Albertsons Companies, Inc. announced Monday afternoon that Susan Morris, executive vice president and chief operating officer, will succeed Vivek Sankaran as chief executive officer when he retires from the role on May 1. Additionally, Morris will take Sankaran’s seat on the Albertsons Cos. Board of Directors.
The announcement came just hours after Kroger Chairman and CEO Rodney McMullen abruptly resigned following an internal investigation into alleged misconduct. No details were provided about the nature of the investigation, except to clarify that McMullen’s alleged misconduct was not tied to Kroger’s financial performance, operations or other employees.
Boise, Idaho-based Albertsons said Morris will work closely with Sankaran during the transition period.
Jim Donald, chairman of the Albertsons Cos. Board of Directors, said in the release: “Over the past several years, the Board has undertaken a thorough and thoughtful succession planning process to identify the company’s next CEO, evaluating both internal and external candidates. We are convinced that Susan is the right person to lead Albertsons into its next chapter of growth. With nearly 40 years of experience with the company, beginning at an Albertsons store in the Denver market, Susan possesses a deep and unmatched understanding of the business. She is highly respected throughout the organization and the industry, and has a proven track record of operational success and a commitment to serving our customers and communities.”
The departure of the two CEOs comes amid the failed merger of the nation’s two largest grocery chains. Kroger’s acquisition of Albertsons was rejected by two courts in December, and Albertsons is currently suing Kroger for $600 million over the failed acquisition.
“At a time of profound change in the grocery industry, I am honored to be named the next CEO of Albertsons Cos.,” Morris said in the statement. “I have worked closely with Vivek and the leadership team on our plans to accelerate growth, and I am confident that our ‘Customers for Life’ strategy will lead us on the right path. I look forward to participating in the fiscal fourth-quarter earnings call, where we will discuss our strategy and provide our outlook for fiscal 2025. Albertsons Cos. has a bright future ahead, and we have the best team in the industry. I am energized by the many opportunities ahead.”
Morris’ profile rose to prominence in July, when Albertsons revealed that, had the $24.6 billion acquisition been approved, she would have taken over as president and CEO of C&S Wholesale Grocers, a proposed purchase to appease federal regulators. C&S reportedly acquired 579 Kroger and Albertsons stores as part of a forced divestiture.
Critics of the deal said C&S, which at the time operated just 23 grocery stores and one retail pharmacy, was ill-prepared to manage the divested stores. Morris, who has held several roles at the company, was named executive vice president and chief operating officer in 2018, having previously served as executive vice president of regional operations and division president in two markets, among others.
Albertsons said the change in leadership is not expected to impact the company’s financial outlook for the remainder of fiscal 2024.
