Wal-Mart, the world’s largest retailer, surprised investors on Friday by announcing that Lee Scott, chief executive since 2000, would retire in February. The move comes as the retailer is flourishing amid the economic downturn. Mike Duke, head of its international division, will succeed Scott, 59. Rob Walton, chairman of Wal-Mart’s board and son of the group’s late founder Sam Walton, said the change “occurs at a time of strength and momentum” for Wal-Mart. Scott presided over a reversal in Wal-Mart’s fortunes in the past three years, during which it has improved both the financial performance of its stores and its record on environmental and social issues. Wal-Mart shares rose as much as 3.6% to $52.48 on Friday. The stock is up 12.4% this year, against a 47% decline in the S&P500 retail index. In Lex’s view, “there is little broken that Duke needs to fix”. His main challenge will be to continue his predecessor’s role as the public face of Wal-Mart. Appeasing unions and environmentalists while preaching a message of sustainability from atop a large and aggressive retailer requires the diplomatic skills of a prince, and “this duke must rise to the task”.

This entry was posted by Gwen Robinson on Monday, November 24th, 2008 at 4:48 and is filed under Capital markets, People. Tagged with wal-mart. Edit this entry.