By Siddharth Cavale
-In 2020, as COVID-19 raged, John Furner, then head of Walmart’s largest U.S. division, consulted with colleagues in China and relied on his pandemic playbook to quickly adjust inventory forecasts and fulfillment operations to get ahead of panic buying.
Furner, a Walmart worker who grew up in Arkansas, where the retailer is based, had lived in China for about two years. China, ground zero of the pandemic, had begun retooling supply chains and was months ahead of the United States in making decisions. Furner leveraged that experience to understand what customers would need, he told reporters at the time.
When he takes the top job at Walmart on February 1, his collaborative leadership style and deep knowledge of the company will be put to the test as he steers the company through tough economic times, with tariffs putting pressure on margins and shareholders clamoring to see returns on the retailer’s AI investments.
“The business is operating in a difficult macro and competitive climate, especially with tariffs, price pressures and changes in consumer behavior,” said Matt Prescott, president of the nonprofit shareholder activist group The Accountability Board, which is a Walmart investor. “We hope he can rise to the challenge.”
FURNER’S MANDATE IS CLEAR
Walmart had a good run under CEO Doug McMillon. Profits grew 21% and the stock quadrupled as McMillon transformed the big-box retailer into a technology-driven powerhouse during his 13 years in charge. This year is no exception as shoppers have flocked to its stores and websites to purchase cheaper products from the company’s wide variety of products.
However, Furner has long been tipped as his successor, two sources with knowledge of the matter told Reuters. They declined to be identified because they are not authorized to speak to the media.
“I think it was pretty obvious to most people in the company that John was the favorite,” one of the people said. “John is fantastic, well-liked…John is a guy who wants to try things, so we have to change in this business all the time and innovate and I think that’s why people will be excited about what’s to come with his leadership.”
Since taking over Walmart US in 2019, Furner, 51, has led the launch of key initiatives including Walmart+, the company’s premium membership program, and advertising, new revenue streams that the company says will reshape its future.
It has invested in wages, raising the average hourly wage to more than $17. He also modernized the company’s warehouses and distribution centers to enable faster deliveries and has been instrumental in transforming Walmart’s advertising business, Walmart Connect, into a $4 billion operation since its launch in 2021.