After an eleven-month search, Kroger is set to appoint Greg Foran, a former executive at Walmart and most recently the CEO of Air New Zealand, as its next chief executive officer. The appointment marks a significant shift for the supermarket giant, seeking a fresh perspective from outside its traditional leadership ranks.
The move comes after a period of leadership uncertainty at Kroger. The company had been searching for a permanent CEO since the departure of Rodney McMullen, following an undisclosed ethics violation. During the interim, Chairman Ron Sargent, formerly of Staples, steered the company through a period of cost-cutting measures aimed at lowering prices for increasingly price-sensitive consumers.
Over the past year, Kroger has implemented a series of austerity measures, including roughly 1,000 corporate job cuts, consolidation of regional divisions, and the closure of underperforming stores and e-commerce fulfillment facilities. These actions reflect a broader trend in the grocery industry, as retailers grapple with inflationary pressures and shifting consumer behavior. Despite these challenges, Kroger reported revenue of $147 billion in its 2024 fiscal year.
Kroger officials explicitly stated their intention to recruit a leader from outside the company’s Cincinnati headquarters, signaling a desire for a new strategic direction. Foran’s background appears to align with this objective. His tenure at Walmart focused on enhancing the chain’s fresh food offerings and improving the overall store experience. He then transitioned to Air New Zealand, successfully navigating the airline through the complexities of the COVID-19 pandemic and ongoing fleet maintenance issues.
Foran’s leadership at Air New Zealand was marked by a focus on resilience and customer service. He stated, “Leading Air NZ was a great privilege. I’m incredibly proud of what our people achieved together through some of the most challenging years the airline – and the country – has faced.” He emphasized the importance of a strong work ethic, customer focus, and values-based decision-making, qualities he intends to bring to Kroger.
“It’s one I will approach with a strong Kiwi work ethic, and with the benefit of lessons learned in NZ – staying close to customers and frontline teams, doing what’s right and making values-based decisions with a long-term view,” Foran said. He added that the values he cultivated in New Zealand would accompany him to his new role in the United States.
The appointment of an executive with experience in both the retail and airline industries is unusual, but analysts suggest it could be a strategic advantage for Kroger. Foran’s experience managing complex operations, navigating economic disruptions, and prioritizing customer experience could prove valuable in a rapidly evolving grocery market.
The grocery sector is currently facing a confluence of challenges, including persistent inflation, supply chain disruptions, and increasing competition from online retailers and discount grocers. Kroger, like its peers, is under pressure to balance cost control with investments in technology and customer service. The company’s recent cost-cutting measures suggest a prioritization of profitability in the short term, but Foran’s appointment signals a potential shift towards a more customer-centric and innovation-driven strategy.
Foran’s departure from Air New Zealand was announced in , with his official exit occurring in . This timing allowed him to become available as Kroger concluded its lengthy search for a new CEO.
The grocery industry will be watching closely to see how Foran’s leadership impacts Kroger’s performance and strategic direction. His experience in managing large, complex organizations, coupled with his emphasis on customer focus and values-based decision-making, could position Kroger for success in a challenging and competitive market. The appointment represents a bet on a leader who can bring a fresh perspective and navigate the evolving landscape of the American supermarket.
