Kroger’s announcement last month that it would buy Giant Eagle for just under $1.7 billion was one of the grocer’s first major moves under new CEO Greg Foran, an indicator of how the company’s strategy could look going forward.Foran joined Kroger in February after serving as CEO of Air New Zealand since 2020. Before that, he was president and CEO of Walmart U.S. for about six years. Industry experts told Modern Retail in February, based on Foran’s experience at Walmart, that they expected he would focus on fundamentals like inventory and merchandising as well as financial discipline. So far, they’ve been right; Foran has placed an emphasis on speed and execution.
And while Kroger still is making a big acquisition in Giant Eagle, that doesn’t carry the same regulatory or financial risk as the failed Albertsons mega-deal that defined the end of former CEO Rodney McMullen’s tenure. The Giant Eagle deal is much smaller, and Kroger is financing it with cash.
“We’ve got terrific assets. We’re outperforming many traditional grocery competitors, and we’re proud of that, but beating other grocers isn’t the same as leading the industry,” Foran said during Kroger’s first-quarter earnings call in June. “Customers today are shopping across more channels with more of their spend going outside of traditional grocery, but I don’t see that as a problem. I see it as an opportunity; right industry, right moment, right foundation. The runway in front of this business is significant. We have what we need, now we need to execute.”
