NEW YORK--The chief executive of Wal-Mart Stores Inc.'s Asia
division, who presided over the region as it dropped plans to open
retail stores in India and contended with authorities in China over
food-safety fines, is stepping down from his role to take an
international strategy position at the company's Bentonville, Ark.,
headquarters.
Scott Price, who joined Wal-Mart in 2009 from DHL Express
Europe, will lead real estate, strategy and mergers and
acquisitions in Wal-Mart's international unit starting in June,
according to an internal memo sent to staff on Thursday. Judith
McKenna, who previously held the position, will move over to the
company's U.S. division to lead the development of new store
formats, such as Wal-Mart's smaller-format convenience and grocery
stores.
Mr. Price will be succeeded by Greg Foran, who joined Wal-Mart
in 2011 from Woolworths Ltd. in Australia and currently serves as
president of Wal-Mart China. Sean Clarke, Wal-Mart China's chief
operating officer, will succeed Mr. Foran.
"As head of our Asia business, Scott has been instrumental in
the strategic advances we have made across the region, particularly
in China and India," said the memo, which was reviewed by The Wall
Street Journal. "His commitment to our operations and to doing
business the right way through strong compliance and controls are
hallmarks of his leadership."
Wal-Mart said the move was a promotion for Mr. Price. Spokesman
Kevin Gardner confirmed the moves, which he said allows the company
to "ensure the continuity of leadership in China and the
region."
The executive shuffle in the Asia division comes after years of
management turmoil in the region, choppy sales results, and tangles
with compliance and government regulation.
Last June, Wal-Mart's India head Raj Jain left the company amid
government investigations into alleged irregularities in the
company's investments. Wal-Mart has denied accusations that it
broke foreign-currency rules through a now-severed investment in a
joint-venture wholesale business in India.
In 2011, Wal-Mart announced the resignation of its China
president, Ed Chan, as well as its senior vice president for human
resources, chief financial officer and chief operating officer in
China. The company cited personal reasons for their departures.
Wal-Mart doesn't break out sales by region, but the retailer
said China had an operating loss in the quarter ended Jan. 31.
Traffic declined by 8.2% from a year earlier as customers made
fewer trips, while sales rose 0.4% excluding newly opened or closed
stores. Traffic declined by 2.3% in Japan, while comparable-store
sales increased 0.7%.
The company has also disclosed that it is investigating possible
violations of the U.S. Foreign Corrupt Practices Act, an
antibribery law, in India, China, Mexico and Brazil. Earlier this
month, it said Chinese authorities had fined the company $9.8
million over the past three years for using misleading pricing,
selling poor-quality products and peddling donkey meat that turned
out to be fox.
Write to Shelly Banjo at shelly.banjo@wsj.com
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