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Organizational Change Memo From John Fleming

To: All US Associates
From: John Fleming, Executive Vice President and Chief Merchandising Officer – Walmart US
Date: Jan. 28, 2010
RE: Organizational Changes in Merchandising

I’d like to share with you several organizational changes we’re making in Merchandise as part of the transformation we began three years ago.

Earlier today, Bill Simon announced the creation of an important new organization led by Andy Barron, Senior Vice President, Store Merchandising Execution, who will report to both Bill and to me. Andy’s team will design merchandise strategies for each of Walmart US’s new geographic business units and translate those strategies into executable, customer-focused programs. In addition, the In-Store Presentation and Store Groups, currently in the Customer Experience organization, will move to Andy’s Store Merchandising Execution team, close to our business units. For Merchandising, this means we’ll be even more connected with operations – and with our customers.

As you learned this morning, Realty will now report to Bill Simon. With this move, Scott Huff, Senior Vice President, Customer Experience, and his team will transition to the Realty organization, providing complete alignment from store siting to store execution. In addition, Tim Austin, Vice President, Store Planning, and his team will move into Scott’s organization, improving our ability to create the experience customers want.

Under our Home and Hardlines divisions, we’re making moves to group-related categories. Mike Moore will assume responsibility for Automotive, Stationery, Hardware, Fabric and Crafts, and Sporting Goods as Senior Vice President, Merchandising, Hardlines. Mike joined Walmart in 1988 and has been a strong leader, most recently being promoted to Senior Vice President, West Division Operations in 2004.

Karen Stuckey will add responsibility for Outdoor Living and Seasonal categories as the Senior Vice President, Home Merchandising. Karen has shown tremendous leadership in her current role over the Home category, and the unified team will be even stronger. Now when a customer is shopping for home decorations, she will find solutions all in one place. Both Mike and Karen will report to me. Carey Cuddeback will transition to Rick Webb’s team where she will lead the Product Lifecycle Management (PLM) system project.

With these moves to align general merchandise in a more powerful way, we’re increasing our focus on brand strategy. Andrea Thomas will move from her private brand management role in marketing to an expanded role in Merchandising as Senior Vice President, Brand Merchandising for Home, Hardlines and Entertainment. Andrea will report to me.

As part of the new Global Sourcing structure that was announced earlier today, Senior Vice President Michael Lewis will lead the Global Merchandising Center (GMC) for packaged grocery products. Michael will report to Jack Sinclair. Michael’s team will be responsible for leveraging our global scale to source products for our grocery business.

Finally, with Jeff McAllister taking a new role as Senior Vice President, Operations, for the newly created Texas Division, Paul Beahm will assume Jeff’s responsibilities as Senior Vice President, Health and Wellness Operations.

Please join me in congratulating these associates on their new assignments and supporting those on our teams who will look for new roles. Thank you for the contributions you have made that bring us to this point in our history – and for all you continue to do to serve our customers.

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