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Wal-Mart names new CEO of US discount division

By WTOP Staff

NEW YORK (AP) — Wal-Mart is replacing the chief of its U.S. discount stores in what could be an indication that it’s losing confidence that its largest business unit will rebound after more than a year of disappointing results.

Greg Foran, who was promoted to president and CEO of Wal-Mart Asia earlier this year, will succeed Bill Simon, who had been CEO of Wal-Mart’s U.S. stores for four years, effective on Aug. 9.

The move, which was announced Thursday, marks the company’s first big management shake-up under Doug McMillon, who took over as CEO of Wal-Mart Stores Inc. in February. Foran, 53, will report directly to McMillon.

Simon’s departure isn’t surprising. He had been considered a top candidate for the critical job at the Bentonville, Arkansas-based retailer and was previously passed over for McMillon. But some analysts question the timing of Simon’s resignation. Wal-Mart, which reports second-quarter earnings results next month, is heading into the two biggest shopping periods of the year: the back-to-school and winter holiday seasons.

“A decision to replace a high-ranking leader of a major retailer before back-to-school and before holidays speaks volumes,” said Brian Sozzi, CEO of Belus Capital Advisors. “McMillon is starting to clean house and pick executives who will move quicker.”

Wal-Mart declined to make either Simon or Foran available for interviews on Thursday. But Wal-Mart spokesman Dave Tovar told The Associated Press that Simon’s resignation was mutual. He said that Simon and McMillon have been having ongoing discussions about Simon’s departure. On July 18, Simon officially agreed to retire.

In response to the timing of the resignation, Tovar said merchandise for the back-to-school and the holiday seasons have already been ordered. “This will give an opportunity for Greg to look at the plan and see if there are any other suggestions for making it better,” said Tovar, who added that Foran will be taking over the U.S. discount business at a time when the company evaluates its future budget and strategy planning, a three-month period that ends in September.

The leadership change at Wal-Mart’s U.S. stores comes after the division has suffered five straight quarters of sales declines at stores that have been open at least a year. The unit, which accounts for 60 percent of the retailer’s overall sales, has been hurt by a tough economy that has squeezed its low-income customers, along with fierce competition from dollar stores and Amazon.com.

The move to name Foran indicates that Wal-Mart is looking at new ways to boost sales at its U.S. discount division.

Foran, a 35-year retail industry veteran, joined Wal-Mart in 2011 and became president and CEO of Wal-Mart China in 2012 until he was promoted to president and CEO of Wal-Mart Asia this year. Before joining Wal-Mart, Foran held a number of roles with Woolworths, the leading retailer in Australia and New Zealand.

“Greg is one of the most talented retailers I’ve ever met,” McMillon said in a statement.

Foran follows Simon, who joined Wal-Mart in 2006 as senior vice president of professional Services. He was promoted to chief operating officer for Wal-Mart’s U.S. division from 2007 to 2010. During that time, he created and launched Wal-Mart’s successful $4 prescription drug program.

When Simon took on the role of CEO of Wal-Mart’s U.S. division in 2010, he led a turnaround of the unit by correcting mistakes it made in pricing and merchandise.

He focused on the company’s roots of offering everyday low prices. He also helped restore thousands of popular items that the company had stopped selling in an overzealous attempt to de-clutter the stores. That helped Wal-Mart get out of a two-year sales slump in late 2011.

Simon also has been leading the company’s campaign to revitalize U.S. manufacturing and helped to spearhead the company’s move to accelerate its plans for small-store formats.

Wal-Mart said that Simon will be available for the company on a consulting basis for the next six months. According to the terms of his retirement pact, he can’t work for a business that competes with Wal-Mart for two years. Foran’s successor will be announced at a later date.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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