety of positions, including senior vice president of merchandising for fashion. He became chief marketing officer in April 2005.
