Walmart Teams with Li & Fung, Restructures U.S. Biz

Walmart has formed a direct sourcing relationship with Li & Fung, who will act as a go-between with manufacturers, further expanding the retailer's global reach.

Walmart has developed Global Merchandising Centers in a new global sourcing strategy shift, as well as made changes in leadership. Ed Kolodzieski, president and chief executive officer of Walmart Japan Holdings G.K. and Seiyu, has been promoted to executive vice president and will oversee the retailer's global sourcing.

"We are redefining how we source products that are imported into Walmart retail markets around the globe," says Eduardo Castro-Wright, Walmart's vice chairman. "By realigning our resources, leveraging our scale and restructuring our relationship with suppliers, we will enable our businesses around the world to offer even more competitive pricing on merchandise and to provide our customers a clear and compelling assortment of better quality products at lower prices."

In addition, Li & Fung plans to create a new company to manage the Walmart account. Li & Fung has previously served as a wholesaler to Walmart. Li & Fung also does business with Target and Liz Claiborne.

Meanwhile, Walmart has restructured its business operations in the U.S. The new structure will align three operating divisions—logistics, real estate and store operation under one leadership team. Additionally, three distinct geographic business units have been created—Walmart West (Raul Vazquez, president), Walmart South (Rosalind Brewer, president) and Walmart North (Hank Mullany, president). Organizational changes were also made in merchandise operations, including: