NEW YORK (AP) — Walmart CEO Doug McMillon, who turned the nation's largest retailer into a tech-powered giant since taking over in 2014, will retire in January in a surprise move.

John Furner, 51, a longtime insider and head of Walmart's U.S. operations, will take over, the company said Friday. Shares fell 3% immediately in premarket trading after the news, which was unexpected. McMillon is 59 years old.

McMillon’s retirement is effective Jan. 31, 2026. Furner will start as CEO the next day.

During McMillon's tenure as CEO, he invested heavily in its workers by increasing wages, expanding parental leave and launching a program for certificates or degrees for employees seeking education opportunities. Walmart has also lowered its prices and embraced technology like artificial intelligence to improve customer and worker experiences.

“Over more than a decade as CEO, Doug led a comprehensive transformation by investing in our associates, advancing our digital and e-commerce capabilities, and modernizing our supply chain, resulting in sustained, robust financial performance," said Walmart Chairman Doug Penner, who is the son-in-law of the Walmart's late founder Sam Walton. "He leaves Walmart stronger, more innovative, and better aligned with our purpose to help people save money and live better.”

Penner said that Furner, who started with the company in 1993, has more than 30 years in a variety of leadership roles across all three of Walmart's operating segments, including six years as the head of Walmart's U.S. business.

Since McMillon became CEO in February 2014, annual revenue has grown from $485.7 billion to $681 billion in its latest fiscal year. Its stock was hovering around $25; now it is over $102 per share.