CINCINNATI (AP) — Kroger says CEO David Dillon will retire from that post when the new year begins, with President and Chief Operating Officer W. Rodney McMullen stepping into the role as part of its long-term CEO succession plan.

Dillon's retirement is effective on Jan. 1, which is also when McMullen will take over the position.

The nation's largest traditional supermarket operator said Friday that the 62-year-old Dillon will continue to serve as chairman through Dec. 31, 2014. He's served as CEO since 2003.

The 53-year-old McMullen has served as president and COO since 2008. His successor will be named at a later date.

Last week Kroger Co. reported that its second-quarter profit climbed as it booked lower charges and worked to build shopper loyalty with improved offerings.

Kroger shares slipped 2 cents to $40.97 in morning trading.