John Furner will be the CEO for Walmart’s AI era
After more than a decade as president and CEO of Walmart, Doug McMillon is retiring early next year. John Furner, president and CEO of Walmart’s U.S. division since 2019 and an employee of the company since being an hourly associate in 1993, will lead the company globally beginning in February.
McMillon will likely be known for transforming Walmart into an e-commerce leader, complementing its already powerful store network. Since taking the role in 2014, McMillon led the company as it introduced curbside pickup and delivery services as well as other new technology in stores; kept stores and supply chains operational during the pandemic; invested heavily in remodels, new stores and high-tech distribution centers; raised store salaries; and created training programs for upward growth. Walmart’s e-commerce business has grown by double digits in recent years.
“One of the things Doug did was return the company to its roots, which was very much an operations-led organization supported by great merchandising, great marketing efforts,” said Matt Fifer, a former Walmart executive who worked at the company from 1993-2005 and is now founder of industry networking platforms Conversations On Retail and Winning With Walmart. “If Doug hadn’t done the work he did early in his tenure, the company wouldn’t have been nearly as well-positioned to take on those big issues,” like the pandemic, tariffs and, now, AI.
McMillon laid the foundation for Walmart’s AI era, expanding its tech leadership to center around AI and launching AI agents or tools for customers, employees, suppliers and advertisers. Given that AI is still in the early days of how it’s deployed within organizations, Furner’s tenure will at least initially be defined by how the company evolves from testing and experimenting with AI to implementing it throughout the company. Additionally, he’ll be tasked with maintaining growth despite fluctuating tariffs and a challenging consumer environment.
Furner has held leadership roles across merchandising, operations and sourcing, plus he served as president and CEO of Sam’s Club from 2017-2019 and as svp, chief merchandising officer and chief marketing officer of Walmart China from 2013-2015.
Business as usual
Given that the incoming CEO has also been with the company for decades, several former Walmart executives who spoke with Modern Retail said they don’t expect major changes in how the company operates.
McMillon will also remain on the company’s board of directors until the company’s next shareholders meeting in 2026 and stay on as an advisor to Furner through Jan. 31, 2027.
“For the near term, the biggest change that lies in front is continuing to evolve the role that technology plays as an enabler of the business,” said Scott Benedict of Benedict Enterprises, a retail consultant and former buyer for Walmart and other retailers.
Benedict said Furner’s biggest initial challenge will be defining how roles like marketing and inventory planning will change as Walmart implements AI-powered tools, “because it’s such an emerging story.”
Fifer said he expects more rapid experimentation and iteration in the AI space. “I think Doug’s era will be marked by laying the groundwork and a really, really strong foundation that AI was built upon,” he said.
Walmart has been using AI to transform both backend operations, like inventory management or data analysis for suppliers, and the consumer experience, such as through the Sparky agent in the Walmart app.
“There’s a lot of judgment in retail and decision-making. And we’re in a very dynamic industry,” Furner said at the Fortune Brainstorm Tech conference in September, according to Business Insider. “We think this next phase of physical AI in combination with Gen AI is going to be really helpful.”
Fifer said he doesn’t expect any radical changes to the company’s strategy moving forward, but that he does expect AI to transform positions throughout the company.
“You’re going to see a major transformation of headquarters staff and roles and responsibilities — maybe not necessarily a headcount reduction, but I think all of those jobs will absolutely change,” Fifer said.
An operational leader
Analysts and former executives point to Furner’s expertise in operational excellence, especially in how his business segments have advanced in supply chain, infrastructure, automation, logistics and AI.
“Sam’s Club finally started to get some traction when John was the CEO of Sam’s Club,” said Karen Kelso, a vp at Kantar who covers Walmart, adding that Furner helped the club retailer hone in on using membership data to personalize the experience and to help it make decisions in areas such as merchandising and site-selection.
He also led Walmart’s U.S. stores through the pandemic, when the retailer had to quickly advance its pickup and delivery technology. In 2020, Walmart accelerated the launch of two-hour delivery to nearly 2,000 stores. “He has a lot of experience in turning around a challenging environment and getting the operational factors under control,” Kelso said.
Kelso, however, questions whether Furner will match the interpersonal skills of McMillon, who is often praised for getting to know associates on a personal level.
“Doug has always been very much leading by relating to others,” Kelso said. “The associates love him because he’s very interested in them. He talks to them. He engaged with them. He’s very much of the people. I get the sense John is really a lot more about, ‘Let’s just get stuff done,’ or, ‘We’ve got these things to do.”
However, Benedict, who worked with Furner at Sam’s Club, said Furner understands store associates and other employees by having had a wide range of experiences at the company and starting out in the field.
“His ability to relate to a cashier and then talk to a fellow CEO — being able to relate to people and set expectations and hold them accountable — is the thing that stands out in my interactions with him,” Benedict said.