Wal-Mart Stores Inc. has got its new US chief but with the new changes in the management, serious challenges have come fore for the company.
Greg Foran, who will succeed Bill Simon, faces key challenges before taking charge on August 9. Issues like empty shelves, cranky customers, slumping sales both in its stores and online, losing customers and many more are haunting the retail giant.
Notably, poor performance in the US stores lowered the projected sales as well as the profits in the quarter that ended April 30. Moreover, the profit forecast for the current quarter also looks grim.
It would be interesting to watch how Wal-Mart, which expects second-quarter earnings results in August, will convert the biggest shopping periods, i.e. the back-to-school and winter holiday seasons, into impressive profits.
The market analysts say that the retailer giant is facing critical times by cheaper and more convenient options like online and dollar stores.
The new CEO’s most important requirement is likely to get stuff on the shelves. The firm has also slashed its employees in the US by over 20,000 since 2008. However, it has added 650-plus stores. This has led to merchandise piling up in the back of stores and in aisles. Adding to the woes is dearth of workers to restock the shelves.
Foran’s appointment comes at a time when Wal-Mart is facing its worst phase and he does not have enough resources on his plate.