Walmart Bets on Internal Leadership to Navigate Retail Challenges

Walmart Inc. (WMT) has named John Furner, a 30-year company veteran, as its next chief executive officer, succeeding Doug McMillion, who will retire at the end of January 2026. Effective February 1, 2026, Furner-currently president and CEO of Walmart U.S.-will lead the Fortune 500's top company, which operates over 10,750 stores and clubs globally and generated $681 billion in revenue in fiscal 2025. McMillon, who joined Walmart in 1984 as an hourly worker and became CEO in 2014, will remain on the board until June 2026 and serve as an advisor to Furner through fiscal 2027.

Furner, 51, began his career at Walmart in 1993 as an hourly associate in Bentonville, Arkansas. He has held leadership roles across merchandising, operations, and sourcing, and previously led Sam's Club U.S. and Walmart China's marketing. As CEO of Walmart U.S.-the company's largest segment, accounting for 69% of first-half 2026 net sales-he oversaw a business with more than 4,600 stores and generated $120.9 billion in Q2 revenue. His promotion underscores Walmart's commitment to internal leadership, with Chairman Greg Penner calling him "the right leader to guide Walmart into our next chapter of growth and transformation" according to company statements.

McMillon's tenure saw Walmart's stock rise over 400% and its market capitalization grow by $576 billion. He oversaw a digital transformation, including same-day delivery and e-commerce expansion, helping the company attract a broad customer base across income levels. However, the transition comes amid mounting challenges, including rising tariffs, affordability pressures, and a government shutdown impacting SNAP benefits-a concern echoed by companies like McDonald's and Tyson Foods according to industry reports.

Furner inherits a company at the forefront of AI integration, with McMillon stating the technology will "change every one of the company's 2 million-plus jobs" according to CEO statements. The new CEO will also navigate a complex retail landscape, where Walmart's e-commerce sales surged in October amid generative AI initiatives and heavy promotions. Analysts will watch closely as the company reports Q3 earnings, with investors assessing how Furner plans to sustain Walmart's growth trajectory.

The leadership shift follows a pattern of internal succession, with McMillon himself rising from an hourly worker to CEO. Walmart plans to announce Furner's successor for the U.S. segment before fiscal 2026 ends.