Shares of the company fell about 3% in premarket trading.

McMillon, 59, who has been heading the retail bellwether since 2014, will retire in January next year, but continue to be employed as an adviser of the company through Jan 31, 2027, Walmart said. The Bentonville, Arkansas-based retailer’s stock has risen 323% since he took over, outperforming the S&P 500 index.

“Doug McMillon has been a terrific CEO, leading Walmart’s transformation into an even bigger and stronger retail powerhouse fueled by technology,” said Joseph Feldman, an analyst with Telsey Advisory Group.

“John Furner is the logical choice to be the next CEO. He is a lifer at Walmart who started as an hourly associate in 1993, so he is a good cultural fit,” he added.

The move is the latest in a string of leadership changes sweeping through the retail sector as companies tackle tariff pressures, an uncertain economy and choppy consumer spending backdrop. Kohl’s, Kroger and Target are among retailers who have named new CEOs this year.

Furner, 51, currently serves as CEO of Walmart US He joined Walmart as an hourly associate around three decades ago, and has held leadership roles across merchandising, operations and sourcing, the company said. He has also served as president and CEO of Sam’s Club.

The company reports quarterly results next week.