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To: Glenn D. Rudolph who wrote (146107)	8/25/2002 1:06:20 AM
From: H James Morris	Read Replies (1) \| Respond to of 164685

I have an opinion on Costco also. Cheryl made me go to our local Costco today. It was packed, and I couldn't stand the long lines at the checkout counter. And all the SUV's in the parking lot was all I could bear. Well there goes my shopping at Costco for another year even though I still own the shares. Wal-Mart too.:) >>Friday August 23, 3:14 pm ET By Angela Moore NEW YORK (Reuters) - Wal-Mart Stores Inc. (NYSE:WMT - News), the world's largest retailer, said on Friday Tom Grimm has retired as president and chief executive of its Sam's Club unit, which is struggling in the face of tough competition. ADVERTISEMENT Grimm, 58, will be replaced by Kevin Turner, 37, who had been Wal-Mart's chief information officer. He will report to Tom Coughlin, president and CEO of Wal-Mart Stores USA, who will now also be president and CEO of Sam's Club USA, the company said. Growth at Sam's Club has lagged behind Wal-Mart's other units. Earlier this month the warehouse segment posted operating profit growth of just 3 percent for the second quarter. Lee Scott, Wal-Mart's president and CEO, called the performance "disappointing" and "not acceptable." In comparison, operating profit at the flagship Wal-Mart Stores segment was up 17 percent, and operating profit at the increasingly important international arm was up 62 percent. Markets are saturated with warehouse clubs since Sam's and its rivals Costco Wholesale Corp. (NasdaqNM:COST - News) and BJ's Wholesale Club Inc. (NYSE:BJ - News) went through a rapid buildup in an attempt to gain market share. "Sam's has been a follower rather than a leader in the sector," said Ulysses Yannas, an analyst at brokerage firm Buckman, Buckman & Reid. "They were behind Costco in wine and better quality jewelry, and Costco is closer to metropolitan areas and can attract a higher-income customer." Turner joined Wal-Mart in 1986 as an hourly associate and worked in several in-store jobs, including cashier and customer service manager. He was named CIO in 2000. Phil Sutterfield, executive vice president of merchandising for Sam's Club, also has announced his retirement. He will be replaced by senior vice president and general merchandise manager Doug McMillon. General merchandise manager at Sam's is another key role, and one of the ways Sam's needs to distinguish itself from its competitors. "This is not a high-growth business for them," said Ira Kalish, chief economist with consultants Retail Forward. "Wal-Mart is intent on being mainly a consumer-oriented business with Supercenters, Neighborhood Markets and new brands. But Sam's Club is not a bad asset, it's one part of an organization that has tremendous leverage with suppliers." Wal-Mart also picked vice president of international systems development Linda Dillman to replace Turner as chief information officer. The hires are company veterans, which is not unusual for the Bentonville, Arkansas-based retailer. "With Wal-Mart you seldom get external hires, they like to use people who have performed well for them," said Yannas. "Whether they accomplish it or not -- we will see. But from what I've seen with Wal-Mart, it may take a little time, but in the end they get what they want." Shares of Wal-Mart were down $1.11 at $53.14 in late trading on the New York Stock Exchange, off a 52-week high of $63.94, up from a year low of $43.60. biz.yahoo.com