The next 18 months will be an especially consequential period for several of the nation’s biggest retailers. Walmart, Target, Kroger, Albertsons and Walgreens all have new chief executive officers, and their performance will be telling as the arrival of agentic AI promises to alter the way consumers shop and businesses operate.
For John Furner, who succeeded Doug McMillon as Walmart’s CEO in February, the task at hand is keeping the retailer on a steady upward trajectory; last month saw Walmart earn the distinction of becoming the first non-tech company to hit $1 trillion in market capitalization. After a recent meeting with members of the board of directors and leadership team, Furner reiterated his commitment to the principles that have long sustained the company.
“There’s a clear focus on serving customers and members, supporting associates and executing with discipline,” he said. “What stands out most is the opportunity ahead. Walmart is well positioned for what’s next.”
Furner acknowledged the power of AI and its promise to bring about positive change. But the breakneck pace of change and new technology’s potential to upend existing business paradigms will test Furner, as it will all c-suite executives.
Michael Fiddelke, who took the reins at Target at the beginning of February, has more pressing concerns. Following an extended period of corporate drift and lackluster results, he launched a bold, $2 billion plan to get the company back on track. “This new chapter of growth is defined by clear choices and rooted in a deeper understanding of our unique lane in retail, the guests we serve and the areas where we’re distinctly positioned to win,” said Fiddelke.
Susan Morris and Greg Foran, new leaders at Albertsons and Kroger, respectively, confront similar challenges. The protracted battle to win approval of the proposed merger between the two supermarket operators — a battle that was ultimately abandoned in the face of legal and regulatory hurdles — left the companies in limbo. Now Morris, Albertsons’ CEO since last May, and Foran, who has headed Kroger for just over a month, are forging new strategic directions amid intense competition, an unsettled economic environment and continued uncertainty about tariffs and their impact on grocery prices.
A turnaround is also under way at Walgreens, where Mike Motz was named CEO last August after the venerable drug chain was acquired by private equity firm Sycamore Partners. An experienced retail executive who at one time served as president of Shoppers Drug Mart, Motz has recast much of the management team and is right-sizing the company’s store base and workforce. Motz’ job is complicated by the malaise affecting the entire drug store channel.
It will take time to understand the impact of these new leaders. For a quarter or two, financial results — good or bad — will have as much to do with their predecessors as they do with them. But by next year at this time, a clearer picture of where some of the retail industry’s most important players are headed will have started to emerge.
