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 There are about five zone managers in each of Wal-Mart's 3,407
supercenters, and those employees will be reassigned to department
manager or assistant manager positions, spokesman Kory Lundberg
said.
In addition, Wal-Mart, the world's largest retailer, plans to add
7,000 to 8,000 department manager positions, Lundberg said. The cost
of doing so is included in the $1 billion investment in wages and
staffing outlined in February, he said.
The moves are part of broader strategy by the retailer to rejuvenate
sales in the United States by bolstering customer service and
addressing other perceived weaknesses such as poorly stocked
shelves.
"Putting in new departmental managers will make a significant
difference," Judith McKenna, chief operating officer of Wal-Mart's
U.S. operations, said at a briefing for analysts and investors
earlier this month.
The company, which has a total of 4,500 Walmart stores in the United
States, in February flagged plans to increase the number of
department store managers but had not disclosed a number. It also
said then that it would lift the minimum starting wage for
department heads to $13 an hour this summer and $15 an hour next
year while lifting the minimum pay of half a million rank-and-file
workers to at least $9 an hour this month.
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Zone managers, which have been in charge of a handful of
departments, have been told of the change over the past few weeks.
In switching to other manager roles in the store they will be paid
at least what they make now or more, Lundgren said.
Increasing the number of people overseeing just one department, such
as electronics or produce, will allow managers to focus more
narrowly on engaging with workers and ensuring their department is
meeting customer needs, Lundgren said.
(Reporting by Nathan Layne; Editing by Leslie Adler and Lisa
Shumaker)
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