Kroger Monday named former Walmart executive Greg Foran as its CEO, capping a year-long search following the ouster of Rodney McMullen last March.

Foran was the CEO of Air New Zealand for about five years until October 2025. Between 2014 and 2019, he was the president and CEO of Walmart's U.S. operations.

At Walmart, Foran was credited for turning around its U.S. business as he managed more than 4,600 stores, while helping build its digital business by introducing online ordering and pickup. Under his leadership, Walmart reported 20 quarters of comparable sales growth.

'DIGITAL GROWTH'

"(We) believe he (Foran) brings instant credibility to Kroger after his demonstrated success turning around Walmart U.S. store operations," Evercore ISI analyst Michael Montani said.

Kroger had in December narrowed its annual sales target in fresh signs that Americans were turning more selective while navigating persistent inflation.

"Foran would inherit a far more complex multi-banner portfolio than Walmart's unified chain," Morgan Stanley analysts said.

Foran's focus, they said, would likely center on strengthening in-store execution and evaluating whether Kroger has the tools to accelerate digital growth.

The shares of the company, which reaffirmed its fiscal year 2025 forecast, were up about 7% in premarket trading on Monday.

During its search for a new CEO, Kroger's board appointed lead director Ronald Sargent, a former top boss at office supplies chain Staples for more than a decade, as interim CEO.

The company said Sargent will continue as board chairman.

CHASING ALBERTSONS

McMullen's exited last year after leading the grocer for about 11 years. His departure followed Kroger abandoning a two-year attempt to acquire Albertsons for $25 billion, a deal he had strongly backed as a means to fight higher prices and boost competition.

Under McMullen, who was removed after finding that his conduct was "inconsistent" with certain company policies, the company's stock price had more than tripled in value.