FILE PHOTO: Wal-Mart CEO Doug McMillon (C) is applauded after he spoke at the company's annual meeting in Fayetteville, Arkansas, June 5, 2015. REUTERS/Rick Wilking/File Photo

(Reuters) -Walmart on Friday announced that CEO Doug McMillon will retire next year and will be succeeded by insider and company veteran John Furner at a time when retailers navigate new challenges such as artificial intelligence and global tariffs.

Walmart shares were down nearly 2% in early trading, as some analysts noted McMillon's retirement could have come earlier than expected. McMillon has led the world's largest retailer for over a decade.

Here are some reactions to Walmart's CEO change:

SCOT CICCARELLI, ANALYST AT TRUIST SECURITIES

"McMillon, now 59 years old, has been incredibly successful as he has orchestrated one of the biggest turnarounds in U.S. corporate history. Thus, it is difficult to argue that he won't be missed."

"Furner is taking over one of the most desirable seats in corporate America and, in our view, just needs to continue to execute against the game plan they have already put in place."

STEVEN SHEMESH, ANALYST AT RBC CAPITAL MARKETS

"McMillon has been a transformational leader who embraced technology to modernize WMT's operating model and strengthen its long-term competitive positioning ... We view today's announcement as normal succession planning and not in any way related to near-term results."

"We do not anticipate any execution lapses throughout the transition ... We'd argue that WMT has one of the deepest leadership benches in our coverage universe, which should put investors at ease throughout this transition."

JOSEPH FELDMAN, ANALYST AT TELSEY ADVISORY GROUP:

"While it should be a smooth transition, investors will be sad to see McMillon depart, given how much he has done to transform and fuel the business."

JUSTIN MCAULIFFE, RESEARCH ANALYST AT GABELLI FUNDS

"Some aspects of Doug McMillon's legacy will be leading the company through its investment in technology, which laid the foundation for the omnichannel transformation, expanding internationally and elevating the in-store experience."

"John Furner has worked his way up through the company just like Doug McMillon and has been at Walmart for more than three decades. It looks like Walmart likes to groom future leadership through serving as CEO of Sam's Club and then CEO of either Walmart U.S. or International, so John has followed a proven path to being named CEO."

CHUCK GROM, ANALYST AT GORDON HASKETT

"We think this was a smart move by the board, although we also thought current Walmart International CEO Kath McLay could have been a good fit as well."

SUZY DAVIDKHANIAN, ANALYST AT EMARKETER

"Doug McMillon's decision to retire comes as Walmart is in one of its strongest positions in years ... It's a stable handoff amid an otherwise volatile environment."

NEIL SAUNDERS, MANAGING DIRECTOR OF RETAIL AT GLOBALDATA

"We do not know the reasons Doug has decided to step down. It is possible he has other ambitions, in politics for example, but that remains to be seen."

"Shares are likely to fall a bit as the market is very comfortable with Doug and impressed by his leadership - so any change makes investors a little nervous."

ADAM SARHAN, CEO OF 50 PARK INVESTMENTS IN NEW YORK

"This is just another CEO retiring after a decent tenure. He's been around for a while ... his stock is matching the S&P and to me, this is just a normal retirement."

(Compiled by Neil J Kanatt, reporting by Savyata Mishra, Juveria Tabassum, Chandni Shah and Johann M Cherian in Bengaluru; Editing by Anil D'Silva)