• by Tanya Gazdik , March 3, 2025

Kroger CEO Rodney McMullen, 64, has resigned following a board investigation of his personal conduct that was unrelated to the business but “inconsistent” with Kroger's policy on business ethics. 

The company said McMullen’s conduct isn’t related to Kroger's “financial performance, operations or reporting, and it did not involve any Kroger associates.” 

The Kroger board learned about “certain personal conduct” of McMullen’s on Feb. 21 and immediately sought outside counsel to lead an investigation.

“McMullen joined Kroger as a part-time stock clerk at a store in Kentucky in 1978,” according to Chain Store Age. “He worked his way up and has held several leadership positions, including CFO. He was elected to the company’s board in 2003 and appointed CEO in 2014.”

The Kroger board has appointed lead director Ronald Sargent, who is also the former chairman and CEO of Staples, to serve as chairman and interim CEO, effective immediately.

“McMullen’s ouster follows Kroger’s failed $20 billion takeover of smaller rival Albertsons, which aimed to unite the two largest pure-play supermarket operators in the biggest grocery deal ever. The deal was blocked by a federal judge in Oregon in December,” notes The Wall Street Journal. “McMullen’s ouster comes days before Kroger is scheduled to announce its fourth-quarter results. The company said it expects two key measures—identical sales without fuel and adjusted per-share earnings—to be at the high end of its prior outlook.”

None of the many reports about his resignation included any further details about what behavior was under scrutiny.

McMullen's decision to leave was not without financial consequences. “With his exit, McMullen will not receive his 2024 bonus and is forfeiting any unvested equity awards, company filings show,” according to The Washington Post. “In 2023, his compensation package came to $15.7 million, which included stock and option awards, dividend payments, and other benefits.”

Kroger is the nation’s largest grocery chain, with more than 2,700 stores in 35 states and the District of Columbia under more than a dozen banners, including Ralphs, King Soopers, Harris Teeter and Fred Meyer. It posted $150 billion in revenue in fiscal 2023.

“The last few months have been a tumultuous time for Kroger,” according to The New York Times. “After federal and state regulators blocked Kroger’s $25 billion bid for Albertsons in December, Albertsons sued Kroger. The deal would have been the biggest grocery store merger in U.S. history and would have created a $200 billion company with 5,000 supermarkets across the country.”

Kroger shares fell nearly 3% Monday.

“Also Monday, Boise, Idaho-based Albertsons said its CEO Vivek Sankaran plans to retire May 1,” according to The Associated Press. “Susan Morris, Albertsons’ executive vice president and chief operations officer, will replace Sankaran, the company said.”