(Reuters) -Walmart ( WMT ) said on Friday that CEO Doug McMillon would retire next year and that insider John Furner would succeed him as the retailer's top boss.

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

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. Target also named insider Michael Fiddelke as its new CEO earlier this year.

Furner currently serves as CEO of Walmart U.S. He joined Walmart ( WMT ) 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.

McMillon, who has been heading the retail bellwether since 2014, will retire in January next year, but continue to be employed as an associate of the company through January 31, 2027, Walmart ( WMT ) said.

The company reports quarterly results next week.

(Reporting by Juveria Tabassum in Bengaluru; Editing by Savio D'Souza and Anil D'Silva)