(Adds analyst comments, background)
Jan 13 Wal-Mart Stores Inc on Friday
announced a management shuffle that integrates the running of
its physical outlets and online operations, and extends broader
authority to the former head of online retailer Jet.com, which
Wal-Mart bought for $3.3 billion last year.
It was the second time Wal-Mart has shuffled its e-commerce
decks after it acquired Jet.com in August and appointed Marc
Lore to run its e-commerce business. In November, Wal-Mart
announced a number of management changes and said Jet.com
co-founder Nate Faust would lead fulfillment operations for both
Jet.com and Wal-Mart.com.
Among the changes announced on Friday, Wal-Mart said Jeremy
King, who was the chief technology officer of global e-commerce
for Wal-Mart Stores, will oversee the technology teams for both
its brick and mortar retail stores and its e-commerce business.
Michael Bender, chief operating officer for e-commerce, will
leave the company.
Tony Rogers, the chief marketing officer of Wal-Mart in the
United States, will now also oversee online marketing efforts as
the company shifts its focus to building its websites and
Wal-Mart also appointed GE Power executive Clay
Johnson as the new chief information officer. Johnson will
replace Karenann Terrell, who will leave in February.
"These changes continue to show Lore is putting his stamp on
the business," said Brian Yarbrough, senior research analyst
with Edward Jones. "It remains to be seen how effective this
The departures are a sign that Wal-Mart's struggling online
business will get a drastic makeover under Lore, who started out
in e-commerce with Diapers.com, which he eventually sold to
Amazon.com Inc in 2010 for $550 million. Lore is likely
to stay with Wal-Mart for at least five years, according to
The changes announced on Friday are also part of a broader
push by Wal-Mart Chief Executive Doug McMillon to narrow the gap
with Amazon and to give it an even more dominant position in
U.S. e-commerce. The retailer has been investing in e-commerce
for the past 15 years, but it still lags far behind its
The management changes come at a time when Wal-Mart is
cutting thousands of back-office jobs in an effort to focus more
on e-commerce, cut costs and have more employees on the sales
Analysts expect such executive shuffles to continue as
Wal-Mart keeps integrating Jet.com into its business.
"Wal-Mart clearly isn't done reconfiguring its e-commerce
operation and still has work to do," said analyst Jan Dawson of
He said a lot of companies are combining oversight of their
store and online operations with the goal of having a single
retail organization, as Apple Inc did last year.
(Reporting by Nandita Bose in Chicago and Gayathree Ganesan in
Bengaluru; Additional reporting by Jeffrey Dastin in New York;
Editing by Jonathan Oatis)