An unexpected C-suite appointment cements Walmart’s new identity as a tech company

Good morning. Phil Wahba writes this morning from New York. This week will bring big changes to the biggest company in the world, Walmart Inc. February 1 will mark the retirement of Doug McMillon after a remarkable tenure and Day 1 for his replacement, John Furner. But the company is also implementing other changes in its C-suite that make one thing clear: Walmart, a 64-year-old retailer, now sees itself as a technology company.

Incoming Walmart US CEO David Guggina, who replaced Furner over $500 billion local business, has no experience running stores and has never held a sales role, at Walmart or anywhere else. Such an appointment would have been unthinkable at Walmart just a few years ago, before the company, under McMillon, decided to become a tech-forward company and not be allowed. Amazon ran away with the prize.

But Guggina brings to his new role at Walmart another type of experience that Walmart has prioritized over the years: e-commerce, automation, and supply chain expertise gained at Walmart and before that at Amazon. In announcing his promotion recently, Walmart honored Guggina’s work, among other things, in building delivery capabilities to serve 95% of US households within three hours.

Another area where Guggina appealed to Walmart brass: adoption of AI. “AI is changing how people shop, and customer expectations are higher than ever. recent LinkedIn post.

Analysts consider Walmart to be ahead of other retailers when it comes to AI-assisted shopping. Last October, it announced a partnership with OpenAI to allow shoppers to browse and buy Walmart products directly within ChatGPT. Last week, Walmart and Google Office has partnered their own shopping tool. Also last week, Walmart’s executive vice president for facilitation, product and AI design, Daniel Danker, suggested at an investor conference that the company is developing auto-order for replenishing household staples.

Guggina isn’t the only tech executive whose star is rising at Walmart. The company also named Seth Dallaire chief growth officer for Walmart US, charging him with continuing to push Walmart beyond traditional retail into technology-heavy business lines—including emerging advertising, media, and online marketplace businesses.

The timing of Guggina’s promotion was apt: It came quickly Walmart moved its shares from the New York Stock Exchange of the tech-heavy ones Nasdaq exchange. In December, Walmart said the move underscored its “advanced approach to technology.”

Strengthening Walmart’s technology and AI aura has the added benefit of boosting the company’s stock: Last year, Walmart shares rose 27%, double the growth of the S&P 500 and beating Amazon.

Contact CEO Daily by Diane Brady at [email protected]

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