The torch is being passed at Walmart Inc.

John Furner, 51,  who has run the company’s namesake division in the U.S. since 2019, will become president and chief executive officer of the whole company on Feb. 1.

He succeeds Doug McMillon, 59, who is retiring after 11 years in the top job, when he proved to be a transformational leader, steering the dominant brick and mortar retailer into a new age and setting it up to compete head-to-head with Amazon. 

“John Furner is the right leader to guide Walmart into our next chapter of growth and transformation,” said Greg Penner, the retailer’s chairman. “After starting as an hourly associate and being with us for over 30 years in a variety of leadership roles across all three of our operating segments, John understands every dimension of our business – from the sales floor to global strategy. He has proven that he can deliver results while living our values. John’s six-year leadership of our Walmart U.S. business during a time of rapid change, marked by digital acceleration and strong associate engagement, has positioned us for continued success.”

While Walmart is a mammoth, publicly listed business, employing 2.1 million people and driving revenues of $681 billion, it is still controlled by the family of founder Sam Walton, who rank as some of the richest people in the world. 

Penner’s father-in-law, S. Robson Walton, is Sam’s son

“Our family and board have stated many times that Doug was uniquely qualified to be CEO at the necessary time for Walmart,” Penner said. “Over more than a decade as CEO, Doug led a comprehensive transformation by investing in our associates, advancing our digital and e-commerce capabilities, and modernizing our supply chain, resulting in sustained, robust financial performance. He leaves Walmart stronger, more innovative, and better aligned with our purpose to help people save money and live better.”

McMillon, who has in the past given the family credit for enabling the company’s transformation, described leading Walmart as “a great honor.” 

He also said Furner is the right leader for the next age. 

“I’ve worked with John for more than 20 years,” McMillon said. “His love for our associates and this company runs deep. His curiosity and digital acumen combined with a deep commitment to our people and culture will enable him to take us to the next level. He’s uniquely capable of leading the company through this next AI-driven transformation. He’s a merchant, an operator, an innovator, and a builder. I know that our future is bright with his leadership.”

Walmart has been changing fast over the past decade. 

It is no longer just a brick and mortar retailer, but a multifaceted company with a big e-commerce presence, an online marketplace, an advertising business and more. 

Now  — like the rest of the world — Walmart is trying to figure out just what AI means for its business and retail at large. 

“As we enter a new retail era fueled by innovation and AI, our purpose and our people will continue to guide us,” Furner said. “Together, we’ll find new ways to serve customers, support our associates, and strengthen the communities we call home.”

Furner was also elected to the company’s board, where he will sit side by side with McMillon who will stay on as a director for another year to ease the transition. 

Investors, who are semi-allergic to change when a business is working well, traded shares of Walmart down 2.3 percent to $100.18 in premarket trading Friday.