A Competitor’s Star Steps Up (Image Credits: Images.fastcompany.com)
The Kroger Co. selected Greg Foran, a former top executive at rival Walmart, to serve as its new chief executive officer.
A Competitor’s Star Steps Up
Greg Foran arrives at Kroger with deep experience from leading Walmart’s U.S. operations between 2014 and 2019. During that period, he overhauled store standards by emphasizing cleanliness, reliable inventory, and superior fresh produce offerings. His initiatives also brought online ordering and pickup services to the forefront, boosting Walmart’s digital presence significantly.
This background stands out because Walmart poses one of Kroger’s toughest challenges. The retailer’s transformation into a technology-driven powerhouse has intensified pressure on traditional grocers. Foran’s intimate knowledge of these strategies could prove invaluable as Kroger seeks to adapt.
Grocery Sector’s Cutthroat Landscape
Walmart commands about 21% of the U.S. grocery market, dwarfing Kroger’s 8.5% share, according to market research firm Numerator. Traditional supermarkets face additional threats from discount players like Aldi and Lidl, alongside Amazon’s rapid online expansion.
Kroger attempted a major defensive move in 2022 with a proposed merger alongside Albertsons. Regulators, including the Federal Trade Commission and officials in Washington and Colorado, blocked the deal in 2024. They argued it would reduce competition, potentially driving up prices and suppressing wages.
| Company | U.S. Grocery Market Share |
|---|---|
| Walmart | 21% |
| Kroger | 8.5% |
Digital Shifts and Delivery Experiments
Kroger reported a 17% increase in e-commerce sales during its most recent quarter, signaling customer demand for convenience options like delivery and pickup. The company expanded ties with third-party services such as DoorDash and Uber Eats after years of relying primarily on its own drivers.
Automated fulfillment centers met mixed results. Kroger closed facilities in Wisconsin, Maryland, and Florida in November, opting instead for store-based delivery, which proved quicker and less costly. Officials expect these changes to push the e-commerce segment toward profitability this year. Yet caution persists around technologies like digital price labels and aisle cameras linked to Microsoft, which drew scrutiny from lawmakers over potential price surges and privacy issues.
Seamless Leadership Shift
Foran replaces Ron Sargent, who managed as interim CEO since Rodney McMullen’s resignation in March. McMullen, Kroger’s leader since 2014 and also its chairman, departed following an internal probe into personal conduct unrelated to operations but breaching company ethics standards.
Sargent remains as chairman to guide the transition. He praised Foran in a statement: “Greg is a highly respected operator who knows how to run large-scale retail businesses, strengthen store execution and lead high-performing teams.” A New Zealand native, Foran most recently headed Air New Zealand, where he enhanced digital tools, handled union talks, and steered through pandemic disruptions. Kroger operates 2,731 stores under banners like Ralphs, King Soopers, Smith’s, and Fred Meyer, employing 409,000 people from its Cincinnati headquarters.
- Foran’s Walmart tenure equips him to enhance store operations and digital sales at Kroger.
- Intense rivalry from Walmart, discounters, and online giants demands swift adaptation.
- Recent tech pivots, including delivery partnerships, aim for e-commerce profitability despite hurdles.
Foran’s appointment signals Kroger’s resolve to blend proven retail execution with modern innovation amid a transforming industry. How might his strategies reshape the supermarket landscape? Share your views in the comments.
