Walmart picks Mitchell Slape to rejig struggling Massmart

America’s Walmart Inc., said it has appointed Mitchell Slape as the chief executive officer of it’s South African unit, Massmart Holdings.

Massmart has been struggling to keep up with rising costnof doing business in Southern Africa and Slape’s appointment is planned to rejig the company.

His appointment to replace Guy Hayward comes as Massmart said earnings may drop as much as 50% in the first five months of the year, sending its shares to a 10-year low.

“It’s quite a surprise that Walmart sent someone over considering it hasn’t been too closely involved in Massmart’s strategy,” said Daniel Dias, a Johannesburg-based analyst for Arqaam Capital. “The earnings are a concern.”

Walmart noted that Slape will resume for duty as soon as he gets his visa.

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