Kroger CFO Leaving for another public company

[storewanderer]

Unknown where he is going.

Pretty sure he was to be the CFO of the larger merged entity. He joined Kroger in 2008.

[arizonaguy]

Unknown where he is going.

Pretty sure he was to be the CFO of the larger merged entity. He joined Kroger in 2008.

I read he is going to Costco.

https://www.cfo.com/news/kroger-cfo-mil ... til%202025.

[pseudo3d]

He probably would've dealt with Kroger's increased debt loa, but I guess now we'll never know.

[marketreportblog]

Right, and the coverage hasn't really said whether this has anything to do with the merger. But to me, it's hard to see how the two aren't related in some way, even if distant. The person who was named as the second-in-command of what was to be the largest supermarket chain in the US quit that job? I have a hard time believing it was simply that the Costco job was a better fit.

[storewanderer]

Right, and the coverage hasn't really said whether this has anything to do with the merger. But to me, it's hard to see how the two aren't related in some way, even if distant. The person who was named as the second-in-command of what was to be the largest supermarket chain in the US quit that job? I have a hard time believing it was simply that the Costco job was a better fit.

Internally there must be a lot of respect for Costco within Kroger...

Is Plan B a Kroger/Costco merger when the Albertsons one fails?

[pseudo3d]

Right, and the coverage hasn't really said whether this has anything to do with the merger. But to me, it's hard to see how the two aren't related in some way, even if distant. The person who was named as the second-in-command of what was to be the largest supermarket chain in the US quit that job? I have a hard time believing it was simply that the Costco job was a better fit.

Internally there must be a lot of respect for Costco within Kroger...

Is Plan B a Kroger/Costco merger when the Albertsons one fails?

Is either company in financial trouble? Both of those seem like at odds with each other. The big question is what happens to Albertsons.

[storewanderer]

Right, and the coverage hasn't really said whether this has anything to do with the merger. But to me, it's hard to see how the two aren't related in some way, even if distant. The person who was named as the second-in-command of what was to be the largest supermarket chain in the US quit that job? I have a hard time believing it was simply that the Costco job was a better fit.

Internally there must be a lot of respect for Costco within Kroger...

Is Plan B a Kroger/Costco merger when the Albertsons one fails?

Is either company in financial trouble? Both of those seem like at odds with each other. The big question is what happens to Albertsons.

I am actually not too happy to see this Kroger CFO leaving Kroger. Part of why I have been wishy washy about if I am against this merger is because of my confidence in Kroger management running the combined company.

I see no scenario in which the exit of the Kroger CFO helps the merger. If anything like you say above it raises more questions. Costco is a best in class retailer and this CFO was not a lifetime Kroger person but he joined Kroger in 2008 so he wasn't just some new recruit who jumps companies every few years.

I don't necessarily think the Albertsons management is bad but I fear if they ran the combined company they'd let the Safeway ways of doing things, notably things like pricing and SKU mix, infect the merged entity. I think the Kroger people know better the various pitfalls of Safeway and why they've been killing Safeway in so many markets for the past 15 years and will avoid letting those bad Safeway ways infect the rest of Kroger. I'm not sure the current Albertsons people fully understand the pitfalls of Safeway (Bob Miller seemed to understand them); maybe the Jewel people do since they watched Dominicks implode... not sure about any others.

[retailfanmitchell019]

Internally there must be a lot of respect for Costco within Kroger...

Is Plan B a Kroger/Costco merger when the Albertsons one fails?

Is either company in financial trouble? Both of those seem like at odds with each other. The big question is what happens to Albertsons.

In 2018, some Forbes analysts talked about the idea that Alibaba should buy Albertsons. I don’t see that happening considering the US government would not approve of a Chinese company buying a US retailer, no matter what party is in charge.

[storewanderer]

Internally there must be a lot of respect for Costco within Kroger...

Is Plan B a Kroger/Costco merger when the Albertsons one fails?

Is either company in financial trouble? Both of those seem like at odds with each other. The big question is what happens to Albertsons.

In 2018, some Forbes analysts talked about the idea that Alibaba should buy Albertsons. I don’t see that happening considering the US government would not approve of a Chinese company buying a US retailer, no matter what party is in charge.

I don't think they would have the funding to do it at this point. However I think the US Government would probably allow it. There would be a lot of fighting but ultimately it would be allowed to happen.

Smithfield is the largest US pork producer and it was acquired by a company from China in 2013- there was a lot of fighting but it was allowed to happen. The political climate in 2013 wasn't terribly different from now, some different players but same old infighting. The ownership group is actually looking to IPO it again... they've managed it well.

Objectively speaking these companies from China... are actually pretty smart businesspeople. I'd rather see companies stay US owned obviously... but Smithfield has worked out fine.

I also expect any hint of Alibaba buying Albertsons and certain states Albertsons operates in will pass laws prohibiting foreign ownership of retail supermarkets somehow (this may be an issue for some other operators...)... not sure how specific they could make it to target China. Some states did this after Smithfield was bought- making it illegal for these foreign interests to purchase any additional farmland in their states.

[mbz321]

And Costco Culture will continue to erode.