The CEOs of both Kroger Co. and Albertsons Companies Inc., the two grocery giants that were involved in a failed mega-acquisition attempt, are both leaving their respective companies.
Cincinnati-based Kroger announced Monday morning that Rodney McMullen resigned from the company “following a board investigation of his personal conduct that, while unrelated to the business, was inconsistent with Kroger’s policy on business ethics.”
The company did not explain what the investigation found.
Lead Director Ronald “Ron” Sargent has been appointed interim CEO, effective immediately.
Boise-based Albertsons also announced the “planned retirement” of CEO Vivek Sankaran on Monday, effective May 1.
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Susan Morris, COO and executive vice president will become CEO following Sankaran’s retirement.
“It has been a privilege to lead Albertsons Cos. through a critical period of evolution and I couldn’t be more confident in the company’s future with Susan at the helm,” Sankaran said in a statement. “Susan embodies the best of Albertsons Cos.’ culture, with a strong track record of leading and building high performance teams. I have no doubt in her ability to usher in a new phase of growth and improve our value proposition with customers and the communities where we operate.”
In December, two judges ruled against Kroger’s $25 billion takeover bid for Albertsons, which would have resulted in 100 Arizona stores being sold.
U.S. District Court Judge Adrienne Nelson in Portland, Oregon, granted a preliminary injunction to block the deal. After that, King County Superior Court Judge Marshall Ferguson ruled against the deal and issued a permanent injunction against the merger for the state of Washington.
Fry’s Food Stores, which is owned by Kroger, has the most stores and largest market share of any grocer in the Phoenix metro, according to research done by Chain Store Guide. Fry’s had 93 stores in Maricopa and Pinal counties and a market share of 28.3% in early 2024, according to the research.
Albertsons and Safeway, which are both owned by Albertsons, had a total of 76 stores in the metro, and Safeway had a market share of 9.87% and Albertsons held 4%.
If the merger had been allowed, Kroger planned to sell 600 of the stores it acquired nationally, including 101 in Arizona.
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