Kroger’s new chief speeds up operations

Kroger’s new chief executive, Greg Foran, has made speed and execution central to his early leadership. The change followed the company’s $1.7 billion cash acquisition of Giant Eagle last month.

The purchase signaled a break from the riskier approach of former CEO Rodney McMullen, whose $24.6 billion bid for Albertsons failed. Foran, who took the role in February after leading Air New Zealand and serving as Walmart U.S. CEO for six years, has focused on operational efficiency and steady growth instead.

Costs outpacing sales, execution gaps

During Kroger’s first-quarter earnings call in June, Foran stated that rising operating costs were growing faster than sales. He called the trend unsustainable and said reducing expenses was the foundation for all other goals. Plans include streamlining store operations, improving inventory management, and cutting out-of-stock items, which he described as missed sales.

“When execution slips, we fall short of our potential,” Foran said. “The difference between our best stores and the rest of the fleet needs to shrink.” To address this, Kroger will invest in better training, simpler tools, and support for store employees. He also stressed faster decision-making, arguing the company had not fully used its existing assets and talent.

The expansion strategy remains cautious. While the Giant Eagle deal expands Kroger’s presence, Foran presented it as a targeted move in high-return markets. “Competitors have kept growing while we stepped back,” he said. “Standing still in store growth means losing market share.” The company is increasing its pipeline for new locations but avoiding the large-scale bets that defined McMullen’s later years.

Price cuts and retail media

Foran admitted Kroger’s value had weakened for cost-conscious shoppers. “Customers are spending more carefully and sometimes choosing us only for promotions,” he said. “We’re seeing too many partial baskets and not enough full trips.” The company will lower prices through supplier negotiations and direct sourcing, though Foran clarified Kroger didn’t need to be the cheapest—just the most consistent in value.

“Every dollar we put toward customer value comes from cost savings and efficiency,” he said. The aim is clearer, more predictable pricing, though promotions will still play a role. “That takes discipline, and we’re working to fund it.”

Foran noted early signs of progress despite consumer pressure. “Traffic is increasing,” he said. “More customers are coming through our doors, which suggests our value message is working.”