When Doug McMillon took the helm as Walmart’s CEO in February 2014, the retail giant was grappling with stagnant sales, unhappy employees, and fierce competition from e-commerce upstarts like Amazon. Over his nearly 12-year tenure, Walmart’s stock has surged 312%, transforming the company into a powerhouse that has outpaced many rivals amid economic upheavals including tariff hikes and a massive shift to online shopping.

McMillon’s strategy emphasized omnichannel retail—seamlessly blending physical stores with digital platforms—which proved crucial during periods of high inflation, supply chain disruptions, and tariff impositions. As he prepares to step down in January, analysts are reflecting on how his leadership navigated these challenges, delivering sharp sales gains and robust stock performance, according to CNBC.

Strategic Pivot to E-Commerce Dominance

Under McMillon, Walmart invested heavily in e-commerce, achieving $100 billion in online sales in 2024, though still trailing Amazon’s dominance. This pivot included acquisitions like Jet.com and partnerships that bolstered Walmart’s digital infrastructure, enabling it to compete effectively during the e-commerce surge triggered by the pandemic.

Comparatively, Amazon’s stock rose 1,100% over the same period, but Walmart’s gains were more consistent in the retail sector. Target saw a 210% increase, while Costco outperformed with a 470% rise, per data from CNBC. McMillon’s focus on everyday low prices and supply chain efficiency helped Walmart weather these dynamics better than peers.

Navigating Tariff Hikes with Confidence

Tariff hikes, particularly those on imports from China, posed significant challenges for retailers reliant on global supply chains. Walmart, importing a substantial portion of its goods, faced potential cost increases of 15-16%. Yet, McMillon expressed optimism, stating at the company’s investor day, “Nothing about the current environment impacts our confidence in our business or our strategy,” as reported by Fortune.

During earnings calls, McMillon noted that costs were rising weekly as inventory was replenished at post-tariff levels, expecting impacts into Q3 and Q4. Despite this, Walmart’s omnichannel approach allowed it to mitigate some pressures by sourcing alternatives and passing minimal costs to consumers, unlike Target, which saw more volatility in stock performance amid similar tariff woes.

Rivals’ Struggles in Comparison

Target’s stock performance, while positive at 210%, lagged behind Walmart’s due to slower adaptation to e-commerce and greater sensitivity to economic downturns. Amazon, despite its massive growth, faced antitrust scrutiny and margin pressures that Walmart avoided through its hybrid model. Posts on X highlight Walmart’s e-commerce growth at 21% year-over-year in Q1 FY25, outpacing rivals in key metrics.

Costco’s stronger 470% gain stems from its membership model and bulk sales, which provided a buffer against tariffs. However, Walmart’s broader appeal to everyday shoppers, including higher-income demographics during inflation, gave it an edge, as McMillon steered the company through political upheaval and high inflation, per NBC News.

Leadership Legacy and Succession Plans

McMillon’s tenure delivered an average annual return of 14.53% to shareholders, with total returns reaching 419% when including dividends, outperforming most departing CEOs, according to Rolling Out. His decision to raise employee wages in 2015, initially criticized by Wall Street, ultimately improved store operations and customer satisfaction.

As John Furner, current Walmart U.S. CEO, prepares to succeed McMillon on February 1, 2026, the transition is expected to maintain continuity. Furner has been instrumental in U.S. operations, and analysts anticipate he will build on McMillon’s omnichannel foundation amid ongoing retail challenges, as detailed in Talk Business & Politics.

Market Reactions and Future Outlook

The announcement of McMillon’s retirement led to a slight dip in Walmart’s stock, but overall sentiment remains positive. Over the last five years, Walmart has doubled Amazon’s returns, showcasing its resilience. Industry insiders note that McMillon’s integration of online and in-store experiences has positioned Walmart as America’s top retailer, per CNN Business.

Looking ahead, with potential new tariff policies looming, Walmart’s diversified supply chain and advertising growth—up 24% year-over-year—could further insulate it. X posts from analysts emphasize Walmart’s lower valuation compared to Amazon despite stronger margins in some areas, signaling undervalued potential in the retail landscape.

Innovation in Retail Amid Economic Shifts

McMillon’s era saw Walmart expand into advertising and grocery delivery, with online grocery sales rivaling Amazon’s during key periods. For instance, during March to May 2020, Walmart’s online growth hit 230%, compared to Amazon’s 80%, as cited in posts on X from sources like Web Smith.

This innovation helped Walmart attract a broader customer base, including upper-income shoppers, during inflation spikes. In contrast, Target struggled with inventory issues, and Amazon’s focus on Prime eroded some margins. McMillon’s confident stance on tariffs, as in his quote about narrow retail margins from posts on X, underscores Walmart’s strategic pricing power.

Broader Industry Implications

The retail sector has seen an 80% surge in executive departures post-pandemic, driven by burnout, per WebProNews. McMillon’s exit fits this trend, but his legacy of turning Walmart into an e-commerce contender sets a high bar for successors across the industry.

Analysts from Morningstar note that Walmart’s stock has outperformed the market since 2014, with McMillon’s wage hikes and store upgrades proving prescient. As rivals like Amazon trade at lower valuations despite higher growth, Walmart’s balanced approach may inspire future retail strategies in an era of persistent economic uncertainty.