Executives Exit at Wal-Mart In China

BEIJING—Wal-Mart Stores Inc. said the CEO of its China operations and its senior vice president for human resources there have left the company, which is facing unprecedented regulatory challenges in a key growth market.

Ed Chan, who served as president and chief executive of Wal-Mart China since 2006, left the company Monday for personal reasons, a company statement said.

Clara Wong, senior vice president Wal-Mart China's human resources division, has also stepped down.
Scott Price, president and chief executive of Wal-Mart Asia, has been appointed to serve as interim leader of Wal-Mart China. Mr. Price will maintain his role as president and chief executive of the Asia division, Wal-Mart spokesman Anthony Rose said, declining to comment further.

The leadership shake-ups are the latest management shifts within Wal-Mart's China operations. In May, its chief financial officer and chief operating officer for China resigned.

Last week, the Bentonville, Ark., company said two Wal-Mart employees were arrested and 35 others were detained in the Chinese metropolis of Chongqing over local-government allegations the retailer fraudulently labeled ordinary pork as a more expensive organic type.

On Wednesday, a Chongqing government spokesman cited a report in the city's official newspaper that said of the 35 held, 25 were still being detained, meaning authorities would have to release or charge them in coming days. Seven other people were under house detention and three had been released on bail.
Wal-Mart has said it is cooperating with continuing investigations. It temporarily closed 13 of its stores in Chongqing after the government ordered they be closed for 15 days and fined Wal-Mart 3.65 million yuan (about $575,000). Chongqing authorities alleged the company sold mislabeled pork for nearly two years.

Wal-Mart said in March it had $7.5 billion in revenue last year from the 328 China stores then operating, a number that has since grown to nearly 350.