By Natalia Siniawski
MEXICO CITY (Reuters) -Walmart’s Mexico and Central America chief executive, Ignacio Caride, will step down as CEO and from the board of directors after just over a year, the unit of the U.S.
retailer said on Friday in a move that surprised analysts.
Walmart’s Chile CEO, Cristian Barrientos Pozo, will take over as interim chief executive until a recruitment process is completed, the company said in a statement.
Barrientos Pozo, previously senior vice president of operations at Walmart de Mexico, brings more than 26 years of retail experience, including in expansion, store openings and digital transformation, the company said.
The company, Mexico’s largest retailer, operates Walmart, Sam’s Club, and Bodega Aurrera stores across six countries.
Known as Walmex, the company reported a 10% drop in net profit in its second-quarter results released in July, citing a slower-than-anticipated recovery in consumer spending despite an 8% increase in sales.
CHANGE WELCOMED DESPITE SURPRISE
Caride’s resignation, while unexpected, could be a refreshing change, analysts said.
JPMorgan analysts said that despite the “typical noise” around management changes, a refreshed leadership could be welcomed.
“Investor concerns have been building around the retail execution weakening over the past year with poor results,” the bank said in a note.
Antonio Hernandez of Actinver research called the timing “unexpected but positive,” especially given the company’s declining margins in a competitive market.
“We view favorably the company’s fully hands-on approach to improve performance,” he said.
Santander analysts said that while the change could create short-term stock volatility, Barrientos’ strong record and familiarity with the market “should help ease concerns during this transition period.”
(Reporting by Natalia Siniawski; Editing by Brendan O’Boyle and William Mallard)
