The Operational Excellence Tools Series | #34: U.S. Retail Enters a Leadership Reset.

Operational Strategies Are Rewritten for 2026.

Welcome to the unique weekend article for the Loyal Fan subscribers-only edition.

This is the #34 article of The Operational Excellence Tools Series.

Outlines and Key Takeaways

Part 1 – Official Announcement

Part 2 – Background and Meaning

Part 3 – Analysis Through the Lens of Operational Excellence

Part 4 – Lessons for Businesses

Part 5 – Conclusion

PART 1: OFFICIAL INFORMATION

As the industry enters the late-2025 and early-2026 period, the U.S. retail sector has recorded a wave of senior leadership changes across several major corporations, most notably Walmart and Target. According to official corporate announcements and reports from U.S. financial media, these leadership transitions reflect how retail companies are adjusting their strategic direction and operating models to adapt to an increasingly complex business environment, characterized by cost pressures, shifts in consumer demand, technological competition, and changing shopping behaviors.

At Walmart, the world’s largest retailer by revenue, the board of directors has announced a plan for a Chief Executive Officer (CEO) transition effective in early 2026. According to information published by Reuters, Doug McMillon, who has served as CEO since 2014, will retire in early 2026 after more than a decade leading the company. His successor has been announced as John Furner, currently serving as President and CEO of Walmart U.S. This appointment has been approved by Walmart’s board of directors and publicly disclosed.

During his tenure as CEO, Doug McMillon has been recognized for leading Walmart through significant transformations, including the expansion of e-commerce, investment in logistics infrastructure, adoption of digital technologies, and restructuring of supply-chain operations to compete with e-commerce rivals. Throughout this period, Walmart has also increased investment in warehouse automation, data capabilities, and artificial intelligence to improve operational efficiency and customer experience.

The incoming CEO, John Furner, is an internal leader who has spent more than 30 years with Walmart. According to official Walmart disclosures, Furner has held multiple operational management roles across different regions and business segments before becoming CEO of Walmart U.S. The decision to appoint an internal leader indicates Walmart’s emphasis on management continuity, while placing strong importance on hands-on operational experience at a time when the retail sector faces intense pressure on costs and efficiency.

Alongside Walmart, Target Corporation has also announced a senior leadership change effective in early 2026. According to financial reports and information released by Reuters, Brian Cornell, who has served as CEO of Target since 2014, will step down from the CEO role in February 2026 and transition to the position of Executive Chairman. His successor has been named as Michael Fiddelke, who currently serves as Chief Operating Officer (COO) of Target.

Michael Fiddelke is another internal executive, with more than 20 years of experience at Target. Prior to becoming COO, he held multiple roles related to finance, store operations, and enterprise management. According to company disclosures, his appointment is intended to ensure that Target continues to execute strategic initiatives launched in recent years, including cost optimization, organizational simplification, and investment in retail technology.

Between 2023 and 2025, Target faced a number of challenges, including margin pressure, elevated inventory levels, and shifts in consumer behavior as shoppers tightened spending. The company implemented several initiatives to improve operational efficiency, including workforce adjustments, restructuring of functional teams, and greater use of technology in supply-chain management and omnichannel retailing. These efforts have been reflected in shareholder reports and investor communications.

According to data compiled by U.S. financial media, the wave of CEO changes in the retail sector in 2025 has not been limited to Walmart and Target. Business Insider reported that in 2025, more than 40 retail CEOs in the United States announced plans to step down or transfer leadership, a figure significantly higher than the average in previous years. This trend has emerged amid simultaneous pressures from inflation, high labor costs, supply-chain disruptions, and intensifying competition from digital retail models.

Analysts suggest that many boards of directors are now seeking leaders who can navigate uncertainty, while possessing deep expertise in operations, technology, and cost management. Rather than focusing solely on scale expansion, major retail corporations are increasingly emphasizing the sustainability of their business models and the ability to maintain long-term profitability.

According to the Financial Times, these leadership changes are also occurring amid heightened investor and financial-market demands for operational discipline and capital efficiency. Retail companies are expected not only to grow revenue, but also to demonstrate strong cost control, supply-chain optimization, and effective use of technology to enhance overall performance.

A notable aspect of both the Walmart and Target transitions is that their boards selected internal leaders rather than external hires. Based on disclosed information, this approach aims to reduce strategic disruption risks, while leveraging the deep operational knowledge, organizational culture, and large-scale store network experience accumulated by internal executives.

Official information indicates that the wave of leadership changes in the U.S. retail industry entering 2026 is not an isolated phenomenon, but rather a clear trend closely tied to strategic and operational restructuring. Major retail companies are preparing for a new phase in which operational efficiency, technology, and adaptive capability are viewed as critical factors for sustaining competitive advantage in an increasingly volatile market environment.