Walmart Inc. CEO to retire; successor named
The longtime chief executive of Walmart Inc. is stepping down.
In a move that caught the industry by surprise, Walmart said that its CEO, Doug McMillon, 59, will retire on Jan. 31. He will be succeeded by John Furner, 51, CEO of Walmart U.S., on Feb. 1, who has also been elected to the company’s board, effective immediately.
McMillon, who is credited with turning Walmart into a tech-driven retail powerhouse, has served as president and CEO of the company since February 2014. Under his watch, Walmart's shares have surged more than 300% amid rising sales and profitability, with annual revenue growing from nearly $486 billion to $681 billion in its latest fiscal year. McMillon will remain on the Walmart board until the next annual shareholders’ meeting and help ensure a smooth transition.
“Over more than a decade as CEO, Doug led a comprehensive transformation by investing in our associates, advancing our digital and e-commerce capabilities, and modernizing our supply chain, resulting in sustained, robust financial performance," said Walmart chairman Doug Penner, who is the son-in-law of Sam Walton, the company's late founder. "He leaves Walmart stronger, more innovative, and better aligned with our purpose to help people save money and live better.”
Furner has served as president and CEO of Walmart U.S. since February 2019, overseeing the company’s largest operating segment and its more than 4,600 stores. He started at Walmart career as an hourly associate in 1993 and has held leadership roles across merchandising, operations and sourcing. He also worked in multiple countries and served as president and CEO of Sam’s Club U.S.
Furner has proved to be a "strong leader" in managing Walmart's U.S. business, said GlobalData managing director Neil Saunders in a research note, reported CBS News. But McMillon's retirement will send a small shockwave through Walmart, simply because he has been an excellent leader and steward of the company, he added.
The company plans to make an announcement on Furner’s successor as CEO of Walmart U.S. before the end of its current fiscal year.
“John Furner is the right leader to guide Walmart into our next chapter of growth and transformation,” said Penner. “After starting as an hourly associate and being with us for over 30 years in a variety of leadership roles across all three of our operating segments, John understands every dimension of our business – from the sales floor to global strategy. He has proven that he can deliver results while living our values. John’s six-year leadership of our Walmart U.S. business during a time of rapid change, marked by digital acceleration and strong associate engagement, has positioned us for continued success."
In a statement, McMillon expressed his support for his successor, noting that he has worked with Furner for more than 20 years.
"His love for our associates and this company runs deep," McMillon said. "His curiosity and digital acumen combined with a deep commitment to our people and culture will enable him to take us to the next level. He’s uniquely capable of leading the company through this next AI-driven transformation. He’s a merchant, an operator, an innovator, and a builder. I know that our future is bright with his leadership.”
READ MORE: Expert weighs in on retirement of Walmart Inc. CEO