Additional Coverage:
- Meet Walmart’s new CEO, John Furner: Once an hourly worker, he’ll helm the top company in the Fortune 500 (fortune.com)
From Stocker to CEO: John Furner to Lead Walmart into a New Era
Bentonville, AR – Walmart, the nation’s largest company by revenue, is set to embark on its next chapter under the leadership of incoming chief executive John Furner. Furner, 51, a remarkable success story within the retail giant, began his journey as an hourly employee stocking shelves, and will now guide the company through its future endeavors.
The announcement comes as current CEO Doug McMillon prepares to retire on January 31st, concluding a decade at the helm of the Fortune 500’s top-ranked company.
Starting in February, Furner will oversee Walmart’s vast operations, which include 2.1 million employees and nearly 11,000 stores across 19 countries. His impressive career trajectory began in a Bentonville garden center, a humble start for the University of Arkansas marketing management graduate.
He steadily climbed the corporate ladder, holding positions such as store manager, district manager, buyer, divisional general manager, and VP of global sourcing, even spending two years in Shenzhen with Walmart China. Most recently, Furner served as president and CEO of both Sam’s Club and Walmart U.S.
Greg Penner, Walmart’s chairman of the board, expressed confidence in Furner, stating, “John understands every dimension of our business-from the sales floor to global strategy. He has proven he can deliver results while living our values.” McMillon, who has worked closely with Furner for two decades, also lauded his successor, describing him as “a merchant, an operator, an innovator and a builder” who deeply understands the business and loves the company.
Furner’s Commitment to Employees
Furner’s leadership style is notably influenced by his early experiences as a store associate. He has championed significant changes to Walmart’s compensation structure, aiming to boost morale and retention among its workforce.
Under his tenure, top-performing store managers now receive comprehensive pay packages ranging from $420,000 to $620,000 annually. This includes a base salary increase to between $130,000 and $160,000 – more than double the median American worker’s salary – supplemented by substantial stock grants and annual bonuses designed to foster a sense of ownership.
Additionally, a bonus program for store employees has been reinstated, potentially offering qualifying individuals up to $1,000 per year based on their years of service.
Even amidst concerns about AI’s impact on employment, Furner has affirmed that Walmart’s employee count will remain stable over the next five years, with any displaced jobs being replaced by new roles within the company. “We’re extending people’s career and those jobs pay better.
The attrition rates are really low,” Furner stated at the Brainstorm Tech conference in September. These initiatives contributed to Walmart securing a spot in Fortune’s Best Large Workplaces in retail for 2024.
The Philosophy Behind Furner’s Leadership
Furner’s management philosophy is rooted in his family background and early life lessons. Working on his grandfather’s farm as a child instilled in him the value of hard work.
“I learned with him that the animals don’t take Sundays and Saturdays and Wednesdays off,” he recounted, emphasizing the constant dedication required. His grandfather, a product of the Great Depression, also taught him the importance of hands-on problem-solving, a trait Furner applies to business challenges.
“In a business, there’s so many unique situations that just land on you that there may not be a clear answer, but between your team, your resources, American ingenuity and creativity-There’s probably a way to solve it,” he explained.
This dedication and creative problem-solving proved invaluable in his previous high-profile roles. As president and CEO of Sam’s Club, Furner oversaw 11 consecutive quarters of positive growth, strategically competing with Costco by streamlining operations and closing underperforming stores.
During the unprecedented COVID-19 pandemic, Furner played a crucial role in strengthening Walmart’s supply chain and fulfillment centers. The company re-prioritized its business, shifting focus to its grocery operations to meet the surging demand during what he termed the “stock-up phase.” Subsequently, Walmart heavily invested in fulfillment centers and expanded its pick-up and delivery services to adapt to the “work from home” era and the explosion of online purchases.
These strategic adjustments led to significant growth in net sales in both 2020 and 2021. In 2021 alone, Walmart’s U.S. business saw an impressive $29 billion increase in net sales, with e-commerce operations growing by 79%.
John Furner’s ascent to the top leadership position at Walmart is a testament to his dedication, strategic vision, and commitment to both the company and its vast workforce, positioning him to guide the retail giant into a promising future.