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CINCINNATI — Kroger Co. chief executive officer Rodney McMullen has been elected chairman, taking the reins from David Dillon, who is retiring.
Kroger Co. chief executive officer Rodney McMullen has been elected chairman, taking the reins from David Dillon, who is retiring.
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Rodney McMullen |
Kroger said Thursday that Dillon will retire as chairman on Dec. 31 and that McMullen will assume the title of chairman, in addition to his current role as chief executive, effective Jan. 1. McMullen has served on the supermarket giant’s board of directors since 2003.
McMullen had succeeded Dillon as Kroger’s CEO as of the start of 2014. In announcing the succession plan in September 2013, Kroger had said Dillon would stay on as chairman until Dec. 31, 2014.
Overall, Dillon had 38 years of service at Kroger. He has served as chairman since 2004 and was CEO from 2003 to 2013. Before that, he held a variety of executive positions at Kroger and Dillons Companies, which merged in 1983.
During Dillon’s tenure as CEO, Kroger grew revenue by $45 billion, created 53,000 new jobs, cut costs for eight straight years and returned $9.2 billion to shareholders through share repurchases and dividends, the company noted. Along with McMullen, Dillon also championed Kroger’s Customer 1st strategy, which the retailer said has bolstered its connection with customers, expanded its presence in new and existing markets, and strengthened its competitive positioning.
"For Dave, Customer 1st — which truly put our customers at the center of how Kroger runs its business — was more than a successful business strategy. It was a philosophy that he believed and lived through his actions every day, and as a result he inspired thousands of our associates during his many years of service to Kroger and Dillons Companies," McMullen said in a statement. "He understood that Kroger’s greatest asset is the trust that our customers, associates and shareholders have in our company. We are all the beneficiaries of Dave’s extraordinary leadership."
Also on Thursday, Kroger announced that Nora Aufreiter, director emeritus of global management firm McKinsey & Co., has been elected to the Kroger board. She had roles of increasing responsibility during her 27 years at the firm, including serving on its global personnel committees and leading its North American Retail Practice, North American Branding service line, Toronto office, and Consumer Digital and Omnichannel service line, which she led until her retirement in June of this year.
"We are delighted to welcome Nora to Kroger," Dillon stated. "With her broad business experience and consumer and digital expertise, Nora will be a great addition to Kroger’s board."
Aufreiter is elected to serve until Kroger’s annual meeting of shareholders in June 2015. At that time, she will stand for election by shareholders.
Kroger operates 2,631 supermarkets and multidepartment stores in 34 states and the District of Columbia under two dozen local banners, including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry’s, Harris Teeter, Jay C, King Soopers, QFC, Ralphs and Smith’s. The company also operates 783 convenience stores, 325 fine jewelry stores, 1,293 supermarket fuel centers and 37 food processing plants in the United States.
