Enrique Ostale was chosen by Wal-Mart to as its next CEO for Wal-Mart de Mexico. The retail giant made the announcement on Friday (Dec. 19).
Ostale served previously at the parent company as the top Walmex and Latin America exec. He will take over the new role on Jan. 1.
The change comes after Walmex said in October that Scot Rank was stepping down as CEO after five years, when it also reported lower third-quarter profit. Wal-Mart de Mexico reported sales growth of 4.3% in the recent quarter, while gross profits fell 4.2% during the period.
The retailer also reported that Rank is stepping down from the board after 14 years. This change in leadership comes more than two years after the New York Times published an investigative report alleging Walmex bribed local officials to open stores faster. The company now faces legal probes as a result.
Walmex, controlled by Bentonville-based Wal-Mart, has since slowed its pace of expansion.
"Mexico and Central America is a priority market for Wal-Mart. Enrique has excellen global experience within the retail industry and will dive opportunities throughout the region, both in stores and through our growing e-commerce business,” said David Cheesewright, CEO of Walmart International. “He is a strong leader, and his cross functional experience will ensure that we remain well positioned to serve 2 billion customers that count on Walmex every year.”
Ostale joined Wal-Mart Stores in 2009 as part of Wal-Mart’s acquisition of the Chilean retailer D&S which is now Walmart Chile.
In other news, Walmart de Mexico sold the retailer’s Mexican bank division. Grupo Financiero Inbursa, said Thursday (Dec. 18) it agreed to buy Walmart de Mexico’s bank business for a reported $246.94 million.
The supermarket chain's bank unit is focused on credit cards and lending for Walmex customers. Walmex has been selling non-core assets in Mexico as it seeks to focus on its supermarket and e-commerce businesses. The company sold its restaurant division earlier this year.