As the firm navigates new difficulties like artificial intelligence and international tariffs, Walmart announced on Friday that CEO Doug McMillon will retire next year, having led the largest retailer in the world for more than ten years.
John Furner, 51, the top CEO of the U.S. division and a veteran with thirty years at the corporation, will succeed McMillon, 59.
Early trading saw a 2.5% decline in Walmart's stock, partly as a result of worries that McMillon's resignation was announced earlier than expected.
McMillon began working at Walmart as an hourly associate in 1984 and has held senior positions in the company's three divisions: Sam's Club, International, and U.S. In February 2014, he replaced Mike Duke as CEO of Walmart after rising through the ranks.
Walmart announced on Friday that McMillon will retire in January of next year, but he will remain an adviser to the firm until January 31, 2027.
Since he took charge, the stock of the Bentonville, Arkansas based retailer has increased 323%, surpassing the S&P 500 index.
"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 at Gordon Haskett.
Furner will be just the sixth CEO to hold the position since Walmart's establishment in 1962; all of the previous CEOs served for at least six years.
According to Telsey Advisory Group analyst Joseph Feldman, "Doug McMillon has been a terrific CEO, leading Walmart's transformation into an even bigger and stronger retail powerhouse fueled by technology."
It seems sense to appoint John Furner as the next CEO. He is a fantastic cultural fit because he began working at Walmart as an hourly associate in 1993 and has been there for a long time," he continued.
The action is the most recent in a series of leadership changes that the retail industry has seen as businesses deal with tariff pressures, an unstable economy, and volatile consumer spending. Retailers that have appointed new CEOs this year include Kohl's, Kroger, and Target.
Since 2019, Furner has served as Walmart U.S.'s CEO. According to the firm, he started out as an hourly employee at Walmart about thirty years ago and has since held leadership positions in sourcing, operations, and merchandising.
Additionally, he was Sam's Club's president and CEO in the past. Next week, the corporation will release its quarterly results for the third quarter.
