Walmart's CEO Doug McMillon will retire next year, the retailer announced on Friday, after almost 12 years at the helm that saw him turn the nation's largest retailer into a tech-powered giant.
John Furner, 51, a longtime insider and head of Walmart's U.S. operations, will take over, the company said. Shares fell 3% immediately in premarket trading after the news, which was unexpected.
McMillon, 59, who has been heading the retail bellwether since 2014, will retire in January next year, but continue to be employed as an adviser of the company through Jan. 31, 2027, Walmart said.
The Bentonville, Arkansas-based retailer's stock has risen 323% since he took over, outperforming the S&P 500 index.
During McMillon's tenure as CEO, he invested heavily in its workers by increasing wages, expanding parental leave and launching a program for certificates or degrees for employees seeking education opportunities. Walmart has also lowered its prices and embraced technology like artificial intelligence to improve customer and worker experiences.
"Over more than a decade as CEO, Doug led a comprehensive transformation by investing in our associates, advancing our digital and e-commerce capabilities, and modernizing our supply chain, resulting in sustained, robust financial performance," said Walmart Chair Doug Penner, who is the son-in-law of the Walmart's late founder Sam Walton.
"He leaves Walmart stronger, more innovative, and better aligned with our purpose to help people save money and live better."
Since McMillon became CEO, annual revenue has grown from $485.7 billion to $681 billion in its latest fiscal year. Its stock was hovering around $25; now it is over $102 per share. The company reports quarterly results next week.
"Doug McMillon has been a terrific CEO, leading Walmart's transformation into an even bigger and stronger retail powerhouse fueled by technology," said Joseph Feldman, an analyst with Telsey Advisory Group.
"John Furner is the logical choice to be the next CEO. He is a lifer at Walmart who started as an hourly associate in 1993, so he is a good cultural fit," he added.
The move is the latest in a string of leadership changes sweeping through the retail sector as companies tackle tariff pressures, an uncertain economy and choppy consumer spending backdrop. Kohl's, Kroger and Target are among retailers that have named new CEOs this year.
Furner joined Walmart as an hourly associate around three decades ago, and has held leadership roles across merchandising, operations and sourcing, the company said. He has also served as president and CEO of Sam's Club.
