Friday January 14, 10:41 am Eastern Time
Wal-Mart CEO David Glass Resigns
Wal-Mart President and Chief Executive David Glass Resigns; Chief Operating Officer Lee Scott Will Become Head of World's Biggest Retailer
By RACHEL BECK
AP Business Writer
NEW YORK (AP) -- Wal-Mart Stores Inc. president and chief executive David Glass, who is credited with building the company into the world's biggest retailer, stepped down today in a move that was widely expected.
Glass, 64, succeeded Wal-Mart founder Sam Walton as Wal-Mart CEO 12 years ago.
Lee Scott, who is chief operating officer and vice chairman of Wal-Mart for the past year, will succeed Glass as CEO and president.
Analysts said that Scott was tapped about a year ago as next in line to take over for Glass, who will remain with Wal-Mart for at least the next year as chairman of the executive committee of the board of directors.
''Lee Scott, just like David Glass, really understands this company, and Wal-Mart won't miss a beat as it moves forward,'' said Walter Loeb, who runs the retail consulting firm Loeb Associates.
Investors took today's announcement in stride, sending Wal-Mart shares up 25 cents to $65.37 1/2 in early trading on the New York Stock Exchange.
Wal-Mart has expanded significantly under the Glass' watch, becoming one of the biggest corporations in the world, rivaling giants such as General Motors and Ford.
When Glass took over more than a decade ago, the company had 1,200 stores and was the nation's third-largest retailer. Now, Wal-Mart now operates more than 2,485 Wal-Mart discount stores and 456 Sam's Clubs warehouse stores in the United States, plus about 600 stores around the globe.
Wal-Mart increased it's annual revenues from $16 billion in 1988 to an estimated $165 billion in the fiscal year that will end on Jan. 31.
Under Glass, the company began its successful Supercenter concept, which combines discount stores with grocery operations. More than 700 of its stores are now Supercenters, and about 160 more will be added this year. |
