MEXICO - With the departure of former CEO Scot Rank, Wal-Mart de México's Chairman of the Board, Enrique Ostalé, is preparing to assume a new mixed role as both Chairman and CEO, according to a press release.
“Mexico and Central America is a priority market for Wal-Mart,” said David Cheesewright, President and CEO of Wal-Mart International and Wal-Mart de México and Centroamérica Board Member. “Enrique has excellent global experience within the retail industry and will drive growth opportunities throughout the region, both in stores and through our growing e-commerce business. He is a strong leader, and his cross functional experience will ensure that we remain well positioned to serve the 2 billion customers that count on Wal-Mex every year. The dual role of CEO for both Wal-Mex and Wal-Mart Latin America will give Enrique the unique ability to leverage our expertise and capability across nine markets, taking advantage of the growth opportunities that the whole region has to offer.”
The longtime Wal-Mart executive, who also serves as CEO for Wal-Mart Latin America, is expected to provide some much needed stability for the retailer after setbacks involving a string of bribery allegations, high-level executive departures, and the loss of Rank. It is worth noting that Antonio Ocaranza, a Spokesman for Wal-Mart de México, has gone on the record saying that Rank’s resignation from his position as CEO and, more recently, from the Board position he held for 14 years was unrelated to the ongoing bribery investigations.
“We appreciate the leadership role that Scot played in the Wal-Mex business for 14 years and wish him success in his new endeavors,” added Ostalé.
Ostalé first joined Wal-Mart in 2009 after the retailer's takeover of D&S (present-day Wal-Mart Chile) where he had held several positions in merchandising, operations and finance stretching back to 1989. From 1997 to 2000, he served as Chief Financial Officer (CFO) for the Chilean retailer and later as President and CEO of Wal-Mart Chile from 2006 until March 1, 2013, when he was appointed President and CEO for Latin America.
According to the New York Times, Ostalé is expected to begin his new role on January 1st, 2015. Whether he will be able to turn around division's recent poor economic performance, including a 8% fall in profit during Q3, remains to be seen. Wal-Mart, however, appears to be confident that they have the right man for the mission in Ostalé. Stay tuned.
