US Walmart CEO Bill Simon Stepping Down; Asia Head Greg Foran to Take Over

In an utterly unexpected move, Wal-Mart Stores Inc announced Thursday that U.S. stores CEO Bill Simon will be stepping down to make way for Greg Foran, the president of Walmart Asia, effective Aug 09, 2014.

Simon will be stepping down from the top post after four years. The reason for his departure was not announced but insiders say that he is leaving "on good terms." Simon joined Walmart in 2006 as senior vice president of professional services and was promoted to chief operating officer in 2007 before taking up the role of CEO of the U.S. segment.

Simon was also one of the top choices for CEO of WalMart on the whole, but lost to Doug McMillon in the running.

Experts say that the sudden departure of Simon from the company shows WalMart's insecurity over its U.S. stores performance and other issues like unemployment numbers.

Retail analyst Brian Sozi told USA Today:

"When you're at Wal-Mart, you're not out there giving any interviews, especially ahead of back-to-school and holiday ... (unless) you have something positive to say," referring to Simon's comments on the earnings call where he said all the problems would take some time to solve.

But Walmart claims that this was the right time for Simon to step down.

"I think this is not unusual when companies go through these things. They've talked over the last several months, and recently Bill and Doug agreed this was the right time for him to step down, to leave the company and look for his next opportunity," David Tovar, vice president for communications at Walmart told The New York Times.

"During Bill's eight years of service to Walmart, his passion for our mission, dedication to our associates and our customers, and innovative thinking pushed us forward. From the very beginning, his vision led us to lower the cost of health care through our $4 prescription offering. And, most recently, he put us on a path to future growth with small formats and efforts that integrate digital and physical retail," CEO McMillion said in a statement.

On the other hand, Foran is ready to take over the new position.

"Being asked to lead the Walmart U.S. business is a privilege that I don't take lightly. I am excited to get started. The needs of our customers are changing dramatically and we have an enormous opportunity to serve them in new and different ways. We must be fierce advocates for our customers, work meticulously to exceed their expectations and earn their trust every day," Foran added in the statement.

Foran joined the company in October 2011 and became president and CEO of Walmart China in March 2012. He has previously worked with Woolworths, the leading retailer in Australia and New Zealand and served as general manager of Big W and Dick Smith Electronics.