What: Walmart achieves remarkable transformation under CEO Doug McMillon, evolving from traditional retailer to tech-powered enterprise while maintaining market leadership with $680bn revenue.

Why it is important: This evolution illustrates the potential for legacy retailers to reinvent themselves through technological adoption while maintaining their core competitive advantages.

Under Doug McMillon's leadership, Walmart has transformed from a traditional retailer into a technology-driven powerhouse. The contrast between McMillon's early experience loading trucks in an Arkansas warehouse and today's automated facilities, equipped with AI-powered systems and robotic arms, symbolises this evolution. With $680 billion in revenue and 2.1 million workers, Walmart has become the world's largest company, capturing 10% of US retail spending excluding cars and 25% of grocery expenditure. The company's successful adaptation to e-commerce competition has been achieved by reinvesting profits into new technologies while leveraging its extensive physical infrastructure of 5,000 stores. Investors have recognised this transformation, driving Walmart's market capitalisation up by over 50% to $750 billion, with a premium valuation exceeding those of major tech companies. The company's ability to maintain 3-4% sales growth while navigating trade disruptions demonstrates the resilience of its reinvented business model.

IADS Notes: Walmart's transformation under Doug McMillon exemplifies successful retail evolution. According to Financial Times' February 2025 coverage , the company  achieved record revenue of $681 billion while building a marketplace of over 700 million items, demonstrating its successful pivot to digital retail. WWD's February 2025 analysis  revealed how strategic investments in e-commerce and digital capabilities, with capital expenditures reaching $23.8 billion, have driven revenue diversification and operational efficiency. Retail Dive's August 2024 report highlighted Walmart's sophisticated use of AI to enhance 850 million product catalog data points, significantly improving customer experience and operational efficiency. Fashion Network's December 2024 coverage  showed how this transformation attracted higher-income consumers, with households earning over $100,000 accounting for 75% of market share gains. The company's evolution from traditional retailer to tech-powered enterprise, while maintaining its core value proposition of "everyday low prices," demonstrates how established retailers can successfully adapt to compete in the digital age.

How Walmart became a tech giant—and took over the world