-In 2020, as COVID-19 raged, John Furner - then chief of Walmart's largest U.S. division - consulted colleagues in China, drawing on their pandemic playbook to swiftly adjust inventory forecasts and fulfillment operations to stay ahead of panic buying.

Furner, a Walmart lifer who grew up in Arkansas where the retailer is headquartered, had lived in China for roughly two years. China, ground zero for the pandemic, had begun retooling supply chains and was months ahead of the U.S. in making decisions. Furner drew on that experience to understand what customers would need, he told reporters at the time. 

When he takes the top job at Walmart on Feb. 1, his collaborative leadership style and deep company knowledge will be tested as he steers the firm through tough economic times, with tariffs pressuring margins and shareholders clamoring to see returns on the retailer's AI investments.

"The business is operating in a tough macro and competitive climate, especially with tariffs, pricing pressures and shifting consumer behavior," said Matt Prescott, president of 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 have grown 21% and shares surged four-fold, as McMillon transformed the big-box retailer into a technology-driven powerhouse during his 13-year stewardship. This year is no exception, as shoppers have flocked to its stores and websites to buy cheaper goods from the company's wide assortment of wares. 

However, Furner has long been marked as his successor, two sources with knowledge of the matter told Reuters. They declined to be named because they are not authorized to speak with the media.

"I think it was pretty obvious to most people at the company that John was the frontrunner," one of the people said. "John is fantastic, well loved ... John's a guy who's wanting to try stuff so we have to change in this business all the time and innovate and I think that's the reason that people are going to be excited about what's to come with his leadership."

Since taking charge of Walmart U.S. in 2019, Furner, 51, has spearheaded the launch of key initiatives including Walmart+, the company's premium membership program, and advertising, new sources of profit that the company says will reshape its future.

He has invested in wages, lifting the average hourly pay to more than $17. He also modernized the company's warehouses and distribution centers to enable speedier deliveries and has been instrumental in building Walmart's advertising business, Walmart Connect, into a $4 billion operation since it launched in 2021. 

"His collaborative leadership style and operational expertise make him well-equipped to take Walmart even further from a sales and profitability perspective, particularly as the company navigates an AI-driven retail transformation," said Corey Tarlowe, an analyst with Jefferies. Furner's mandate is clear: to innovate and accelerate, Tarlowe added. Some of the areas where he could do that include Walmart's AI efforts, which span chatbots for search, partnerships with OpenAI, and incorporating the technology to make faster business decisions, analysts said.

MAINTAINING RELATIONSHIPS

Furner, a keen mountain biker and pilot, has often spoken about the importance of drawing on outside perspectives to navigate fast-moving challenges.

"The world is just too complicated and moving too fast, and these relationships matter," he said in a 2024 interview, recalling that experience as important in navigating the pandemic.

Managing those relationships will be among his challenges.

"The biggest obstacle that John Furner will have to take on is being the face of a $700 billion global revenue business, requiring deft management of media, investor perception, government relations and advocacy groups," said BNP Paribas analyst Chris Bottiglieri. 

Furner, the son of a Walmart employee, is likely up to the task. Having risen through the company's ranks like his predecessor, Furner worked as an hourly associate, and then in merchandising, operations and sourcing roles. He led Walmart's warehouse business Sam's Club from 2017 to 2019 before becoming CEO of Walmart US, where he oversaw 1.5 million associates and 4,600 stores.

"I think the future is exciting," Furner said in a video statement accompanying the announcement.