By Amy Guthrie
MEXICO CITY-- Wal-Mart Stores Inc. on Friday said the head of
its Latin American business will also take over as chief executive
of its Mexican and Central American operation, Wal-Mart de
Mexico.
Enrique Ostalé, who is already Wal-Mart de Mexico's chairman,
will assume the CEO role at one of Wal-Mart's biggest foreign
operations in January, replacing Scot Rank, who is leaving the
company.
The leadership change comes on the heels of a tough year for
Wal-Mart in Mexico, a country that supplies around 6% of the
Bentonville, Ark., company's annual sales.
Weak consumer spending this year has resulted in a slight sales
contraction at stores open more than 12 months in Mexico, with
Wal-Mart saying it needs to "rejuvenate" the business, known as
Walmex.
New store openings have also slowed since allegations emerged in
2012 that the retailer had bribed public officials to speed store
openings in Mexico. Justice Department investigations into those
allegations continue, while Walmex has stiffened its internal
controls.
"The dual role of CEO for both Walmex and Walmart 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," David
Cheesewright, CEO of Wal-Mart International, said in a
statement.
Mr. Ostalé joined Wal-Mart in 2009 following the company's
acquisition of Chilean retail chain D&S, which is now Wal-Mart
Chile.
Write to Amy Guthrie at amy.guthrie@wsj.com
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