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Doug McMillon: Walmart's CEO, Decades in the Making
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Doug McMillon's long and inspiring journey at Walmart began in 1984 while he was still in high school. From a summer job unloading trailers in the 80s to the head of the company, he has taken on roles and responsibilities within every corner of the organization. Guiding Walmarts international expansion, pushing heavy investments in e-commerce, and overseeing wage increases are just some of the milestones of the veteran retailer. Let's take a closer look at his career, the challenges he has faced as CEO, and why a lifelong commitment to Walmart seemed destined.
Key Insights
Climb to the top: Four decades have passed since McMillon first started at Walmart. Few can claim such a remarkable career journey within a global company – from part-time employee to CEO.
Tasked to modernize: Walmart was lagging behind online retailers by the time of McMillon's appointment as CEO. Hope was that he would turn the e-commerce trend for the giant retailer.
On the shoulders of giants: Throughout his time leading Walmart, McMillon has maintained a close working relationship with the extended Walton family.
Walmart Career Written in the Stars?
Doug McMillon was born in Memphis, Tennessee, in 1966 and grew up in Jonesboro, Arkansas. Almost as if his future career was predestined, the McMillon family relocated across the state when Doug was 16. Leaving his childhood home in Jonesboro behind, they moved to Bentonville – the location of Walmart's headquarters then and now.
Just a year later, in 1984, McMillon began his career at Walmart as a summer associate while attending high school. His first job involved picking orders and unloading trailers in a warehouse. After finishing high school, he enrolled at the University of Arkansas, where he earned a bachelor's degree in accounting. Following his undergraduate studies, he pursued a Master of Business Administration from the University of Tulsa.
While finalizing his MBA he was accepted into the merchant training program at Walmart, set to begin shortly after his graduation. In preparation for the program, he was directed to work as an assistant manager at a Walmart store in Tulsa. Armed with invaluable in-store experience he returned home, ready to report to headquarters.
Further reading: Walmart: Walton, Retailing, and Everyday Low Prices
Back in Bentonville & Headquarters of Walmart
In January 1991, McMillon returned to Bentonville to begin Walmart's training program, designed to create "buyers" – managers who decide which items their stores will stock. This program serves as one of Walmart's entry points for aspiring management. The first product category he was responsible for as a buyer was fishing tackle.
Over the following years, he took on various roles as a buyer and merchandiser, managing a wide range of Walmart products across numerous categories. As he became familiar with Walmart's diverse and dynamic assortment, he built his reputation within the rapidly growing company.
McMillon's capabilities were soon recognized, leading to his promotion to General Merchandise Manager at Sam's Club (Walmart's wholesale division, named after founder Sam Walton), and later to Senior Vice President at Walmart. In 2005, he was appointed CEO of Sam's Club. Four successful years later, he took over as head of Walmart International, succeeding Mike Duke, who had become CEO of the company.
At Walmart International, he had a strong impact through effective expansion strategies. During his tenure from 2009 to 2013, Walmart grew its international presence from roughly 3,300 stores in 14 countries to over 6,300 stores in 26 countries. At the end of his spell at the division, international revenue amounted to 29% of the company's revenue.
Filling the Shoes of Sam Walton as CEO of Walmart
In late 2013, Walmart announced that Doug McMillion would assume the role of CEO. Legendary founder and CEO, Sam Walton, had always feared that Walmart would become too bureaucratic as it grew larger, and for many decades, the company had managed to keep its hierarchy relatively flat.
However, by the 2000s to early 2010s, Walmart had become a global enterprise, which had led to a more bureaucratic organization with different teams working increasingly in silos. Furthermore, its commitment to “Everyday Low Prices” had led to underinvestment in innovation – causing it to lose market share to the online alternatives offering greater affordability and convenience, such as Amazon.
Further reading: Sam Walton: Building Walmart
McMillon faced tough challenges as he stepped into the shoes once filled by Mr. Sam. By emphasizing the need to modernize and innovate, McMillion instilled a long-term focus that spread throughout the divisions. Regarding its ambition to compete in e-commerce, it may have taken some years and failed acquisitions, but McMillon and Walmart ultimately diverted back to focusing on Walmart.com.
The pursuit to gain market share in the online space has finally paid off in recent years. In 2023, U.S. e-commerce revenue reached $65.4 billion, accounting for roughly 10% of the company's revenue and up more than 4x since 2019. Since his appointment, Walmart has maintained its status as the largest private company in the world by revenue.
Within Walmart, McMillon is respected and popular for his actions supporting employees. These include increasing wages, expanding parental leave, and paying tuition for associates seeking educational opportunities. Throughout his tenure, McMillon has worked closely with Chairman Greg Penner and the Walton family, coordinating significant investments in e-commerce and wage increases with these influential ownership groups. Having the guidance of his allies arguably makes it easier to make long-term decisions without feeling forced to chase short-term profits to please stakeholders.
In Conclusion
Few CEOs of multi-billion-dollar companies share a career path quite like Doug McMillon's. Joining Walmart as a summer associate in 1984, he has seen close to every corner of the retailer – from “buyer” of fish tackle to guiding its international expansion and overseeing its e-commerce strategy. With over a decade at the helm, he has managed to modernize Walmart while staying committed to Sam Waltons promise of “Everyday Low Prices”.
Further reading: Sam Walton's Rules for Building a Business
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