New York (CNN Business) Bed Bath & Beyond, facing heavy pressure from a trio of activist investors, will replace its veteran chief executive as the struggling company attempts to survive upheaval in retail.

Steven Temares, who has been Bed Bath & Beyond's CEO since 2003, stepped down on Monday and resigned as a member of Bed Bath & Beyond's board of directors. Temares will be replaced on an interim basis by Mary Winston, former chief financial officer at Family Dollar. She will be, for now, one of the handful of Fortune 500 female CEOs.

The company's board of directors said it will form a search committee to find a permanent CEO. It will try to find a CEO who has "transformation and innovation experience" in retail.

Temares' resignation is "a necessary first step in revitalizing the fortunes of the beleaguered retailer," Neil Saunders, managing director at GlobalData Retail, said in a note to clients on Monday. Bed Bath & Beyond needs to hire a leader who can "put in place a plan to refashion the company to the modern realities of retailing."

Cluttered stores and confusing strategy

Read More