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Wal-Mart CEO steps down
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January 14, 2000: 10:44 a.m. ET
Glass to remain on board for at least a year; Scott appointed successor
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NEW YORK (CNNfn) - David Glass, the man who helped transform Wal-Mart Stores Inc. from a regional discount chain into the world's largest retailer, announced Friday he is stepping down as the company's president and chief executive officer effective immediately.
Glass, 64, said he intends to remain at Wal-Mart (WMT) full-time for at least the next year as chairman of the company board's executive committee.
Lee Scott, 50, who was appointed Wal-Mart's chief operating officer and vice chairman just last year, immediately was named to assume Glass' responsibilities as CEO and president.
"This has been expected for a year-and-a-half now," said Richard Church, an analyst with Salomon Smith Barney. "Lee Scott has been with the company, he's very well regarded by the street. This is not surprising and there will be no changes in company strategy."
Wal-Mart Chairman Rob Walton praised Glass for establishing new business lines, embracing technology and spearheading international growth.
"We have no doubt that the same collaborative culture which has always driven the success of our company and served our leaders so well will also help make Lee Scott successful in his new role," Walton said.
Shares of Wal-Mart, a component of the Dow Jones industrial average, inched up 1/8 to 65-1/4 in early trading Friday.
From regional chain to world presence
Glass succeeded Wal-Mart founder Sam Walton as the company's CEO in 1988 at a time when the discount chain was still developing its "superstore" concept.
Glass expanded the company's size and scope dramatically, rolling out the still-young Sam's Wholesale Club stores across the country, while putting its trademark Wal-Mart stores in all 50 states and several overseas markets.
During his tenure, the company's revenue grew to an estimated $165 billion in the fiscal year ending Jan. 31 from $16 billion.
Glass increased Wal-Mart's revenue more than nine-fold during his 12-year tenure as CEO.
Glass also helped develop the "superstore" concept, opening mammoth stores across the U.S. that offered everything from car batteries to crackers. Most of these stores are now open 24-hours a day.
He also shepherded the company onto the Internet, albeit at too slow a pace in the eyes of many analysts. Wal-Mart launched a revamped site at the beginning of the year and announced plans just six days later to take the online operation public as an independent company.
Wal-Mart currently operates more than 2,485 stores and 456 Sam's Clubs in the United States and nearly 1,000 more in country's stretching from Argentina to Korea.
Scott is credited with helping develop Wal-Mart's distribution network during his 24-year tenure with the company and also played a key role in reducing inventory levels during the last five years.
Since last year, Scott also has served as CEO of the Wal-Mart Stores division, giving him oversight of operation and merchandising. 
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AOL, Wal - Mart in Net pact - Dec. 16 , 1999
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