What Doug McMillon as CEO Means for Wal-Mart

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Nov. 25 (Bloomberg) -- Bloomberg’s Deirdre Bolton examines the career of Doug McMillon, Wal-Mart’s choice to replace retiring chief executive officer Mike Duke and some of the main issues he faces in the job. She speaks on Bloomberg Television’s “In The Loop.”

He has been running their international operations.

Operations in 26 countries.

He's the former ceo of sam's club as well.

He is essentially a lie for.

He is taking over at the helm and in pretty challenging times.

No doubt a very challenging time.

Walmart has come under a lot of criticism.

Not only has growth not been as fast as some investors would have liked.

Certainly growth domestically.

There is also that bribery scandal in mexico -- they have had a lot of headwinds and we have had this list of wal-mart's woes.

You have middle-class consumers really slowing down in spending, so walmart essentially needs to restore sales in the u.s. facing increasing competition from dollar stores.

Walmart has cut its forecast twice this year.

Competition heating up into the holiday season.

We have some toy prices -- you will be shopping and i will be shopping but you can see where walmart is still cheaper than the other brick-and-mortar stores if you like.

But if you look at amazon, amazon is cheaper.

The things that amazon stocks.

It's not necessarily merchandisers they have relationships with.

But it is cheaper and it is delivered to your door, so that is some serious competition for walmart.

Some of the questions swirling around in the appointment of doug macmillan is how is the company going to respond to the challenge of target and foreign retailers in markets like china?

I talked to jim breyer, a venture capitalist behind facebook.

He's also the formerly director at walmart until june of this year.

He was there one mike duke said he wanted to retire and this is what he says about mcmillan -- he has an innate feel for sam's club and i wouldn't be surprised if he took samson of -- sam's club into markets like china.

One could argue walmart has been slow to do that.

As far as what walmart has been doing so far in china, they have actually been closing stores.

I spoke with an executive and said how can you do this?

The only place that it's growing is in china and brazil.

The executive said we are closing stores but ones that are underperforming -- the idea is to strategically open new stores, presumably that are placed stores, so that's certainly a big part of their strategy.

I, walmart closing out the joint venture there, so there are questions about how they are going to capture middle-class dollars there.

They also closed a restaurant business, so it's a time of change.

The fact that mcmillan is the head of international business will give him a leg up.

He has to leave the company through these changes.

E-commerce -- the battle with amazon, breyer told me that doug has thought about this as deeply as any retailer in the world.

Wal-mart, for as big as it is only gets 2% of its sales online.

You could say it such a big company that those are big numbers, but it's a small or centage.

Thank you very much.

Jeter baltimore with the latest

This text has been automatically generated. It may not be 100% accurate.

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