Jaewon Kang
(Bloomberg) — Walmart Inc. appointed new heads for its three main divisions, completing a leadership refresh at the world’s largest retailer.
David Guggina, chief e-commerce officer of Walmart US, is being promoted to chief executive officer of the division — the company’s biggest and most important business — according to a statement. He’s assuming the spot that’s being vacated by John Furner, who is replacing the outgoing Doug McMillon as CEO of the entire company.
Guggina, 40, joined Walmart from Amazon.com Inc. about eight years ago and has quickly moved up the company’s ranks. He has led the US online business since last January after running supply-chain operations. By broadening delivery areas and cutting shipping costs, the digital unit has fueled growth in the US and is reaching profitability. His appointment underscores Walmart’s ambition to flex and grow its e-commerce muscles.
Now, Guggina will oversee the region that generates hundreds of billions of dollars in sales and work to keep up the company’s recent momentum, with Walmart’s share appreciation last year outpacing the S&P 500 Index. He’ll also face a backdrop of increasingly discerning shoppers, uneven consumer sentiment and a weakening job market.
Retail competition is fierce in the US, with peers Costco Wholesale Corp., Target Corp. and Aldi Inc. investing to keep prices low and improve their shopping and online experiences. Amazon has been increasingly encroaching on Walmart’s turf, even as Walmart bolsters its e-commerce operations, signaling its intent to further expand its physical footprint and grocery offerings.
“A key part of maintaining our momentum is making sure we have the right structure to win,” Furner wrote in a memo to staff, adding that the company is making changes to increase efficiency.
In a filing, Walmart disclosed that Furner will earn $1.5 million as his base salary and be eligible for an annual equity of $17 million. He’s also receiving a one-time award of restricted stock units valued at $10 million.
The company also named Latriece Watkins, 51, chief merchant for Walmart US, as the CEO of Sam’s Club. The club chain is opening new stores and remodeling existing locations in the US, as it seeks to grow its membership and compete against bigger rival Costco.
Chris Nicholas, chief of Sam’s Club, will now lead Walmart’s International operations. China, India and Mexico are among growth drivers for the company outside of the US. Nicholas, 48, is succeeding Kathryn McLay, who is leaving the company.
Elsewhere, Seth Dallaire has been promoted to chief growth officer for the company. He has led advertising, membership and other non-retail units at Walmart US. He will also help guide expansion strategies for Walmart’s marketplace business. Those areas are helping fuel Walmart’s profit growth.
All changes are effective Feb. 1.
Walmart is set to join the Nasdaq 100 Index next week after moving its stock listing from the New York Stock Exchange in December.
Current CEO McMillon, who has led Walmart for more than a decade, will retire at the end of the month. He is credited with transforming the company into a digital powerhouse from a brick-and-mortar retailer. McMillon earned about $27.4 million in the latest fiscal year — including a $1.5 million of base salary, $20.4 million of stock awards and other compensation.
The next challenge for the Bentonville, Arkansas-based company is to get ahead of the artificial-intelligence race. It’s looking to incorporate the technology across operations including shopping. Its market capitalization is inching toward $1 trillion — a first for a US retailer — on the heels of strong growth and tech investments.