Walmart Chief Executive Doug McMillon will step down from his post in January, handing over the reins to his longtime deputy.
The 59-year-old is stepping down after more than a decade at the helm of the world's biggest retailer, a period in which he successfully expanded its online operations while cutting riskier international divisions.
His successor will be John Furner, a lifelong Walmart employee who rose from the floor to head the company's U.S. business.
The change comes as the retailer has seen strong growth despite uncertainty caused by new tariffs and signs of a slowdown in consumer spending.
Walmart Chairman Greg Penner said Mr. McMillon left the company in a stronger position than when he took over in 2014, when the rise of e-commerce put the firm on the defensive.
“Doug has led a comprehensive transformation by investing in our partners, developing our digital and e-commerce capabilities, and modernizing our supply chain, resulting in sustainable and reliable financial performance,” he said in a statement announcing the plans.
Walmart, which had revenue of about $670 billion last year, has a large global presence with more than 10,000 stores in 19 countries.
But under McMillon's leadership, Walmart acted like a “small business” — quickly experimenting as it tried to find its place in the world of online retail, said Neil Saunders, managing director of consultancy GlobalData.
Success has been mixed. For example, in 2023, the company sold men's clothing brand Bonobos at a loss just six years after purchasing it.
But online shopping now represents a key growth driver for the firm.
“I think he will be remembered as a transformational leader,” Mr Saunders said. “He took a very good business and made it even better, which is a very difficult thing to do.”
Mr. McMillon will remain an adviser to Mr. Furner and will continue to serve on the company's board of directors until June 2026 to assist with the transition, the company said.
Mr. McMillon said in a statement that he was “honored” to serve as chief executive, while praising Mr. Furner, 51, as “uniquely qualified to lead the company through its next AI-powered transformation.”
Mr. Furner has led Walmart's U.S. business since 2019, helping it navigate supply chain disruptions caused by the pandemic and subsequent price surges.
The business has also successfully weathered steep tariff changes this year, using its scale to keep prices down and profit from rivals. U.S. sales rose nearly 5% in the most recent quarter.
He had long been seen as a likely successor to Mr. McMillon.
The company's shares, which have risen about 14% this year, fell about 2% in opening trading as investors reacted to the news. but later backed off a bit.
