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Walmart names Kathryn McLay as Sam’s Club CEO

Veteran retail exec joins club chain after overseeing Neighborhood Markets

Russell Redman

November 15, 2019

3 Min Read
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Walmart executive Kathryn McLay has been promoted to president and CEO of Sam’s Club, taking over from John Furner, who this month succeed the departing Greg Foran as Walmart U.S. CEO.

McLay, 45, takes the reins as Sam’s chief executive effective Nov. 15. Reporting to Walmart President and CEO Doug McMillon, she also holds the title of corporate executive vice president. Since February 2019, she had served as executive vice president of Walmart U.S. Neighborhood Markets. Walmart disclosed the appointment Friday in an 8-K filing with the Securities and Exchange Commission.

Furner, 45, became CEO of Walmart U.S. on Nov. 1 after serving as president and CEO of Sam’s since 2017. Walmart announced his appointment last month in reporting the exit of Foran, who is joining Air New Zealand Ltd. as CEO. Plans call for Foran, who had been Walmart U.S. CEO since August 2014, to stay on at Walmart through Jan. 31 to help with the transition.

Kathryn McLay_Sams Club CEO.jpgMcLay (left) joined Walmart in April 2015 as vice president of U.S. finance and strategy and then in December 2015 was promoted to senior vice president of supply chain. In that role, she led the organization to develop an integrated, end-to-end Walmart U.S. supply chain. She also oversaw the import and reverse supply chain teams, with responsibility for ensuring product flows throughout international and domestic distribution channels to and from stores. McLay served in that post until earlier this year, when she became executive vice president of Neighborhood Markets for Walmart U.S., where she directed the growth and operations of nearly 700 Neighborhood Markets nationwide.

Related:John Furner to succeed Greg Foran as Walmart U.S. CEO

Before coming to Walmart, Ms. McLay served for 14 years in a range of strategic, finance and supply chain roles at Australian retailer Woolworths Ltd. Most recently, she served as Woolworths’ general manager of replenishment from October 2012 through March 2015.

Yesterday, Walmart reported improved third-quarter results at Sam’s. The wholesale club chain saw net sales inch up 0.7% to $14.63 billion from $14.52 billion a year earlier. Comp-store sales grew 0.8% (0.6% excluding fuel). Transactions were up 5.7% year over year, but ticket size was down 5.1%. Walmart noted that reduced tobacco sales negatively affected comp-store sales by 350 basis points.

“At Sam’s Club, the team drove strong comp sales of 4.1%, excluding fuel and tobacco, reflecting the response by members to the improvements we’ve made in merchandising as well as the work we’re doing to run a simpler, more focused club model,” McMillon told analysts Thursday in a conference call.

Related:Sam’s Club to sell bundles of discounted health care services

“Fresh continues to be an area of strength. We’ve made improvements to the value prop in fresh at nearly half of our clubs, and we’ll continue to roll out that program,” he said. “We’re also doing well with private brands, where we’ve enjoyed benefits from great product and a single brand: Members Mark. The technology we’re providing our associates like the Ask Sam app helps them do their job more efficiently, which means they’re happier and more productive. Members are noticing, too. In fact, overall membership count, renewal rates and Plus renewal rates all improved for Q3.”

E-commerce sales at Sam’s increased 32% overall in the quarter and were up 1.7% on a comparable basis. Operating income fell 13.7% to $327 million.

“Operating income was pressured in part by accelerated strategic investments in price, technology investments and the growth of e-commerce,” Walmart Chief Financial Officer Brett Biggs said in the call.

Last November, Sam’s opened a concept store in Dallas called Sam’s Club Now. Part retail store and part technology incubator, the 32,000-square-foot location — about a quarter of the size of a typical Sam’s wholesale club — pilots technologies that foster a more interactive shopping environment in-store and fine-tune the omnichannel experience.

Overall, Sam’s Club operates 599 warehouse club stores, including 572 pharmacies, across the United States and Puerto Rico.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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