Leadership Changes at Albertsons and Kroger Following Failed Merger

In a significant shift within the grocery industry, both Albertsons Companies and The Kroger Company are navigating leadership changes in the wake of their unsuccessful $24.6 billion merger attempt. Albertsons, the second-largest supermarket chain in the United States, announced that its Chief Executive Officer, Vivek Sankaran, will retire on May 1. He will be succeeded by Susan Morris, the current executive vice president and chief operations officer. Additionally, Morris will join Albertsons’ board of directors.

Vivek Sankaran has been at the helm of Albertsons since April 2019, having previously served as CEO of PepsiCo Foods North America. Susan Morris has been with Albertsons since January 2018, initially serving as executive vice president of the East region before her promotion to COO. Her appointment as CEO is part of a well-thought-out succession planning process, as noted by the company’s chairman, Jim Donald.

“Over the past several years, the board has engaged in a thoughtful and comprehensive succession planning process to identify Albertsons Companies’ next CEO, including evaluating internal and external candidates,” Donald stated. “The board is confident that Susan is the ideal person to lead the company into its next chapter of growth. With a nearly 40-year career at the company that began at an Albertsons store in the Denver market, Susan brings unmatched expertise and deep knowledge of the business. She is highly respected across the organization and industry, with a strong track record of operational success and a passion for serving our customers and communities.”

Kroger’s Leadership Shake-up

On the same day that Albertsons unveiled its leadership transition, Kroger reported that its chairman and CEO, Rodney McMullen, had resigned due to findings from a board investigation that revealed unethical personal conduct. Although unrelated to the company’s business operations, this revelation prompted Kroger to appoint lead director Ronald Sargent as the interim CEO while the company searches for a permanent replacement.

The timing of these changes is particularly noteworthy, as the nearly two-year effort to merge the two supermarket giants unraveled on the same day. On December 11, a federal court and a state court blocked the proposed merger, leading Albertsons to terminate the transaction and initiate legal action against Kroger for allegedly breaching the merger agreement. Kroger subsequently announced its decision to cancel the merger pact due to the federal injunction.

Susan Morris: A Seasoned Leader

Susan Morris has been with Albertsons since February 2010, where she has held a variety of divisional and regional leadership roles. Before joining Albertsons, Morris worked at Supervalu Inc., where she served as senior vice president of sales and merchandising. Her extensive experience within the grocery sector positions her well to lead Albertsons during a time of significant change and challenge.

“At a time of profound change for the grocery industry, I am honored to be appointed as the next CEO of Albertsons Companies,” Morris remarked. “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. I look forward to participating in the fiscal Q4 earnings call where we will discuss our strategy and provide our fiscal 2025 outlook.”

A Legacy of Growth and Adaptation

Under Sankaran’s leadership, Albertsons navigated the challenges posed by the COVID-19 pandemic and evolving industry dynamics. He was instrumental in driving continuous investment in the business and advancing the company’s “Customers for Life” omnichannel strategy. Sankaran also oversaw Albertsons’ return to the public market in June 2020.

“It has been a privilege to lead Albertsons Companies through a critical period of evolution, and I couldn’t be more confident in the company’s future with Susan at the helm,” Sankaran stated, reflecting on his tenure.

Albertsons’ Operational Footprint

Albertsons Companies operates an extensive network of 2,273 supermarkets, 1,732 pharmacies, 405 fuel centers, 22 distribution centers, and 19 manufacturing facilities across 34 states and the District of Columbia. The company’s diverse range of store banners includes Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets, and Balducci’s Food Lovers Market.

As both companies move forward, the grocery industry will be watching closely to see how these leadership changes will shape their strategies and operational directions in a competitive market.