Walmart CEO Doug McMillon will retire next year after more than a decade at the helm, capping a period when he reshaped the big-box retailer into a technology-driven powerhouse whose shares have consistently outperformed the broader market.
McMillon, 59, will be replaced by US division chief CEO John Furner, 51, a veteran with three decades at the company, Walmart said.
Walmart‘s shares fell 1.7% in morning trading, in part due to concerns McMillon’s decision to step down came sooner than anticipated, though his tenure at the time of his expected Jan. 31 retirement makes him one of the longest-serving CEOs in company history.
“Given that Mr. McMillon was unequivocally Walmart‘s best CEO since the company’s founder in Sam Walton … the announcement will likely cause some anxiety by shareholders, particularly since the change was a bit earlier-than-anticipated,” said Chuck Grom, an analyst with Gordon Haskett.
In a video on the company’s website, McMillon said, “this is the right time to retire because the company is in such great shape, and John is more than ready to lead this company through another set of transformations.”
Walmart said in a statement McMillon’s retirement was a planned transition.
McMillon took over from Mike Duke in February 2014, when the company was facing competition from online sales giant Amazon.com.
Since he took the job, Walmart‘s value has more than tripled to its current $817 billion as he ramped up eits commerce efforts. When he took over, the company’s global ecommerce sales had just surpassed $10 billion; in its most recent fiscal year ended in January, that figure had surpassed $120 billion.
“Walmart has performed very well under Doug’s tenure,” said Neil Saunders, Managing Director of Retail at GlobalData. “It has become a way more influential ecommerce player, has integrated new technologies to improve efficiency, and has pushed into new areas like retail media.”
McMillon, who joined Walmart in 1984 as an hourly associate, has served in leadership roles at all three Walmart divisions: U.S., International and Sam’s Club. He rose through the ranks to become CEO of Walmart in February 2014, replacing Mike Duke.
McMillon will continue as an adviser through Jan. 31, 2027. The Bentonville, Arkansas-based retailer’s stock has risen 323% since he took over, outperforming the S&P 500 index.
‘Powerhouse fuelled by technology’
The list of people who have held Walmart‘s top job since its 1962 founding is a short one; Furner will be only the sixth person to lead the company, with each of the previous CEOs lasting six years or more.
“Doug McMillon has been a terrific CEO, leading Walmart’s transformation into an even bigger and stronger retail powerhouse fueled by technology,” said Joseph Feldman, an analyst with Telsey Advisory Group. “John Furner is the logical choice to be the next CEO. He is a lifer at Walmart who started as an hourly associate in 1993, so he is a good cultural fit.”
The move is the latest in a string of leadership changes sweeping through retail as companies tackle tariff pressures, an uncertain economy and choppy consumer spending. Kohl’s, Kroger, and Target have named new CEOs this year.
Furner has been CEO of Walmart U.S. since 2019. He joined as an hourly associate around three decades ago, and has held leadership roles across merchandising, operations and sourcing, the company said. He previously served as president and CEO of Sam’s Club.
Walmart reports quarterly results next week.
Reuters
