‘This is the right time to retire’: Walmart CEO Doug McMillon steps down. Retail giant names new boss

There’s a new sheriff in Bentonville.

Today, Walmart announced that John Furner will become the company’s new CEO and president, effective February 1 next year, succeeding longtime boss Doug McMillon, who is retiring. 

McMillon has been at the helm of the retail giant since 2014. Prior to becoming CEO, he led Walmart’s international division for four years, after leading Sam’s Club, a Walmart subsidiary, between 2005 and 2009.

“Serving as Walmart’s CEO has been a great honor and I’m thankful to our Board and the Walton family for the opportunity,” McMillon said in a statement Friday.

Why is McMillon retiring?

“This is the right time to retire because the company’s in such great shape, and John is more than ready to lead this company through another set of transformations,” McMillon said in a separate video message, filmed alongside Furner.

Walmart’s team also tells Fast Company that previous CEO transitions have followed a similar pattern.

Specifically, they were announced in November and followed a sequence: a successor was named, the transitions started at the end of the year, and the outgoing CEO remained on the board for a period of time in an advisory capacity.

McMillon said he believes the company will be in good hands when Furner takes the reins. 

“I’ve worked with John for more than 20 years. His love for our associates and this company runs deep,” McMillon said. “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. I know that our future is bright with his leadership.”

A tenure marked by growth and technological change

Walmart has made notable strides under McMillon’s tenure, including investments in the company’s workforce by increasing wages and expanding employee programs, and more recently, embracing AI by partnering with OpenAI to allow new ways for customers to shop and interact with the brand. 

It also went under a small but ambitious rebrand this year, the first in decades.

Furner is currently the president and CEO of Walmart U.S., a role he’s held since 2019, and is responsible for 1.5 million employees and roughly 4,600 stores.

He started at Walmart as an hourly associate in 1993, working his way up the corporate ladder.

“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 statement. 

Walmart’s stock fell around 3% during premarket trading on Friday after the news was released. Year-to-date, shares are up around 14%, and they’re up 104% over the past five years.

Walmart will is expected to release its latest earnings numbers on November 20.

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