Incoming Walmart chief government John Furner began on the mega retailer as an hourly worker stocking cabinets. Now, the most important U.S. firm by income is relying on him to information it by means of its subsequent chapter.
CEO Doug McMillon on Friday introduced his retirement after a decade as chief of the No. 1 firm on the Fortune 500. His final day will probably be Jan. 31.
Furner, 51, began his Walmart journey at a backyard middle within the firm’s hometown of Bentonville, Ark., however will, beginning in February, now tackle the duty of main the corporate’s 2.1 million staff and operations at its practically 11,000 shops throughout 19 international locations.
After learning advertising and marketing administration on the College of Arkansas, Furner rose by means of the ranks at Walmart from retailer supervisor to district supervisor and purchaser, then on the company facet as divisional common supervisor, and VP of world sourcing. He even spent two years in Shenzhen with Walmart China operating merchandising and advertising and marketing.
Most not too long ago he served in high-profile positions as president and CEO of first Sam’s Membership after which Walmart U.S.
“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,” Greg Penner, Walmart’s chairman of the board, stated in an announcement.
On his means out the door, McMillon additionally gave credit score to Furner, who he stated he has labored carefully with for 20 years.
“He loves this company and his fellow associates, he deeply understands our business so well, and he has the right characteristics to lead us into the future. He’s a merchant, an operator, an innovator and a builder,” McMillon stated Friday in a submit on LinkedIn.
Furner’s funding in staff
Partly due to his humble beginnings as a retailer affiliate, Furner has throughout his tenure helped oversee a large transforming of how Walmart pays its retailer managers. In an effort to spice up morale and retention, Walmart supplied its highest performing managers pay packages price between $420,000 and $620,000 per 12 months.
The employees’ base wage was raised to between $130,000 and $160,000—greater than double the median yearly wage of an American employee. The remaining is made up of enormous inventory grants and annual bonuses, which Furner stated was meant to “make managers feel like owners.”
The corporate additionally introduced again a bonus program for retailer staff. Some qualifying staff might doubtlessly earn as much as $1,000 per 12 months from this system based mostly on their years of service, in keeping with the corporate.
Whilst AI threatens the roles of staff throughout industries, Furner has stated its worker depend over the approaching 5 years will stay regular even when staff are extra productive. The roles that do disappear will probably be changed with new positions inside the firm, he added.
“We’re extending people’s career and those jobs pay better. The attrition rates are really low,” Furner stated in the course of the Brainstorm Tech convention in Park Metropolis, Utah in September.
Partly due to these modifications, the corporate claimed a prime 10 spot on Fortune’s Greatest Massive Workplaces in retail for 2024.
Why Walmart selected John Furner as CEO
A part of Furner’s administration philosophy could have been influenced partly by his household and early experiences. Engaged on the farm along with his grandfather as a baby, Furner realized the worth of onerous work.
His grandfather’s hands-on method additionally utilized to fixing issues. When he wanted one thing, Furner’s grandfather, who he stated was a product of the Nice Despair, most well-liked to piece collectively an answer by hand as a substitute of shopping for one thing.
“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 stated.
Furner’s penchant for onerous work and artistic downside fixing got here in useful throughout his most current high-profile roles as president and CEO of Sam’s Membership after which Walmart U.S. Throughout his stint as chief of Sam’s Membership, Furner oversaw 11 consecutive quarters of optimistic progress and took on competitor Costco partly by making the corporate leaner and shutting shops.
Then, when the corporate was hit with an unprecedented problem within the type of the COVID-19 pandemic, Furner helped the corporate beef up its provide chain and achievement facilities to fulfill the second.
As he advised Matthew Shay, president and CEO of the Nationwide Retail Federation in 2020, Walmart reshaped it enterprise, deprioritizing optical and auto-care facilities whereas investing in its grocery enterprise to fulfill demand from what he referred to as the “stock-up phase,” the place prospects rushed to construct up their provide of all the pieces from bathroom paper to consumables.
Then, the corporate invested deeply in achievement facilities in addition to pick-up and supply providers to adapt to the “work from home” period and skyrocketing on-line purchases.
Because of this, web gross sales grew in each 2020 and 2021, regardless of the pandemic disruption. In 2021 alone, Walmart’s web gross sales for its U.S. enterprise grew by an eye-popping $29 billion, tremendously outpacing the earlier 12 months’s gross sales progress, whereas its ecommerce operations grew by 79%.
