Walmart CEO Doug McMillon will retire next year after a decade of major tech-driven expansion; U.S. chief John Furner named successor.
Walmart CEO Doug McMillon will retire in 2025 after leading the company through a decade of major transformation (Photo: File)
WASHINGTON: 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 U.S. division chief CEO John Furner, 51, a veteran with three decades at the company, Walmart said. Walmart's shares cut earlier losses to trade down about 0.0%. 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.
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 playing catch-up to online sales giant Amazon.com that was quickly capturing a lion's share of the booming consumer demand for ecommerce. McMillon tapped into the company's vast store footprint to speed up deliveries, incorporate automation technology at warehouses, and expanded its marketplace and advertising business to boost income.
Since he took the job, Walmart's value has more than tripled to its current $817 billion as he ramped up ecommerce efforts. When he took over, the company's global ecommerce sales had just surpassed $10 billion; in its most recent fiscal year that 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 Global Data, "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 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. 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.
