Wal-Mart to change merchandising operations


Wal-Mart Stores Inc. (NYSE:WMT) will be re-organizing its marketing and merchandising operations here in the U.S. according to company statements this past Wednesday. One of the moves includes moving its chief marketing officer, John Fleming -- formerly of Target Corp. (NYSE:TGT) -- to the role of chief merchandising officer.

Wal-Mart is moving into the second phase of a three-year strategy to increase sales and profitability and sees this as a key milestone in that process, I think. I've been highly skeptical when Wal-Mart has added more upscale items to its shelves -- like higher-end flat-panel televisions -- as just installing nice goods on the shelves of a rather mundane presentation won't magically sell them.

Even by cutting prices on toys and food leading up to Christmas, the sales at the world's largest retailer were pretty lackluster by most accounts. With all the turmoil in Wal-Mart's marketing and merchandising department in recent months, the company has said that its merchandise initiatives will be focused on five divisions -- grocery, entertainment, apparel, home and pharmacy & optical -- with Fleming leading four out of the five.

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