Latest news with #RodneyMcMullen
Bloomberg
2 days ago
- Business
- Bloomberg
Albertsons Demands Details on Ex-Kroger CEO's Personal Conduct
By and Jef Feeley Save Albertsons Cos. demanded that Kroger Co. provide details on personal conduct that led the company to replace its chief executive officer, who shepherded the failed $24.6 billion takeover that's now the focus of litigation between the two companies. Earlier this year, Kroger announced that Rodney McMullen abruptly resigned after a board investigation into his behavior that was 'inconsistent' with its policy on 'business ethics,' but the company didn't elaborate.
Yahoo
08-07-2025
- Business
- Yahoo
Pardon the Disruption: Kroger and Albertsons are tightening their belts
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. Pardon the Disruption is a column that looks at the forces shaping food retail. In the more than two years they spent trying to combine, Kroger and Albertsons held off on making any deep cuts to their businesses as they looked to curry favor with regulators and consumers. But now that the supermarket megamerger isn't happening, the two chains have returned in a big way to the tough but necessary work of making their stores, supply chains and corporate operations run more efficiently. Call it making up for lost time. Kroger announced in late June that it plans to close 60 stores over the next year and a half. It promptly got to work, with local media reporting impending closures of company-owned stores across several regions. Albertsons, meanwhile, has laid off around 800 employees and shuttered close to a dozen stores so far this year, The Wall Street Journal reported. There's much more to come. Both grocers say they are looking to wring unnecessary costs out of their businesses and better focus their efforts on high-performing products and services. Albertsons is in the process of cutting $1.5 billion over a three-year period, while Kroger is looking to bring more discipline to its investments and cost structure. 'We're going to modernize operations and ways of working across the board, from corporate to our stores and supply chain, to work smarter and more efficiently,' Kroger CFO David Kennerly said during the company's earnings call at the end of June. Instead of popping champagne, the nation's largest supermarket chains are cutting deep so that they can continue battling the very forces that spurred their attempted merger. They are also suing each other over who's to blame for the deal going up in flames. The belt-tightening that both companies have embraced this year comes as no surprise, and it will go a long way toward keeping prices down and staying competitive. But Kroger and Albertsons can't just hack and slash their way to a more compelling grocery experience. That's going to take innovation and risk-taking. How will these supermarket giants beat the growing threat that low-price and specialty retailers pose? Here are three things I'll be watching in the months ahead. Both Kroger and Albertsons will forge ahead with new leadership at the helm. For Kroger, that new leader has yet to be identified four months after former CEO Rodney McMullen resigned following an ethics review. Ron Sargent, who became interim CEO in March, said Kroger's board of directors has formed a search committee and is currently working with a nationally recognized search firm to identify candidates. As I wrote earlier this year, Kroger's next permanent CEO will have a lot of challenges to address, including labor unrest, mounting industry competition, an overly complex e-commerce network and a brand campaign that's starting to feel stale. The role also offers an opportunity to transform the conventional grocery model, and Kroger would do well to name someone with an innovative spirit. Albertsons, on the other hand, has its new leader in Susan Morris, the former operations chief who took over for Vivek Sankaran in May. She's coming into the CEO role at a difficult time. During the merger trial, lawyers painted Albertsons as a company with a bleak future. Since then, speculation has swirled about Albertsons eventually finding another suitor. But Morris told The Wall Street Journal the company has no plans to sell. She said she wants to make Albertsons leaner and negotiate more forcefully with suppliers. She also sees opportunities to expand its leading retail media network and improve key areas like produce, private label and its loyalty program. Morris told the Journal that Albertsons' specialty is one-stop shopping. That may be true, but a lot fewer consumers are shopping this way than when Morris joined the company nearly 40 years ago. Albertsons needs to figure out how to be an important stop for today's shop-around consumers. Kroger's online business has been growing at a healthy clip. During its first fiscal quarter this year, e-commerce sales increased 15%, with delivery driving a growing number of households to engage digitally with the grocer. That's well ahead of the overall sales growth rate in digital across the industry. But e-commerce remains an unprofitable business for Kroger — and that needs to change, Sargent said during the company's first-quarter earnings call. 'Our customers are embracing the whole digital model of our business. We are seeing improvements in profitability at an increasing rate. But to be clear… we're not profitable at this point,' he said. That's an understandable goal, and one that comes at a time when fierce competitor Walmart says its online business is now profitable. Trouble is, Kroger seems to be a long way off from achieving this, with Sargent noting: 'We still have a lot of work to do.' The 800-pound gorilla in the room is Kroger's network of automated fulfillment centers and spoke facilities powering its delivery service. This network needs to build scale and serve high levels of demand to achieve its full value, but right now Kroger and its fulfillment technology partner, Ocado, seem to be stuck figuring out how to make these facilities work for shoppers and Kroger's bottom line. Kroger and Albertsons have had a strong track record of innovation over the past several years. Both companies ramped up retail media and embraced trends like quick delivery, ghost kitchens and online marketplaces. While some of these bets didn't pan out, their nimbleness and willingness to learn have been encouraging at a time of rapid evolution across retail. Will that spirit of innovation diminish as the companies push for greater efficiency? That already seems to be happening, with neither company making the sort of eye-grabbing announcements in recent months that it used to. I understand pulling back on e-commerce innovation, given how demand has moderated in that channel over the past two years. But Kroger and Albertsons need to take bold steps in areas that are key to their associates and in-store shoppers, including meal solutions, loyalty programs and employee services. I live in an area that's packed with QFC, Fred Meyer and Safeway stores, and I can tell you that none of them come to mind when I think, 'What's for dinner?' All of these locations carry prepared meals, salad kits, packaged sushi and more, but the selections are usually uninspiring and merchandised in out-of-the-way areas that make it feel like the companies are checking boxes rather than trying to entice shoppers. Kroger and Albertsons both have paid digital membership programs, but they pale in comparison to the bevy of perks part of Walmart+ or Amazon Prime. Will Kroger and Albertsons expand these programs to provide more perks? The nation's largest supermarket chains' latest cuts show they understand the importance of playing defense in this ever-evolving, crazily competitive industry. Their bold merger attempt showed a willingness to play offense, and they should keep that competitive fire burning. Recommended Reading Kroger looks to cut costs as it chases growth Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Los Angeles Times
30-06-2025
- Business
- Los Angeles Times
Some Ralphs and Food 4 Less stores to close in the next year and a half
Under a Kroger plan, California grocery shoppers will have dozens fewer Ralphs and Food 4 Less stores to choose from. Kroger, the parent company of the California-based grocers, announced its plan to permanently shutter 60 stores in an earnings report for last quarter. Will it be a location near you? There's no news yet on which stores would be affected. But under the plan, some Californians will be dealing with the loss of their neighborhood market. The reason for the closings is the year-over-year loss of millions in earnings. The grocery giant reported net earnings of $866 million for the first quarter of 2025, down from $947 million during the same period last year. The closures represent a $100-million loss for the company but will lead to a 'modest financial benefit,' the company said. It also said employees working at the affected stores would be offered jobs at other locations. Combined, there are 272 Ralphs and Food 4 Less locations across the state. The planned closures come amid a tumultuous period for Kroger. Rodney McMullen, the company's former chairman and chief executive, abruptly stepped down in March following a probe by the company's board into his personal conduct. The company was mum on details but said this alleged conduct did not involve Kroger workers. Earlier this month, about 45,000 employees at Kroger and Albertsons authorized a strike to protest what they call unfair labor practices. They haven't walked off the job yet. But if they do, it would cause major disruption for two of the nation's largest grocery chains. The company was also involved in a failed $25-billion merger with rival Albertsons late last year after a judge halted the deal. It would've been the largest supermarket merger in U.S. history. As my colleague Queenie Wong reported in December, the Federal Trade Commission, California and several other states sued to stop the deal, arguing the merger would decimate competition in many parts of the country and leave customers at the mercy of a newly formed behemoth that could drive up prices. Also last year, Kroger finalized a $122-million settlement with California to resolve lawsuits over the company's alleged role in the opioid crisis and how its pharmacies dispensed prescription painkillers to customers. The payment finalized a deal Kroger struck in 2023 to settle nearly all the opioid-related claims filed against it. Although the company didn't admit to any wrongdoing or liability in the settlement, it did agree to pay nearly $1.4 billion over 11 years to California and other plaintiffs. Today's great photo is from Times photographer Christina House at the Getty Villa, which reopened Friday for the first time since January's devastating Palisades fire. Kevinisha Walker, multiplatform editorAndrew Campa, Sunday writerKarim Doumar, head of newsletters How can we make this newsletter more useful? Send comments to essentialcalifornia@ Check our top stories, topics and the latest articles on
Yahoo
25-06-2025
- Business
- Yahoo
Kroger, the company behind Ralphs and Food 4 Less, plans to close 60 locations
Kroger, the parent company of California-based grocers Ralphs and Food 4 Less, plans to close 60 stores over the next 18 months. The company announced the upcoming closures in an earnings report for last quarter, but did not specify which locations or brands would be shuttered. Kroger also owns Harris Teeter, King Soopers and other U.S. grocery chains. The closures represent a $100-million loss for the company but will lead to a "modest financial benefit," the company said. Employees working at the affected stores will be offered positions at other locations. Read more: $25-billion Kroger-Albertsons merger plan is blocked by federal judge A spokesperson for the company did not immediately respond to a request for comment. There are 182 Ralphs locations and 90 Food 4 Less locations across California, according to the chains' websites. Both chains are headquartered in Compton. The planned closures come amid a period of turmoil for Kroger, which is valued at $48 billion and has seen an 18% jump in share prices this year. The company's former chairman and chief executive, Rodney McMullen, abruptly stepped down in March following a probe into his personal conduct. Kroger was also involved in a failed $25-billion merger with grocery giant Albertson's. The deal was blocked by a federal judge late last year. Earlier this month, about 45,000 employees at Kroger and Albertsons authorized a strike to protest what they call unfair labor practices. They have not yet walked off the job. Read more: Albertsons, Kroger workers authorize strike, protesting unfair labor practices Kroger reported net earnings of $866 million for the first quarter of 2025, down from $947 million during the same period last year. Total company sales were $45.1 billion for the quarter, compared to $45.3 billion last year. Kroger shares fell 1% Tuesday to close at $73.42. Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Los Angeles Times
24-06-2025
- Business
- Los Angeles Times
Kroger, the company behind Ralphs and Food 4 Less, plans to close 60 locations
Kroger, the parent company of California-based grocers Ralphs and Food 4 Less, plans to close 60 stores over the next 18 months. The company announced the upcoming closures in an earnings report for last quarter, but did not specify which locations or brands would be shuttered. Kroger also owns Harris Teeter, King Soopers and other U.S. grocery chains. The closures represent a $100-million loss for the company but will lead to a 'modest financial benefit,' the company said. Employees working at the affected stores will be offered positions at other locations. A spokesperson for the company did not immediately respond to a request for comment. There are 182 Ralphs locations and 90 Food 4 Less locations across California, according to the chains' websites. Both chains are headquartered in Compton. The planned closures come amid a period of turmoil for Kroger, which is valued at $48 billion and has seen an 18% jump in share prices this year. The company's former chairman and chief executive, Rodney McMullen, abruptly stepped down in March following a probe into his personal conduct. Kroger was also involved in a failed $25-billion merger with grocery giant Albertson's. The deal was blocked by a federal judge late last year. Earlier this month, about 45,000 employees at Kroger and Albertsons authorized a strike to protest what they call unfair labor practices. They have not yet walked off the job. Kroger reported net earnings of $866 million for the first quarter of 2025, down from $947 million during the same period last year. Total company sales were $45.1 billion for the quarter, compared to $45.3 billion last year. Kroger shares fell 1% Tuesday to close at $73.42.
