Supermarket chain Kroger Co. (KR) said Chief Executive Officer
David Dillon will retire in January and will be succeeded by Chief
Operating Officer Rodney McMullen.
Mr. Dillon, 62, will continue to serve as chairman through the
end of 2014. Mr. Dillon, a 37-year Kroger veteran, said Mr.
McMullen has played a leadership role in every major decision the
company has made for the past 25 years, including its current
growth strategy.
Mr. McMullen, 53, joined Kroger in 1978 and has served as COO
since 2009 and as a director since 2003. He has held a variety of
leadership positions at the company, including vice chairman and
chief financial officer. Mr. McMullen's successor will be named
later, Kroger said.
Kroger, one of the U.S.'s largest grocery-store networks, has
outpaced peers like Safeway Inc. (SWY) and Supervalu Inc. (SVU) in
recent years by becoming more value-oriented ahead of the recession
and implementing a rewards program to appeal to cost-conscious
consumers. Kroger also withstood increasing competition from
nontraditional grocery outlets such as dollar stores and big-box
retailers.
The company in July unveiled plans to acquire U.S. grocery chain
Harris Teeter Supermarkets Inc. (HTSI) for $2.44 billion, which
will bring Kroger into more markets in the Southeast and give it
about 200 higher-end supermarkets. The deal is Kroger's biggest
acquisition in about 15 years.
Last week, Kroger reported its fiscal second-quarter earnings
grew 14% as the chain's identical-store sales continued to
rise.
Shares were off by 33 cents to $40.66 in premarket trading. The
stock is up 72% over the past 12 months.
Write to Nathalie Tadena at nathalie.tadena@wsj.com
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