Wal-Mart Stores named director Greg Penner as its next chairman and touted its e-commerce investments at an annual meeting that the retailer called a “turning point.”
Penner, 45, will succeed Rob Walton as chairman of the world’s largest retailer. Walton, who has been chairman since 1992, will remain on the board. The move keeps the chairmanship within the family: Penner is the grandson-in-law of founder Sam Walton.
The announcement was part of a lavish annual meeting for the world’s largest retailer, which used the event as a showcase for its turnaround plans. Wal-Mart set the stage for Penner’s ascension a year ago when it named him to the newly created position of vice chairman. The Walton family, which owns about half the company’s shares, is betting that Penner’s technology background can help guide the retailer as it ramps up e-commerce and smaller-format stores. He was already standing in as chairman when Rob Walton, 70, wasn’t present.
“He brings an ideal blend of finance, technology and international business expertise – as well as a deep knowledge and love of Wal-Mart – to this role,” Walton said in a statement.
Wal-Mart’s chief executive officer, Doug McMillon, is trying to pull the retailer out of a sales slump. Earnings and revenue both missed analysts’ estimates last quarter, weighing on Wal-Mart’s stock.
He said on Friday that efforts to modernize the company and boost e-commerce will put Wal-Mart on the right track.
“This is a turning point in our story, and the investments we’re making today will set the stage for strong and sustainable growth,” McMillon said.
Bloomberg News, edited by ESM
