—
Source: Fortune.com
Summary
Kroger has hired Greg Foran, former CEO of Walmart U.S. and Air New Zealand, as its new chief executive. Foran is known for his hands-on style and high standards, which revitalized Walmart’s grocery business. He replaces Rodney McMullen, who resigned abruptly last year due to an undisclosed ethics violation. Kroger shares rose 8% on the news. Foran will bring fresh perspectives to the company, which has been struggling with cash-strapped consumers and a failed merger with Albertsons.
Our Reading
The numbers tell one story.
Kroger’s revenue is $147 billion, and it’s been a hot mess lately. The company has been trying to figure out how to attract cash-strapped consumers battered by inflation. Foran’s hiring is a clear signal that Kroger is trying to turn things around.
Foran’s approach is all about culture and behavior. He focuses on basic but crucial touches, like widening aisles in the food departments, and adding space for fresh food. He also raised pay for hundreds of thousands of workers and re-emphasized customer service.
Foran’s folksy management style was on display at Air New Zealand, where he learned the ropes by serving as a flight attendant on a few flights.
One sentence that reframes the situation is: “The CEO’s new job is to shake up the culture and make major moves.”
Author: Evan Null
