Coughlin leaves big shoes to fill at Wal-Mart

DSN Retailing Today, Jan 10, 2005 by Mike Troy

BENTONVILLE, ARK. -- Although other executives will assume Wal-Mart vice chairman Tom Coughlin's responsibilities when he retires later this month, replacing his leadership and ability to motivate others will be more challenging.

Coughlin, who served as an inspirational force in much the same vein as Wal-Mart founder Sam Walton and former vice chairman Don Soderquist, was an individual Wal-Mart frequently turned to throughout his career when circumstances required additional focus.

Coughlin, 55, joined Wal-Mart in 1978 as vice president of loss prevention. At the time, Wal-Mart had been a public company for eight years and had experienced some dramatic growth, but annual sales were still less than $1 billion, and the average size of the company's 229 stores was just 45,000 square feet.

Coughlin went on to serve as vice president of human resources, executive vice president of operations for Sam's Club and executive vice president of WM-Mart's specialty division, which included jewelry, one-hour photo, shoes, optical and pharmacy. Then, in 1995, Wal-Mart tapped Coughlin to serve as executive vice president of operations for U.S. stores.

He was eventually named coo of the stores division, and then in January 1999 was named president and ceo of the stores division. In 2001, he joined the Wal-Mart board, and when former senior vice chairman Don Soderquist retired in July 2000, he assumed responsibility for loss prevention and marketing. Wal-Mart turned to Coughlin again in August 2002, when former Sam's Club president and ceo Tom Grimm left the company. Coughlin was given oversight of the warehouse club division, and his title changed to president and ceo of Wal-Mart and Sam's Club USA.

Less than a year later, in April 2003, Coughlin was named vice chairman and assumed additional responsibility for logistics, real estate, global procurement and WalMart.com. Later that same year, Coughlin was treated for arterial blockage and hospitalized for 10 days.

"Tom Coughlin has achieved one of the most successful business careers that anyone could imagine, and he is a great example of what a person can accomplish in the retail field today," said Wal-Mart president and ceo Lee Scott. "I have seen first-hand the significant difference that Tom has made at WM-Mart. This is a day for anyone connected to our company to reflect on the kind of leader Tom Coughlin is and to celebrate the difference he has made at Wal-Mart."

When his departure from Wal-Mart becomes official later this month, his significant responsibilities will be assumed by numerous other executives that include the following:

The Wal-Mart Stores division will continue to report to Mike Duke, who was named president and ceo of the division in April 2003 when Coughlin was named vice chairman. Duke, who reports directly to Scott, also assumes oversight of logistics, finance and the corporate compliance office created last summer that is led by Robin Forbis, senior vice president of finance, strategy and compliance.

The Sam's Club division, overseen by president and ceo Kevin Turner, will report directly to Scott. Turner previously reported to Coughlin.

Wal-Mart's rapidly growing global procurement group based in Shenzhen, China, not far from the Wal-Mart China home office, will report to John Menzer, president and ceo of Wal-Mart International.

Real estate and store planning responsibilities will fall to Tom Hyde, executive vice president of legal and corporate affairs. Hyde, who reports to Scott, joined Wal-Mart in June 2001 as executive vice president and senior general counsel to deal with Wal-Mart's mounting legal woes.

Responsibility for WalMart.com will be assumed by Tom Schoewe, who currently serves as executive vice president of finance and cfo.

Lawrence Jackson, who recently joined Wal-Mart as executive vice president of the people division, will assume responsibility for Wal-Mart's diversity office, led by senior vice president and chief diversity officer Charlyn Jarrels Porter.

Commenting on his departure in a prepared statement, Coughlin said: "It is tough to leave WM-Mart, but the fact is we've got the people in place who are ready to step up and perform at the highest level. As the management team continues to develop, I'm confident they will be better than I ever thought about being. Speaking personally and for the business, it is simply the right time for me to move on."

Coughlin is a native of Cleveland who earned a political science degree from California State University in Hayward, Calif. He will remain on the Wal-Mart board of directors until a replacement is elected in early June at the company's shareholders meeting.