It's a new era for Walmart (WMT +1.47%). After taking the helm all the way back in 2014, in January of this year, Doug McMillon stepped down as CEO, ceding this role to John Furner. And as is the case with any change in executive leadership, this transition will at least create some change in how the company operates.
What do current and prospective Walmart shareholders need to know about the new chief of the world's biggest brick-and-mortar retailer? For starters, these four things.
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1. He's not new to the business, or even the company
Furner is anything but an outsider. Indeed, he's been with the company since 1993, starting as an hourly associate and working his way up through several different leadership roles. He's also been a key executive for the retailer's Sam's Club arm, and actually become the chief executive of Walmart U.S. in 2019 before being announced late last year as the next CEO of the entire international operation.
2. He looks for the smartest and the most applicable solution to problems
Much like McMillon (and perhaps even more so), Furner is willing to explore and solve problems from the front lines. He's under no illusion that he knows and can do everything, though. Along with his own promotion, since his selection several other executives have either left the company or been moved to other roles to make room for other leadership he trusts to address what he can't.
3. Furner likes technology (and AI), but understands it's only a tool
Picking up where McMillon left off, Furner is adding to the ways in which the use of technology can make for a better -- and more profitable -- shopping experience. This includes the continued rollout of digital on-shelf price labels and a revamp of Scan-and-Go technology that wasn't exactly well received its first go-around, for instance.
NASDAQ: WMT
Key Data Points
Perhaps the one technology Furner's embracing much more aggressively than McMillon did, however, is artificial intelligence (AI). For example, purchases via Walmart.com can now be completed directly using ChatGPT's Instant Checkout feature, and in January Walmart unveiled a partnership with Google to create a seamless shopping experience via its AI-powered Gemini chatbot.
It's not just consumer-facing AI solutions, though. The company has already seen measurable success using artificial intelligence to track inventory, schedule store employees, and more.
That being said, Furner has also said more than once that he doesn't view AI as a way of eventually replacing workers. He's actually a fan of empowering employees with these tools. That's why investors should expect to see technology become even more integral to Walmart's operation in the foreseeable future.
4. He's probably going to be around for a while
Finally, while he's experienced, John Furner's only 51 years old. He's still got plenty of years ahead that he'll be able to turn his vision for the company into reality. That means many years of predictability for shareholders.
Perhaps most important to investors, Walmart stock is just as investable with Furner in charge is it was while McMillon was at the helm.
