MEXICO CITY (Reuters) -Walmart's ( WMT ) Mexico and Central America chief executive, Ignacio Caride, will step down as CEO and from the board of directors after just over a year, the unit of the U.S. retailer said on Friday in a move that surprised analysts.

Walmart's ( WMT ) Chile CEO, Cristian Barrientos Pozo, will take over as interim chief executive until a recruitment process is completed, the company said in a statement.

Barrientos Pozo, previously senior vice president of operations at Walmart ( WMT ) de Mexico, brings more than 26 years of retail experience, including in expansion, store openings and digital transformation, the company said.

The company, Mexico's largest retailer, operates Walmart ( WMT ), Sam's Club, and Bodega Aurrera stores across six countries.

Known as Walmex, the company reported a 10% drop in net profit in its second-quarter results released in July, citing a slower-than-anticipated recovery in consumer spending despite an 8% increase in sales.

CHANGE WELCOMED DESPITE SURPRISE

Caride's resignation, while unexpected, could be a refreshing change, analysts said.

JPMorgan analysts said that despite the "typical noise" around management changes, a refreshed leadership could be welcomed.

"Investor concerns have been building around the retail execution weakening over the past year with poor results," the bank said in a note.

Antonio Hernandez of Actinver research called the timing "unexpected but positive," especially given the company's declining margins in a competitive market. "We view favorably the company's fully hands-on approach to improve performance," he said.

Santander analysts said that while the change could create short-term stock volatility, Barrientos' strong record and familiarity with the market "should help ease concerns during this transition period."