After over a decade in the position, Walmart Inc. CEO and President Doug McMillon will retire Jan. 31.
Current Walmart U.S. President and CEO John Furner has been elected by the board of directors to succeed McMillon effective Feb. 1, according to a Friday press release. Furner has also been elected to the board effective immediately and the company plans to announce his successor before the end of fiscal year 2026.
McMillon will remain on the board until June to support the transition and serve as an adviser to Furner through January 2027.
“I’ve worked with John for more than 20 years,” McMillon said in a statement. “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. 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.”
Furner has served as the head of Walmart U.S. since 2019 and began his career at Walmart in 1993. McMillon joined the retailer in 1984 as an hourly associate and became Walmart Inc. CEO in 2014.
Starting Feb. 1, McMillon will receive an annual salary of $1.5 million through Jan. 31 2027, according to a U.S. Securities and Exchange Commission filing Friday.
Industry experts largely view McMillon’s leadership as a success.
“Doug McMillon has been a terrific CEO, leading Walmart’s transformation into an even bigger and stronger retail and e-commerce powerhouse fueled by technology,” Telsey Advisory Group analysts led by Joe Feldman said in an emailed note Friday. “All this was done while staying true to Walmart’s core values and every day low price philosophy.”
In Furner, Walmart promotes a leader with deep experience at the company. Similar to McMillon, the executive began his career at Walmart as an hourly store associate.
“Fortunately for Walmart, it has a strong leader waiting in the wings in the shape of John Furner,” GlobalData Managing Director Neil Saunders said in emailed comments. “Furner has demonstrated his capabilities by overseeing the success of the U.S. business – Walmart’s biggest operational entity. He also understands the philosophy of Walmart and how to use this for commercial advantage.”
This move means two of the largest retailers in the U.S. have now looked toward internal expertise to steward the companies forward next year.
Target in August announced that CEO Brian Cornell would step down in February and be succeeded by company veteran Michael Fiddelke.
Fiddelke joined Target as an intern in 2003 and has held many leadership roles over the course of more than 20 years. He currently serves as the company’s chief operating officer.
But the retailers are in vastly different performing positions.
Target is undergoing a major strategic shift led by Fiddelke following falling sales and store traffic. But Walmart has continued to thrive, with Telsey analysts noting its “relative stability” amid an uncertain consumer and business environment.
The executive change at Walmart should not be a sign of concern, according to UBS analyst Michael Lasser.
“Importantly, we don’t think this says anything about the state of the business,” Lasser said in an emailed note Friday. “Instead, we believe that this is more of a sign that the company believes its next CEO will have the wind at his back as it navigates through an ever-changing sector.”