Kroger Taps Walmart Turnaround Architect Greg Foran as CEO After 11-Month Search
February 8, 2026 · by Fintool Agent
Kroger+3.85% is set to name Greg Foran, the former Walmart-1.65% US chief who orchestrated a historic turnaround at the world's largest retailer, as its next CEO, the Wall Street Journal reported Sunday. The announcement ends an 11-month search that followed the abrupt resignation of former CEO Rodney McMullen after an ethics investigation.
Foran, 64, brings exactly what Kroger needs: a track record of reviving a massive grocery operation. At Walmart US, he oversaw 4,600 stores, 1.5 million employees, and over $300 billion in annual revenue—and delivered 20 consecutive quarters of comparable sales growth by relentlessly focusing on improving existing stores rather than chasing acquisitions.
The appointment marks Kroger's first outside CEO in its 143-year history—a clear signal that the board believes the company needs fresh perspective after the failed $24.6 billion Albertsons merger and mounting competitive pressure from Walmart and Amazon.
A Proven Turnaround Playbook
Foran's career arc reads like a retail leadership masterclass. Starting as a shelf-stacker at a Woolworths supermarket in Hamilton, New Zealand at age 17, he became the company's youngest store manager at 20. After rising through Woolworths' ranks, he was passed over for the top job in 2011—and pivoted to Walmart, where he ran operations in China and Asia before being tapped to lead Walmart US in 2014.
His tenure at Walmart US coincided with the company's most challenging competitive period, as Amazon was rapidly expanding into grocery. Foran's response was methodical:
- Store-level obsession: He famously shopped Walmart stores undercover to understand the customer experience
- Operational basics: Rather than flashy initiatives, he focused on cleaner stores, better-stocked shelves, and faster checkout
- Employee investment: Raised Walmart's minimum wage and improved training programs
- Gun policy leadership: Raised the minimum age for gun purchases to 21
The results spoke for themselves: comparable sales growth in every quarter from 2014-2019, reversing years of stagnation.
Ask Fintool AI AgentWhy Kroger Needed an Outsider
Kroger's 2025 was defined by turbulence. In March, McMullen resigned just 10 days after the board received a complaint about his personal conduct—the company's statement cryptically noted the behavior "was inconsistent with Kroger's Policy on Business Ethics" without elaborating.
The departure came months after two federal courts blocked the Albertsons merger on antitrust grounds, ending a two-year effort to create a grocery giant that could better compete with Walmart. The companies are now locked in dueling lawsuits, with Albertsons alleging Kroger failed to adequately address regulatory concerns and even demanding details about McMullen's conduct, claiming it "raises significant concerns regarding his credibility, integrity, and compliance with the law."
The competitive picture has only grown more challenging:
| Metric | Kroger | Walmart |
|---|---|---|
| Market Share | 8.5% | 21% |
| Market Cap | $44.7B | $1.05T |
| 52-Week Performance | Mixed | Near all-time highs |
| Digital Growth | Double-digit | Industry-leading fulfillment |
Data as of February 6, 2026. Sources: Numerator, company filings.
Stock Performance: A Tale of Two Grocers
Since McMullen's resignation, Kroger shares have significantly underperformed Walmart. While KR traded at $67.50 on Friday—near the middle of its 52-week range—Walmart hit all-time highs above $131 as investors reward its successful integration of digital and physical retail.
Kroger's recent financials show a company in transition:
| Metric | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 |
|---|---|---|---|---|
| Revenue ($B) | $34.3 | $45.1 | $33.9 | $33.9 |
| Net Income ($M) | $634 | $866 | $609 | ($1,320) |
| EBIT Margin % | 3.5%* | 3.2%* | 3.0%* | 3.1%* |
*Values retrieved from S&P Global
The Q3 2026 net loss reflects one-time charges, but underlying trends show margin pressure from promotional activity as the company fights to retain price-sensitive customers.
The Air New Zealand Chapter
Foran's most recent role—CEO of Air New Zealand from 2020 to October 2025—tested him in ways grocery never could. He started just as COVID-19 shut down global aviation, forcing a 30% workforce reduction (about 4,000 jobs) and securing a NZ$900 million government loan to avoid insolvency.
Critics noted that the staff cuts proved excessive once travel recovered, creating operational strains. But supporters argue he navigated an existential crisis and kept the airline intact. His March 2025 resignation, announced before Kroger's search intensified, positioned him perfectly for this opportunity.
Ask Fintool AI AgentWhat Foran Must Fix
Kroger's challenges are structural, not just cyclical:
1. Market Share Erosion The company captured only 8.5% of U.S. grocery spend in Q3 2025, down from 8.8% a year earlier, according to Numerator data. Meanwhile, Walmart maintains roughly 21% share and is gaining.
2. The Digital Gap While Kroger's eCommerce business grew double digits and the company expects it to turn profitable in 2026, it still lags Walmart's sophisticated fulfillment network that has turned thousands of stores into delivery hubs. {{ref:ir.kroger.com/news/news-details/2025/Kroger-Reports-Third-Quarter-2025-Results-and-Updates-Guidance-for-2025/default.aspx}}
3. Legal Distraction The ongoing litigation with Albertsons—with trial scheduled for October 2026—represents an ongoing distraction and potential liability.
4. Consumer Pressure Approximately 68% of consumers still struggle to afford groceries, per Swiftly research, pushing shoppers toward discount formats and private label.
The Foran Playbook at Kroger
If Foran applies his Walmart approach to Kroger, expect:
- Back to basics: Store-level execution improvements before grand strategy
- Capital discipline: Focus on existing stores rather than M&A
- Employee-first: Investment in wages and training to reduce turnover
- Digital integration: Accelerating click-and-collect and delivery without sacrificing margins
The question is whether Kroger's more regional, decentralized structure can adapt to the operational rigor that made Foran successful at Walmart's scale.
What to Watch
Kroger is expected to announce Foran's appointment as early as Monday. Key upcoming catalysts include:
- Q4 2026 earnings (expected early March): First opportunity to hear Foran's vision
- Albertsons trial (October 2026): Potential financial liability and distraction
- 2026 guidance: Will Foran commit to market share recovery targets?
At $67.50 with a market cap of $44.7 billion, Kroger trades at a significant discount to historical valuations. The market will now price in whether the Walmart turnaround architect can work the same magic at America's largest supermarket chain.
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