Key Takeaways
- Walmart CEO Doug McMillon is slated to retire at the end of January but spend the next year advising his replacement: John Furner, the CEO of Walmart’s U.S. operations.
- McMillon led Walmart through 11 years of rapid change, including a period of wage growth and the growth of e-commerce and delivery.
Walmart CEO Doug McMillon is retiring after more than a decade of guiding the company’s evolution—and watching its stock quadruple.
Walmart (WMT) on Friday said McMillon will retire at the end of January, but spend another year advising his successor: John Furner, a company veteran. McMillon presided over 11 years of immense change—Walmart went from a big-box store known for low wages and to a dominant e-commerce player with compensation that’s attracted attention from academics. Even the company’s name has evolved; it referred to itself as Wal-Mart Stores when announcing McMillon as CEO.
Investors have rewarded McMillon for increasing wages, modernizing the supply chain and developing a delivery business that’s popular with affluent Americans. Its shares rose more than 300% since McMillon became CEO on Feb. 1, 2014; the S&P 500 rose about 280% during that period. The shares, recently down 1%, have advanced more than 13% so far this year.
McMillon “leaves Walmart stronger, more innovative, and better aligned with our purpose to help people save money and live better,” Chairman Greg Penner said in a statement.
Why This News Matters for Investors
Walmart will rely on a new CEO as it adapts to a number of economic headwinds, including widespread tariffs, concerns about inflation and an anemic job market. While consumers are still spending, there are signs of stress and pullback, particularly among low-income households.
McMillon is slated to update investors during a conference call on third-quarter earnings next Thursday. The meeting will likely give investors a chance to hear about the company’s outlook and to hear from Furner. He’s spent the past six years as president and CEO of Walmart’s U.S. operations, and has led merchandising, operations and sourcing teams, Walmart said.
“As we enter a new retail era fueled by innovation and AI, our purpose and our people will continue to guide us,” Furner said in a Friday statement.
McMillon, who started at Walmart in 1984 as an hourly associate, is stepping back as the heady times at Walmart face headwinds, including tariffs on goods from many countries. The company has gained market share, particularly among households with six-figure incomes. But lower-income families are showing signs of increased caution with their pocketbooks in recent quarters with inflation stubborn and the job market slowing.
The timing of the change “underscores Walmart’s confidence in its strong position and the current momentum of the business,” Bank of America analysts said Friday. “We would not expect to see meaningful changes in company strategy.”