Wal-Mart Stores, Inc.
) recently announced the appointment of Dirk Van den Berghe as the
president and chief executive officer (CEO) of its Walmart Canada
Dirk will succeed Shelley Broader, who was recently named the
CEO of Walmart's Europe, the Middle East and Sub-Saharan Africa
(EMEA) region (see
New CEO at Walmart EMEA
). Berghe will join the company on Aug 1 and will report to
Berghe is currently working with a leading global food retailer
Etablissements Delhaize Fr
), popularly known as the Delhaize Group. He is currently the CEO
of the company's Belgium and Luxembourg operations.
He has an extensive retail experience of 30 years and has worked
across Europe, Asia and the United States. In addition, he has
taught international business at universities across Europe, Asia
and the United States. Berghe also served as the international
trade commissioner for the Government of Belgium for more than a
The new CEO of Walmart Canada is expected to strengthen the
growing food business in the region. Moreover, he is expected to
employ strategies according to the changing demand scenario in
order to enhance the performance of the region.
Of late, the company is not performing well both in the U.S. and
in the international region owing to a difficult economic
environment, declining comp sales, currency headwinds and changing
consumer behavior. In the recently reported first quarter fiscal
2015, sales of Walmart international declined 1.4%. The sales
decline was higher than a decline of 0.4% in the sequentially
preceding quarter due to currency headwinds and sluggish consumer
spending environment in both mature and emerging markets. Currency
fluctuations impacted international sales by $1.6 billion in the
The economic strains in the U.S. and abroad are likely to
pressurize Walmart's low-income shoppers in fiscal 2015. Walmart
anticipates macro-economic headwinds like reductions in government
benefits, higher taxes, tighter credit and higher group health care
costs to impact fiscal 2015 results.
Walmart carries a Zacks Rank #4 (Sell). Some better ranked
Ingles Markets, Incorporated
The Kroger Co.
), both holding a Zacks Rank #2 (Buy).
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