MEXICO CITY, Aug 1 (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."