New York — Doug McMillon, who has led Walmart as CEO for over ten years, is set to step down in 2026, the company announced Friday. John Furner, currently president and CEO of Walmart U.S., will take over the reins starting February 1, 2026.

The transition occurs during a challenging period for the retail sector. Industry dynamics have shifted drastically due to rising tariffs and shifting consumer sentiment, which have impacted earnings for many retailers. However, Walmart has maneuvered through these challenges under McMillon’s leadership, benefiting from its strong supply chain capabilities and dominance in the grocery sector. The retailer has managed to maintain low prices on essential goods, attracting a diverse customer base, including an increasing number of high-income households.

Since McMillon took office, Walmart has transformed into a formidable competitor in the e-commerce arena, effectively countering rivals like Amazon. The introduction and expansion of the Walmart+ subscription service were pivotal in enhancing the company’s online presence and customer engagement.

McMillon, who began his career as a store associate, has played a crucial role in revitalizing Walmart, overseeing significant growth in stock value, which has tripled since he assumed the CEO position in 2014. His tenure includes leadership roles across various aspects of the company, including Sam’s Club and international operations.

Greg Penner, Chairman of Walmart, praised McMillon’s contributions, acknowledging his key role in modernizing Walmart’s operations and enhancing digital capabilities, which have led to sustained financial success. Penner highlighted that McMillon was uniquely positioned to guide the company through its transformation.

Furner, who ascended through the ranks starting as an hourly associate in 1993, has been at the helm of Walmart U.S. since 2019. He has extensive experience in various roles, including positions in Sam’s Club and Walmart China. Management has recognized his efforts in associate development and operational excellence, which will be pivotal as he transitions to CEO.

As part of the leadership shift, McMillon will remain involved with the company, serving on the board until next June and acting as an advisor to Furner through the fiscal year 2027. An announcement regarding Furner’s successor in leading Walmart U.S. is expected soon.

This announcement marks a significant change for one of the world’s largest retailers, reflecting both challenges and opportunities as the industry continues to evolve.