Walmart Inc. (WMT) CEO Doug McMillon will retire at the end of January after nearly 12 years leading the nation’s largest retailer, according to a company filing released Friday.
John Furner, currently Walmart’s U.S. CEO, will take over as head of the company on February 1, according to the filing. McMillon, 59, will officially retire on January 31, 2026. However, he will continue serving as an advisor through January 31, 2027.
The leadership transition comes as the retail sector navigates a divided economy, with consumer staples and retail ETFs showing mixed performance while wealthier shoppers increase spending and lower-income consumers pull back, according to CNBC reporting on consumer spending patterns.
McMillon stepped into the top role at Walmart in February 2014 and oversaw the company’s transformation into an e-commerce leader, according to the filing. During his tenure, Walmart’s shares rose nearly 300%, according to a CNBC report. While the company’s stock is up nearly 14% year-to-date, it fell more than 2% in premarket trading Friday following the announcement.
Furner, 51, has served as CEO of Walmart’s U.S. business since 2019, overseeing more than 4,600 stores, according to the filing. He started at the company in 1993 as an hourly associate.
The CEO transition at Walmart follows Warren Buffett’s Monday announcement that he would step down as CEO of Berkshire Hathaway Inc. (BRK.A/BRK.B) at the end of the year, with Greg Abel set to take over. Berkshire holds Walmart among its portfolio companies.
Read More: Buffett Steps Down: Berkshire Hathaway ETFs to Watch
Walmart-Heavy Consumer ETFs Post Mixed Results
Consumer staples ETFs with Walmart exposure have delivered varied performance through recent market volatility. The Vanguard Consumer Staples ETF (VDC) declined 1% over one month but has gained 1.3% year-to-date, according to ETF Database. The fund holds Walmart Inc. as its largest position at 14.1% of assets. It pulled in $78.84 million in one-month flows.
The VanEck Retail ETF (RTH) posted a 3.4% gain over one month and an 12.3% year-to-date return, according to ETF Database. Walmart represents 9.3% of the fund’s holdings, according to the data. The fund saw $7.46 million in one-month outflows.
The newer Global X PureCap MSCI Consumer Staples ETF (GXPS), which launched in July, holds Walmart as its top position at 16.4% and declined 0.6% over one month, according to ETF Database. The fund has attracted $1.81 million in one-month inflows.
Consumer spending patterns have increasingly shown a K-shaped economy, with wealthier Americans spending more while lower-income consumers pare back, according to third-quarter earnings reports from multiple companies. The top 10% of households saw income increase 4.2% between 2023 and 2024. Meanwhile, there was no meaningful change for the bottom 10%, according to Census Bureau data cited in a CNBC report.
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