Kroger Co. named retail veteran Greg Foran its chief executive, as the nation’s largest supermarket operator seeks to reset after a failed mega-merger and the sudden exit of its former leader.
Foran, 64, steps in as Kroger’s first external CEO after nearly a yearlong search. The Cincinnati-based retailer ousted CEO Rodney McMullen in March following a probe into his personal conduct, which came on the heels of a $24.6-billion merger with Albertsons Cos. being blocked on antitrust grounds. Since then, Kroger has been led by interim chief Ron Sargent, a longtime board member.
Foran most recently led Air New Zealand Ltd. following an eight-year stint at Walmart Inc. The appointment marks a homecoming of sorts for the New Zealand native, who is credited for turning around Walmart’s U.S. business in the mid-to-late 2010s. He sought to make Walmart stores cleaner and friendlier, in addition to improving in-stock availability and overall appearance of stores. He left Air New Zealand in October.
The hiring of Foran would be an “incremental positive” to the investment case for Kroger after his experience improving results at Walmart, Morgan Stanley analyst Simeon Gutman wrote in a research note to clients. But Foran does inherit a more complex operation, with Kroger owning several retail chains — including Ralphs — compared to the single banner he oversaw at Walmart, he said.
“Foran helped to drive meaningful operational change at Walmart,” Gutman said.
Stock surge
Shares of Kroger rose as much as 6.8% in premarket trading on Monday. The stock had advanced 8% this year through Friday, compared with a gain of 1.3% for the Standard & Poor’s 500.
Kroger previously said it expected to name an external CEO in early 2026. Foran will join Kroger’s board, with Sargent remaining as its chair.
The retailer has posted healthy sales in recent years, as price-sensitive consumers prioritize groceries and other necessities to save money. Under Sargent, it has been accelerating new store openings, closing underperforming ones and updating other priorities. Last year, it cut nearly 1,000 corporate jobs and brought headquarters employees back to its offices five days a week. The retailer is also seeking to improve e-commerce profitability, closing some fulfillment centers and instead expanding partnerships with delivery companies.
Foran, who was once called “the greatest retailer on the planet” by Walmart’s former CEO Doug McMillon, encouraged staff to move with urgency when he took over to revitalize the company’s US segment in 2014. Before Walmart, he worked at Australian grocer Woolworths Group Ltd.
At Walmart, Foran’s leadership led to three straight years of increases in quarterly same-store sales at the US division of the world’s largest retailer.
The appointment, effective immediately, is one of the latest CEO changes among U.S. retailers. New CEOs of Walmart and Target Corp. started last week.
Separately, Kroger reaffirmed its guidance for fiscal year 2025. The retailer will report quarterly earnings in March.
Kang writes for Bloomberg.
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