Kroger Names Former Walmart Exec as its New CEO

Kroger named former Walmart executive Greg Foran as its chief executive officer on Monday, 11 months after the abrupt resignation of its previous CEO. Foran led Walmart's U.S. division for six years before departing in 2019. While there, he introduced online ordering and pickup, and accelerated Walmart's digital capabilities. Foran succeeds Ron Sargent, who has been Kroger's interim leader since former CEO Rodney McMullen resigned last March. McMullen had been Kroger's CEO since 2014 and was also the company's chairman.

Total Retail's Take: Kroger is banking that Foran's past experience (and success) transforming Walmart from a traditional brick-and-mortar retailer into a leading omnichannel and digital organization will be replicable at the Cincinnati-based grocery chain. Kroger has been challenged since its failed merger with Albertsons, however, its decision to bring in Foran to lead the organization's turnaround is being met positively by investors. Shares of The Kroger Co. rose 6 percent before the opening bell Monday after Kroger said Foran would lead the company.

However, Foran is returning to the grocery sector at a time of rising competition and expansion. Traditional grocers are seeking ways to reinvent themselves to better compete with emerging digital players in the space, including Foran's former employer, Walmart. Kroger must blend the strengths of its significant physical footprint (nearly 2,800 stores) with the digital capabilities that today's consumers have come to expect. Getting that right will be integral to a successful tenure at Kroger for Foran.