CarMax taps former IHG chief Keith Barr as CEO

Feb 12 (Reuters) - CarMax KMX.N on Thursday named Keith Barr as its next chief executive, who will take over the helm at the used-car retailer as it navigates a turnaround plan and lower demand.

Shares of the company were down more than 5% in early trading.

Barr, a veteran from the hospitality industry, most recently served as the top boss at InterContinental Hotels Group IHG.L. He takes charge effective March 16.

CarMax has to navigate a choppy used vehicle market amid a nationwide dip, as cash-conscious buyers hold on to their older cars for longer.

It has relied on initiatives including some job cuts to soften a blow from lower demand and margin pressures, as inflationary headwinds continue to weigh on buyers.

Jeff Lick, an analyst at Stephens, said the appointment may temper takeover speculation, but noted Barr's lack of auto retail turnaround experience.

During the third quarter, the company's interim CEO, David McCreight, said "It is clear CarMax needs change."

CarMax's earlier CEO, Bill Nash, stepped down in November amid a broader leadership shake-up.