Major supermarket rivals Albertsons and Kroger have both announced top leadership changes following their failed US$25-billion merger three months ago.
Kroger CEO Rodney McMullen (pictured left) resigned two days ago after an investigation into personal conduct not in line with the company’s ethics policies. No additional details have surfaced yet, but a corporate statement claims the transgression isn’t related to performance, operations or reporting. In the interim, McMullen has been replaced by Ronald Sargent, a Kroger board member since 2006.
Meanwhile, Albertsons CEO Vivek Sankaran (pictured right) is retiring in May, having headed up the Idaho-based grocery chain since 2018. He’ll be succeeded by EVP and COO Susan Morris, who’ll also take his seat on the board.
Sankaran and McMullen oversaw a two-year merger process between Albertsons and Kroger that was ultimately blocked by the Oregon District Court and Washington State Court because it would have reduced competition in the marketplace. Albertsons filed a lawsuit against Kroger for breach of contract in December last year, claiming the merger was stalled by Kroger and that the company failed to take any action to secure approval from the courts. If Albertson’s suit is successful, Kroger will face up to US$600 million in termination fees and billions more in damages.
Kroger owns more than 2,720 supermarkets across the US, compared to 2,200-plus stores operated by Albertsons.