Top Walmart eCommerce executives exit as Jet.com CEO takes the helm

About two months into his new role as CEO of Walmart Global eCommerce, Marc Lore has seen several management changes, including at least three departures of high-ranking execs from the division based in San Bruno, Calif.

Those departing are Neil Ashe, former president and CEO of Walmart Global eCommerce; Fernando Madeira, president and CEO of Walmart.com; and Diane Mills, a senior vice president of human resources for the eCommerce division. No departure date has been set for the executives because they are still working on projects, according to corporate spokesman Dan Toporek. Lore replaced Ashe as the division boss.

“It’s a transitional time,” Toporek said, adding that many of the big structural pieces required for its e-commerce operations were now in place.

Toperek told Talk Business & Politics Ashe and Maderia’s plans to leave were announced before Lore took over as CEO.

The retailer confirmed that Brent Beabout, who oversaw the digital supply chain, left the company a few weeks ago. He will be replaced by Jet.com co-founder Nate Faust. Wal-Mart said the roles of the new team is being reshaped following the $3.3 billion Jet.com acquisition which was finalized last month.

Wal-Mart Stores CEO Doug McMillon said Aug. 8 that Ashe “has made great progress running and growing the business … re-platforming, nearly doubling the GMV (gross merchandise value) of online offerings, building a winning e-commerce team but now there is a natural inflection of leadership change.”

McMillon also said the two brands — Walmart.com and Jet.com —will co-exist separately but be managed by Lore. He said Lore will take the best of both brands and blend improvements that benefit the entire company.

Some of the first things analysts expect Lore to fix at Walmart.com is improved search capabilities and incorporating the popular customer pricing options as they fill their online baskets. McMillon said the pricing algorithm which adjusts as customers opt to buy in bulk or chose other low cost shipping options has helped Jet.com increase its average basket amount over the traditional online order. Jet.com’s average basket contains 6 items worth more than $80, compared to single items at most retailers.

McMillon is also fond of the supplier relationships that Jet.com forged for its system. While some of the suppliers will likely never be a good fit for Wal-Mart’s everyday low price strategy, the retail giant may find areas to offer a wider variety of items online.

Jet doubled its one-day delivery of first party products penetration rate from 25% to 50% of U.S. households since the site launched in 2014. Jet is approaching 99% of U.S. households for two-day delivery. In New York City Jet offers same-day delivery at no additional costs to its shoppers. Analysts now wonder what this might mean for Walmart’s $49 annual Shipping Pass service for two-day delivery.

Jet is also making some headway in online grocery delivery as Walmart U.S. has been piloting the service in limited markets since 2014. Walmart announced in June plans to test online grocery delivery using Uber and Lyft in Denver and Phoenix. Jet is delivering fresh grocery only in select East Coast areas, but has plans to expand into more cities next year. Analysts wonder how Lore might change the retailers’ online grocery strategy.

A criticism of Jet.com was that the online retailer was not making money. Lore said prior to the deal with Wal-Mart that Jet.com might not make money until 2020.