Big Grocery Chain Kroger Needs to Take on Walmart—So It Named an Alum Its CEO

Key Takeaways

• Kroger named John Foran CEO, highlighting his prior jobs as CEO of Air New Zealand and Walmart U.S. as he prepares to take over the grocery cain.
• Foran may be inclined to focus on the basics first, but he will need to look at Kroger’s e-commerce strategy, UBS said.

Kroger is locked in a battle with Walmart in the grocery business. Now it’s bringing in a CEO trained at the retail giant to help it compete.

Kroger Co. (KR) on Monday said it named Greg Foran its CEO after an “extensive” search. The grocer said Foran helped Air New Zealand and Walmart U.S. build up their digital acumen, while overseeing 20 straight quarters of comparable domestic sales growth at Walmart (WMT).

That record may bode well for Kroger, which could use a review of its online sales strategy, UBS said in a research note Monday. Analysts said fundamental progress will take time; Foran is likely to focus on the basics, such as more competitive wages and prices, first, UBS said. The company had sought reinforce its market position by merging with Albertson’s (ACI), but that deal was blocked in late 2024.

Why This News Matters to Investors

Large traditional supermarkets are facing a number of headwinds—from the potential for falling pharmacy sales to competition from digital-focused giants and discounters alike. A number of grocers are trying to compete by keeping prices down. Kroger will plot its next course under a new CEO.

A number of Kroger’s rivals, including Walmart and Amazon (AMZN), have won over customers by focusing on e-commerce and delivery. Selling groceries is growing more competitive as discounters, such as Aldi, expand; weight loss drugs reshape shopping patterns; and pharmacy sales potentially fall in response to new government policies, Morgan Stanley said.

“The grocery wars are intensifying with e-commerce a central battleground, price investments driving heightened competition, and few industry drivers that can help relieve the pressure buildup,” its analysts said earlier this month.

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Foran "has long extolled the virtue of 'having a clean and orderly house before inviting company over,’” UBS said. “At the same time, he will need to optimize the company’s approach to e-commerce. As of now, it plans to lean heavily on logistics and platform providers like Instacart (CART), DoorDash (DASH) and Uber (UBER). Not having full control of the interaction point with the consumer could create risk in the future, especially as changes like agentic commerce continue to take shape.”

Kroger has struggled in this environment, though company shares have largely remained resilient, holding up last spring when former CEO Rodney McMullen resigned in the wake of a probe into his conduct. Kroger’s revenue missed consensus analyst estimates for six straight quarters, according to Visible Alpha.

Kroger shares were recently up 5%, putting them 10% above where they were a year ago.

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