Feb 9 - Kroger Co.'s shares rose about 6% in premarket trading on Monday after reports said the supermarket operator has selected Greg Foran, a former Walmart executive, as its next chief executive officer. The development follows the removal of Rodney McMullen last March after a board investigation concluded his personal conduct was "inconsistent" with certain company policies.
People familiar with the situation told reporters the company could make a formal announcement as soon as Monday. Foran, a native of New Zealand, most recently served as chief executive of Air New Zealand for roughly five years until October 2025. Prior to that role, he was president and CEO of Walmart's U.S. operations.
The hire would place Foran at the helm of Kroger as the grocer contends with soft consumer demand for even staple items and mounting competition from rivals, including Walmart. Under McMullen's leadership, which spanned about 11 years, Kroger's stock price more than tripled in value.
Commenting on the potential leadership change, Evercore ISI analyst Michael Montani said: "(We) believe he (Foran) brings instant credibility to Kroger after his demonstrated success turning around Walmart U.S. store operations," underscoring investor expectations that operational experience could be a key factor in restoring confidence.
The reported selection comes after a period of management transition at Kroger. McMullen's departure last year followed the board's investigation into his conduct and the conclusion that it did not align with company policy. The new CEO would inherit a business navigating constrained consumer spending and an increasingly competitive grocery sector.
Market reaction in premarket trading suggested investors viewed the report as constructive for Kroger's near-term outlook, at least in terms of leadership credibility. That view is tempered by the larger operating environment the company faces, with pressure on consumer budgets and rival retailers vying for market share.
Summary
Reports that Greg Foran has been chosen as Kroger's next CEO prompted a roughly 6% premarket share gain. Foran's background includes leadership roles at Walmart U.S. and Air New Zealand. The appointment would follow Rodney McMullen's removal after a board review of his personal conduct.