Board member Ronald Sargent will serve as chairman and interim
CEO, effective immediately.
Sargent has been on Kroger's board since 2006 and has served as
the lead director of the company since 2017. He's worked in
several roles at the grocery chain across stores, sales,
marketing, manufacturing and strategy. Sargent is also the
former Chairman and CEO of Staples.
McMullen, 64, began his career with Kroger in 1978 as a
part-time stock clerk and bagger at a store in Lexington,
Kentucky. He worked his way up through the company, becoming
chief financial officer in 1995 and chief operating officer in
2009. McMullen was named Kroger's CEO in 2014 and became the
company's chairman the following year.
Cincinnati-based Kroger said its board was made aware of the
situation on Feb. 21 and immediately hired an outside
independent counsel to conduct an investigation, overseen by a
special board committee.
The company said that McMullen’s conduct is not related to its
financial performance, operations or reporting, and did not
involve any Kroger associates.
Kroger will conduct a search for its next CEO, with Sargent
agreeing to remain as interim CEO until someone is appointed to
the role permanently.
Kroger shares fell nearly 3% Monday.
McMullen’s departure comes as Kroger is regrouping from its
failed effort to merger with Albertsons. The two companies
proposed what would have been the largest supermarket merger in
U.S. history in 2022, saying they needed to combine forces to
better compete with rivals like Walmart.
But two judges halted the $24.6 billion deal in December, saying
it was likely to lessen competition and raise prices. Albertsons
later sued Kroger, saying it had failed to make every effort to
ensure that the merger would win regulatory approval.
Also Monday, Boise, Idaho-based Albertsons said its CEO Vivek
Sankaran plans to retire May 1. Susan Morris, Albertsons'
executive vice president and chief operations officer, will
replace Sankaran, the company said.
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