Get ready for a fascinating journey as we dive into the story of Doug McMillon, the man who led Walmart, the world's largest retailer, through a transformative era. McMillon's 12-year tenure as CEO was a rollercoaster ride, filled with challenges and triumphs.
He stepped into the role at a time when Walmart was facing a slowdown in its supercenter business. Complaints about low wages and unpredictable schedules for employees were on the rise, and the retail giant was facing tough competition from Amazon, which had been dominating the market for over a decade.
But McMillon had an even more personal challenge: taking over the desk of Sam Walton, the legendary big-box retail pioneer who built an empire from Bentonville, Arkansas.
"I thought I knew what it would be like, having worked with previous CEOs Lee Scott and Mike Duke, but the reality hit me hard," McMillon shared.
On his first day, McMillon immersed himself in the company, visiting stores and chatting with truck drivers and store associates. He wanted to understand the company's needs and reignite growth. But on his second day, the reality of being Walmart's CEO hit him.
"I entered Sam Walton's old office, and I couldn't bring myself to sit behind that iconic desk. I felt intimidated and spooked. It was a powerful moment," McMillon recalled.
His predecessor, Mike Duke, offered some wise words: "Listen, I know how you feel, but tomorrow you'll sit behind that desk. Today, just get comfortable with it. You're going to do this job."
And so, on his third day, McMillon sat in Sam Walton's chair, and the journey began.
Over the years, McMillon not only did the job but transformed Walmart on a scale rarely seen. His actions influenced the entire retail sector, and Walmart became a legitimate competitor to Amazon.
Under McMillon's leadership, Walmart changed its name, bought and sold businesses, expanded internationally, and navigated the pandemic. It evolved from being just the biggest brick-and-mortar retailer to a formidable online player, delivering goods to 93% of American households with same-day shipping.
But how did he do it? McMillon's success lies in his ability to embody the company's values and steer it in a new direction. It required hard work, skill, and the support of the Walton family.
Before his time at the top, McMillon spent years as a merchant, which he describes as the "best part" of his career.
"Being a merchant at Walmart puts you at the heart of everything. You start with understanding the customer and work your way through to suppliers, supply chain, marketing, and operational execution," he said.
McMillon's journey began with a summer job in Walmart's warehouse in Bentonville, where the company's headquarters now stands. His father, a dentist, moved the family there to open a practice, and McMillon needed a job to pay for college.
"I had offers from McDonald's and a Kraft cheese plant, but Walmart offered a better wage, and that's where I started," he recalled.
Little did he know that this summer job would lead to a successful career and a transformative role as CEO.
During his tenure, Walmart's share price skyrocketed, outpacing the S&P 500's growth by a significant margin. The company's market capitalization now stands at a whopping $989 billion, while Amazon leads with over $2.5 trillion.
Walmart's success can be attributed to its own expansion and a strategic vision that saw the company invest in e-commerce and fashion, historically an underloved category.
McMillon credits his successor, John Furner, for igniting the fashion segment, and Denise Incandela, who built a strong team and had a clear vision for fashion at Walmart.
But McMillon's legacy isn't just about growth; it's about taking risks and learning when to quit. He bought Jet.com and Flipkart, but he also knew when to exit international markets and shut down businesses that weren't working.
"Being in good businesses and having the right positioning matters. We learned to say no to some things to focus on our bigger opportunities," McMillon explained.
His skill set was honed through years of experience, and he learned the importance of engaging with critics and the community.
"Walmart is like a big startup, focused on customers and associates. We learned to listen and engage, and that's when our reputation started to change," he said.
McMillon's impact on Walmart is undeniable, and as he steps away, another veteran, Furner, takes the helm.
"McMillon taught me the importance of connecting purpose to performance, staying curious and humble, and taking smart risks. That's the Walmart way," Furner shared.
As McMillon prepares for his next chapter, he reflects on his time at Walmart with a sense of pride and humility.
"It's been an incredible journey, and I'm grateful for the opportunity to lead such an iconic company. Now, it's time for me to explore new horizons, but I'll always be a Walmart associate at heart," he said.
