In Focus

Jeanne Jackson & Walmart.com:
Getting Chicky With It

It used to be that a high-profile person with the last name Jackson was either a former President or the member of a famous familial singing group. But contrary to those now defunct Jacksons, (both have "expired" - the President literally, the band figuratively), there's a new Jackson making a name for herself. The new Chief Executive Officer of Walmart.com is Ms. Jeanne Jackson, and her terrific reputation will surely have the execs at Walmart singing to the tune of success in no time.

Born in Colorado, Jeanne Jackson graduated from the University of Colorado in 1974, and Harvard Business School in 1978. A CEO in retail commented that as hard as she worked (bartender at night, short-order cook by day), retail might be the field for her. She enrolled in a retail-training program with Federated Department Stores and away she went, embarking on a 22-year career.

I first discovered Ms. Jackson several months ago. As a Chick, my job is to follow The Gap, Inc (GPS). I had come to understand that the success brought to the catalogue and on-line sectors of The Gap, Old Navy and especially Banana Republic were the result of a newly hired, innovative management. So the credit for these successes goes to - you guessed it - Ms. Jackson! Although she humbly gives that credit to Mickey Drexler, CEO of The Gap, Inc, the fact is that when she took the helm she made things happen. And as the world turns, Jackson was eventually whisked away by Walmart.

It was only a matter of time before Walmart joined the wonderful world of technology and dot-coms. If you've been keeping abreast of the Chicks' articles, you're probably aware of our discussions about Bricks and Mortar companies Vs. On-line companies. Chick Karin and I even addressed specific examples of this. Some solid companies seem to expect that because they are a leader in their field that they have an automatic jump on the on-line scene. (See article: Amazon vs. Barnes & Noble.) Walmart.com is hoping to be able to ride on Walmart's coat tails. They describe it this way: "In short, at Walmart.com we're passionate about combining the best of two great worlds, Silicon Valley and Bentonville, in order to bring our customers what they want: a wide assortment of their favorite products, Every Day Low Prices, guaranteed satisfaction, friendly service, convenient hours (24 hours, 7 days a week, to be exact) and a great online shopping experience."

So what can make the difference for Walmart? What will make them conquer the trials and tribulations of the Barnes & Nobles of the world? I think it could be Jeanne Jackson. She took a dying Banana Republic and revived it. She knows what it takes to cross over to cyberspace and be successful. That's why she was the first one to come to mind when Walmart.com was a failing fledgling. "Jeanne was one of the first people we thought of when we started our search for the CEO position," James Breyer, managing partner of Accel, said. "She is an exceptional leader who will help us fully leverage the trusted Wal-Mart brand while creating an innovative shopping experience for both online and offline consumers."

Walmart.com may also prove to be just what the doctor ordered for Walmart's current woes as well. With Gross Margins at 21.52%, net margins of 3.38% and cash to long-term debt at a dismal -9.7, the trusty Walmart has been struggling. There are high hopes that the Internet will provide them with a much-needed boost. You can buy on-line anything you can buy in their stores, but you have the luxury of returning the items, if needed, to the physical store. A great way to avoid extra shipping charges! Plus, you can order everything from a grill to a toothbrush. The convenience and the familiarity of a brand you trust at the tip of your fingertips, or just around the corner.

Bottom line is, I think we can all count on Walmart sticking around. Add to the equation a new dot-com and new CEO named Jeanne Jackson, and the possibilities are virtually endless.