Wal-Mart Stores Inc. Announces Grimm’s Retirement

Following a disappointing quarter at its Sam’s Club division, Wal-Mart Stores Inc. of Bentonville shook up the unit’s management structure when it announced on Aug. 23 that the Sam’s Club CEO and another top manager would retire.

Thomas Grimm, 58, stepped down as president and CEO of Sam’s Club, a position he has had since October 1998. He was succeeded by Kevin Turner, 37, chief information officer for the parent company.

Turner, 37, will report to Thomas Coughlin, 53, who became president and CEO of the individual Wal-Mart and Sam’s Club U.S.A. operations. Mr. Coughlin previously had run just the Wal-Mart unit.

Wal-Mart also announced the retirement of Phil Sutterfield, executive vice president of merchandising for Sam’s Club.

While the company as a whole has been excelling in sales and profit growth, the Sam’s Club division has been lagging behind Wal-Mart stores.

Earlier in August, Wal-Mart reported that the Sam’s Club division had a meager 3 percent increase in operating profit to $275 million in its fiscal second quarter, which ended July 31. By contrast, the company’s Wal-Mart stores saw operating profit jump 17 percent to $3.05 billion.

The company’s net income surged 26 percent on a 13 percent revenue gain. July same-store sales at Sam’s Club rose just 1.9 percent compared to 5 percent for the Wal-Mart unit.

Linda Dillman, 46, will succeed Turner as Wal-Mart’s chief information officer. She had been vice president of international systems development.

Doug McMillon, 35, the senior vice president and general merchandise manager for Wal-Mart, was promoted to executive vice president, succeeding Sutterfield.