Wal-Mart Merchandise Strategy: Gambling With CMO?

"At the end of the day, it is a function of price and assortment," Schoewe said. "When we get the two right, that's when we are successful."

Of course, Wal-Mart also struggled after it decided to remove select merchandise from shelves as part of its "Project Impact." After complaints from customers, the company is in the process of restocking some of these items.

Target(TGT) has also been a growing issue, as shoppers who traded down to Wal-Mart amid the heart of the recession, may now be trading back up to Target's more fashion-forward apparel and home goods.

This is not to say that the heads of the new divisions are not capable, but Wal-Mart is sending a signal of uncertainty by not having someone in charge, says Craig Johnson, president of Customer Growth Partners. With a massive shakeup in management in recent months, investors are in need of some confidence, so it would only make sense that Wal-Mart finds a CMO sooner rather than later, Johnson says.

Still, the decision to hold off a hiring a new CMO might be the right move as Wal-Mart sorts out the mounting questions. "Do they try to relaunch fashionable items? Do they try to recapture the Target customer they gained in 2009 but lost in 2010?" Sozzi says.

Wal-Mart is still searching for its growth strategy, which is bigger than just a question of price or merchandise, Johnson says.

"The decision to refrain from hiring a CMO suggests that they are considering change, and want to pick the right person to lead that change," Sozzi says. "Hopefully, this happens in early 2011 so the CMO could have an impact on the year."

-- Written by Jeanine Poggi in New York.

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