Walmart’s longtime CEO, Doug McMillon, will step down Jan. 31, the company said Friday. John Furner, who has been president and CEO of Walmart’s U.S. division, will become the retailer’s new CEO.

McMillon will retire from his position in early 2026 but will remain on the board through the next annual shareholders meeting.

Like McMillon, Furner has worked at Walmart his entire career and started as an hourly worker. He is an Arkansas native whose father also worked at the retailer.

“John understands every dimension of our business — from the sales floor to global strategy,” Greg Penner, chair of Walmart, said in a statement.

When Furner, 51, takes the reins in February, he will oversee one of the largest workforces in the United States and be responsible for navigating the retailer into the age of artificial intelligence. He will also face tariffs that are pressuring the retailer’s global supply chains and a customer base that is facing a nationwide affordability crisis.

Walmart has more than 4,600 stores in the U.S., which Furner has run since 2019. Walmart’s U.S. stores have posted consistent growth during his tenure, even as many other retailers struggled to adjust to the changing consumer landscape.

“He’s gone through the pandemic; he’s gone through supply chain challenges; he’s gone through the first six months of evolving tariff policy,” David Silverman, a retail analyst at Fitch Ratings, said.

McMillon led Walmart for almost 12 years, double the average tenure for a retail CEO.

A decade ago, brick-and-mortar retailers faced the existential question about what to do with their stores as pure e-commerce players like Amazon encroached on their market share. McMillon helped Walmart become more technology-focused while leveraging its massive store base. He helped improve the retailer’s relationship with its employees by providing more training and increasing wages, particularly at the store manager level.

The company’s sales, profits and market share have increased during his time.

Walmart’s stock dropped about 2% in early trading Friday.

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This article originally appeared in The New York Times.

By Jordyn Holman and Kailyn Rhone/Anna Moneymaker
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