Walmart CEO McMillon’s First 90 Days
As Doug McMillon steps into his role as new CEO of Walmart, he inherits a company rife with challenges. Chief among these is the growing consensus that Walmart needs to start providing quality jobs to its massive US workforce. Is he up for the task?
On February 1st, Doug McMillon will become Walmart’s fifth CEO and the youngest to lead the company since Sam Walton. His first 90 days will likely set the tone for his tenure as CEO. Here are a few things he will likely be graded on.
Worker Treatment & Wages
For the last two years, worker protests and strikes have become the main focus around Black Friday, the biggest shopping day of the year. Just prior to Black Friday 2013, Walmart received a tremendous amount of unwanted attention as news broke that in Ohio the company was holding a canned food drive, asking its employees to donate in order to feed their hungry coworkers. A number of publications have listed “wage outrage” as an issue that will warrant McMillon’s immediate attention.
Legal Woes
Among the concerns facing the company, troubles with legal compliance have proven to be among the most costly. McMillon has already faced this challenge, as he sits on the board of Walmart de Mexico and was international CEO when news of Walmart’s alleged bribery scandal broke. The company continues to pay the price for its alleged violations of the Foreign Corrupt Practices Act.
Unfortunately for Walmart, it is not only under investigation for breaking the law abroad. In the US, the National Labor Relations Board recently issued a complaint against the company for illegally retaliating against workers who speak out for change. It looks likely that Walmart will also face claims of defrauding contracted warehouse workers.
Adequately Stocked Stores & Consumer Satisfaction
Due to inadequate staffing in stores, Walmart has faced major challenges with keeping the shelves stocked and the floor clean. Both Bloomberg and New York Times covered these issues as increasing areas of irritation among consumers. CEO McMillon will be forced to address staffing levels in order to get stores to meet consumers’ expectations.
Growth
Lastly, Walmart continues to struggle in entering urban areas. Due to community concerns over Walmart’s treatment of workers in the US and throughout the supply chain, Walmart faces substantial opposition in many of the cities it would like to enter. McMillon will have to demonstrate a new attitude toward working with communities and address issues regarding worker treatment if the company wants to see substantial international and urban growth.