May 30 (Bloomberg) -- Wal-Mart Stores Inc.’s Canadian chief executive officer, Shelley Broader, is being promoted to a job overseeing its operations in Europe, part of a shakeup for the retail chain’s international business.
Broader will take the role of CEO for Europe, the Middle East and sub-Saharan Africa, overseeing 1,345 retail units and 285,000 workers, on June 1, Wal-Mart said today in a statement. She will report directly to David Cheesewright, the head of Wal-Mart International.
The move continues a reshuffling in Wal-Mart’s overseas operations that began last month. Greg Foran, the CEO of Wal-Mart’s Chinese unit since 2012, is taking over as president and CEO of Asia from Scott Price. Price is moving to the company’s headquarters in Bentonville, Arkansas, to become an executive vice president. Those changes also take effect June 1.
Broader, who joined Wal-Mart Canada as chief merchandising officer in December 2010 and became the division’s CEO in 2011, will continue to oversee operations in the country until a successor is in place, the company said. As head of the Canada business, she has had to contend with fresh competition from Target Corp., which has expanded into the country.
“Shelley’s leadership of our business in Canada during a time of increased competition underscores her knowledge of the retail environment which will serve her well in her new role,” Cheesewright said in the statement.
Wal-Mart shares rose 1 percent to $76.77 at the close in New York. The stock has declined 2.4 percent this year.
In making the management changes, CEO Doug McMillon is putting his stamp on the company after almost four months at the helm. He is working to reinvigorate Wal-Mart’s sales after a slowdown both at home and abroad.
Wal-Mart forecast second-quarter profit earlier this month that missed estimates. Earnings will be $1.15 to $1.25 a share in the period, compared with the $1.28 projected by analysts. Sales and profit in the fiscal first quarter, which ended April 30, also trailed estimates.
The forecast reflects higher U.S. health-care costs and increased spending on the Sam’s Club membership program, the company said. Same-store sales at Sam’s Club fell 0.5 percent last quarter, underperforming the rest of the chain.
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