Walmart on Friday said CEO Doug McMillon, who started his career with the retailer as an hourly worker and who has led the company since 2014, will retire in January.
McMillon, 59, will step down as CEO on Jan. 31 but remain on the retailer’s board of directors until its annual shareholders’ meeting. John Furner, who has served as president and CEO of Walmart U.S. since 2019, will take over as chief executive on Feb. 1.
McMillon oversaw an expansion of tech-based initiatives at Walmart, such as investing in e-commerce and artificial intelligence, while also increasing wages and benefits for Walmart’s 2.1 million workers. Under his tenure, Walmart’s shares surged more than 300%, buoyed by rising sales and profitability.
“McMillon is very highly regarded by investors and helped the company navigate a volatile retail landscape over the last ~12 years as CEO,” Adam Crisafulli, an analyst with Vital Knowledge, said in a research note, adding that his retirement is “somewhat surprising.”
Since McMillon became CEO in February 2014, Walmart’s annual revenue has grown from nearly $486 billion to $681 billion in its latest fiscal year.
“People thought he would stay on longer given how well the company is performing and his relatively young age,” Crisafulli noted.
McMillon had told the Wall Street Journal in March 2023 that he pledged to remain in his role for another three years as the company searched for a successor. McMillon has spent his entire career at Walmart, starting in 1984 as an associate who picked orders and unloaded trailers in a warehouse, according to his company bio.
Furner, 51, has proved to be a “strong leader” as he managed Walmart’s U.S. business, said GlobalData managing director Neil Saunders in a research note. But, he added, McMillon’s retirement “will send a small shockwave through Walmart, simply because he has been an excellent leader and steward of the company, he said.
In a statement, McMillon said he’s worked with Furner for more than 20 years. “His love for our associates and this company runs deep. 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,” McMillon said in the statement.
McMillon will serve as an adviser to Furner through Jan. 31, 2027, Walmart said.
The retailer’s shares slipped $2.38, or 2.3%, to $100.19 in early morning trading.
