Kroger CEO Rodney McMullen has resigned after an internal investigation found his personal conduct violated the company’s ethics policies.
Kroger confirmed the resignation in a press release, following a probe into McMullen’s behavior.
The company did not reveal details about the specific conduct but said it was unrelated to Kroger’s financial performance, operations, or reporting.
It also stated that no other Kroger employees were involved.
Ronald Sargent Steps In as Interim CEO
To manage the leadership gap, Kroger’s board appointed Ronald Sargent, a long-time board member, as interim CEO.
He said:
“As interim CEO, I am committed to working alongside our proven and experienced management team and dedicated associates to ensure Kroger continues providing exceptional value for our customers.”
Sargent has been on Kroger’s board since 2006. The search for a permanent CEO is already underway.
McMullen’s 46-Year Career Ends Abruptly
McMullen’s departure marks the end of a decades-long career at Kroger. He joined the grocery giant in 1978 as a part-time stock clerk at a Kentucky store.
Over the years, McMullen rose through the ranks, holding leadership roles including Chief Financial Officer.
In 2003, he was elected to Kroger’s board of directors. By 2014, McMullen was named CEO, where he led the company through major expansions and industry shifts.
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Fallout from Failed Albertsons Merger
McMullen’s resignation also comes just months after Kroger abandoned its $25 billion merger with rival Albertsons.
The deal collapsed after intense regulatory scrutiny, which the previous US administration strongly opposed.
The failed merger triggered a lawsuit from Albertsons, which accused Kroger of breaching their contract.
In the lawsuit, Albertsons alleged that Kroger did not make its “best efforts” to secure regulatory approval and failed to take “any and all actions” required to push the deal through.
Kroger Stock Reacts
Following the announcement of McMullen’s resignation, Kroger shares dipped about 1% in premarket trading. Investors are watching closely to see how the leadership change and the ongoing legal battle with Albertsons will affect the grocery chain’s future.
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What’s Next for Kroger?
Kroger now faces two key challenges — navigating a leadership transition and defending itself in court against Albertsons. With Ronald Sargent at the helm for now, the company must reassure shareholders, customers, and employees that its long-term strategy remains intact.
As the search for a new CEO begins, Kroger will need to focus on rebuilding trust and stabilizing its position in the competitive grocery market.
