In a recent in-depth conversation as part of Harvard Business Review’s Future of Business series, Walmart CEO Doug McMillon shared valuable insights into leading the world’s largest company amid a rapidly changing global landscape. Having announced his retirement effective early 2026, McMillon reflected on his journey from joining Walmart as an hourly associate in 1984 to becoming CEO in 2014, and discussed how the retail giant has navigated global disruptions, embraced digital transformation, integrated artificial intelligence (AI), and remained true to its founding purpose.
### Leading Through Uncertainty and Change
When asked about the challenges of leading a massive global company during times of geopolitical uncertainty and technological disruption, McMillon emphasized the importance of knowing who you are while staying open to change. He views AI not just as a disruptive force, but a significant growth opportunity that can fundamentally improve customer experience by saving time and creating more personalized shopping journeys. He also noted that the company has adapted to ongoing geopolitical turbulence by learning to operate effectively in such an environment, building resilience into Walmart’s operations.
### The Role of AI at Walmart
McMillon offered a nuanced perspective on AI’s impact, particularly addressing concerns about employment. He acknowledged that AI will change every job at Walmart to some degree, from frontline staff to leadership roles, leading to the elimination of certain tasks but also the creation of new, AI-oriented roles. The company is committed to equipping its 2.1 million associates with AI tools and training to help them adapt and thrive alongside new technologies. For example, providing all employees with access to ChatGPT and other AI tools is part of Walmart’s strategy to foster continuous learning and growth.
The goal, McMillon explained, is not just to automate for cost-efficiency but to enhance the workforce’s capabilities, ensuring Walmart remains a major employer in the future. The digital transformation also extends to reimagining the e-commerce experience, moving beyond basic search bars to multimedia, personalized, and contextual shopping platforms that leverage AI’s potential.
### Staying True to Walmart’s Purpose
Since its founding by Sam Walton, Walmart has been a purpose-driven company with the mission to “Save Money. Live Better.” McMillon noted that while the core purpose remains intact, its meaning has evolved. Early on, the focus was on helping people save money and improve their lifestyles. Over time, this has expanded to include saving customers’ time, strengthening communities, promoting sustainability, and playing a role in healthcare.
Balancing this purpose with intense profit pressures is a constant challenge. McMillon recounted how, over the past decade, Walmart made significant investments in higher wages, free education, e-commerce expansion, and technology modernization. These investments initially reduced the company’s operating income percentage from above 8% to just over 4%, but they were critical for positioning Walmart for long-term success. Importantly, these changes were funded primarily by shareholders, not customers, allowing Walmart to keep prices low while transforming the business model.
### Managing Supply Chain Shocks and Tariffs
McMillon reflected on how Walmart navigated the COVID-19 pandemic and the resulting supply chain disruptions. He praised the judgment and agility of Walmart’s associates, who made quick decisions under unprecedented conditions to keep stores stocked and customers safe. The pandemic accelerated the company’s decision-making cadence from weekly or monthly to daily, fostering a culture of rapid, decentralized action.
Regarding tariffs and ongoing trade uncertainties, McMillon described the complex planning and scenario analysis that Walmart undertakes. For instance, buying seasonal merchandise like Halloween costumes requires anticipating tariff changes months in advance, considering sourcing alternatives, pricing impacts, and consumer behavior under inflationary pressures. He highlighted that more than two-thirds of Walmart’s US merchandise is sourced domestically, which provides some insulation, but the company still manages goods from over 100 countries. The ability to flexibly adjust sourcing and inventory in response to tariffs and geopolitical shifts has become a critical capability.
### Building a Culture of Continuous Transformation
McMillon acknowledged that transformation at Walmart is not a one-time project but a continuous journey. When he became CEO nearly 12 years ago, the company faced negative sales in its US supercenters and had a limited e-commerce presence. The leadership team decided early on to clarify what would not change — namely, Walmart’s timeless purpose, core values, and culture — even as nearly everything else was open to change.
This approach helped employees embrace ongoing transformation, including major organizational shifts to adopt capabilities like design,