Top 100 Retailers Chart 2014 - Mass Merchants
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Doug McMillon, former head of Walmart International, took over as head of Wal-Mart Stores in February. “Technology, data and information are opening new doors for us to lead through. Our purpose of saving people money will always be relevant, but we’ll do it in new ways,” he told shareholders at last month’s annual meeting.
New leadership is also in place at Target, now under the direction of former CFO John Mulligan, who was named interim chief executive after CEO Gregg Steinhafel resigned in the wake of last year’s massive data breach. Among Mulligan’s challenges are restoring shopper confidence in Target and overseeing the chain’s small-store urban initiative.
Amazon.com’s Prime has adopted Costco’s fee-based membership model and a number of other retailers have borrowed its “treasure hunt” approach to in-store merchandising. Now Costco finds itself imitating other retailers to “get younger people into the warehouses,” says CFO Richard Galanti. “We’re not going to do anything rash, but we’re also not going to have our head in the sand here.”
The company is introducing more organic produce and other products in its grocery offerings since buyers of organic goods “tend to be a little younger” than the typical Costco shopper, Galanti says. But as some analysts have noted, Millennials are congregating in urban locales, while Costco’s bulk-purchase goods are aimed at car-driving suburban shoppers with plenty of storage space.
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