Walmart's choice for new CEO questioned by analysts.
The world's biggest retailer tapped McMillon, 47, currently heading its international operations, to be its new CEO when current chief Mike Duke steps down on Feb. 1.
CEO and chief equities strategist at Belus Capital Advisors, Brian Sozzi said that the choice was an indictment that the Walmart US business is no longer a growth engine, Huffington Post reports.
The empty shelves in stores have raised concerns about the company's logistics and Sozzi described a 'rotting' atmosphere typified by messiness and blank spaces where normally there would be merchandise, dragged down more by competition from online retailers like Amazon and aggressively expanding dollar-store chains.
However, international is seen as the growth area for Walmart with its sales rising around 35 percent, much higher than the 6.4 percent increase posted in the US over that period.
Meanwhile, a spokeswoman for Walmart, Brooke Buchanan, firmly denied that the decision to pick McMillon says anything about the retailer's US business.
The report said that McMillon presided over a period of international expansion for Walmart, leading to 135 billion dollars in sales last year, about 29 percent of the retailer's total sales but his tenure was marred by a bribery scandal at the company's subsidiary in Mexico.
CEO of consulting firm The Hayzlett Group, Jeffrey Hayzlett said that Walmart's decision to appoint McMillon is an 'in your face' move meant to show strength in Walmart's international business, the report added. ( ANI )
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|Publication:||Asian News International|
|Date:||Nov 26, 2013|
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