Kroger and Albertsons — the largest online grocery retailers in the U.S. — are each bringing in a new CEO.
Although the circumstances differ for each, the grocery store operators are both parting ways with their top executives just months after a federal judge blocked a Kroger-Albertsons merger that had been pending regulatory approval for about two years. The proposed $25 billion merger would have reshaped the Food & Beverage industry in the U.S., online and offline.
Kroger announced March 3 that CEO Rodney McMullen resigned following an investigation into his personal conduct by its board. Although the conduct was “unrelated to the business,” it was inconsistent with Kroger policy on business ethics, the company said. McMullen had been CEO since January 2015.
The same day, Albertsons announced its CEO successor following the planned retirement in May of current chief executive Vivek Sankaran. Sankaran has been with Albertsons for six years.
Kroger ranks No. 6 in the Top 2000, and Albertsons is No. 19. The Top 2000 Database ranks North America’s top online retailers by their annual ecommerce sales.
What happened to the Kroger and Albertsons CEOs?
Effective immediately, Kroger announced its lead director of the board, Ron Sargent, will serve as chairman and interim CEO, taking McMullen’s place in both roles. Also effective immediately, the company’s board announced its new lead independent director is Mark Sutton.
Ron Sargent, interim CEO, Kroger
This comes just days before the company reports its fiscal Q4 and full-year 2024 earnings results on March 6.
Kroger said it became aware on Feb. 21 of “certain personal conduct” from McMullen and “immediately retained outside independent counsel to conduct an investigation.” It added that his conduct was not related to the company’s financial performance, operations or reporting, and that it did not involve any Kroger associates.
The Kroger board then formed a search committee to find a replacement while Sargent fills the CEO role in the interim period.
Meanwhile, Albertsons had already planned to replace its CEO, whose planned retirement is just months away. Sankaran’s planned retirement becomes effective May 1.
“Over the past several years, the Board has engaged in a thoughtful and comprehensive succession planning process to identify Albertsons Cos.’ next CEO, including evaluating internal and external candidates,” said Jim Donald, chair of Albertsons’ board of directors, in a statement.
Donald also thanked Sankaran for his leadership over the past six years, including “successfully managing Albertsons Cos.’ response to the COVID-19 pandemic and navigating the Company through challenging industry dynamics.”
Who are the new Kroger and Albertsons CEOs?
Sargent has been on Kroger’s board of directors since 2006. He has also served as lead director since 2017.
Susan Morris, incoming CEO, Albertsons
“As interim CEO, I am committed to working alongside our proven and experienced management team and dedicated associates to ensure Kroger continues providing exceptional value for our customers,” Sargent said in a statement.
Sargent also serves on the boards of Wells Fargo & Company and Five Below, Inc.
At Albertsons, Susan Morris, currently executive vice president and chief operations officer, will assume Sankaran’s CEO role. The two will work closely together, the company said, and Morris will replace Sankaran on the company’s board upon his retirement.
“At a time of profound change for the grocery industry, I am honored to be appointed as the next CEO of Albertsons Cos.,” Morris said. “I have worked closely with Vivek and the leadership team on our plans to accelerate growth and am confident that we are on the right path with our Customers for Life strategy.”
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