It’s not every day a guy who started as a part-time stocker in 1978 and climbed his way to the very top of the biggest grocery chain in the country just... walks away. But that’s exactly where we are. Kroger CEO Rodney McMullen resigns, and honestly, the timing couldn't be weirder. After nearly five decades with the company—his whole adult life, basically—McMullen is out.
The news hit the industry like a ton of bricks. We’re talking about a man who was the face of the $24.6 billion attempt to buy Albertsons. He was the one sitting in front of Congress, defending the merger, promising lower prices, and insisting that a Kroger-Albertsons powerhouse was the only way to fight off the likes of Walmart and Amazon.
Then, it all fell apart.
The Shocking Ethics Review
So, why did he actually leave? If you’re looking for a simple "he retired to spend time with his grandkids" narrative, you won't find it here. The board didn't mince words. They launched an internal investigation into his personal conduct.
They found it was "inconsistent with Kroger’s Policy on Business Ethics."
That is corporate-speak for "we found something we couldn't ignore." The company was quick to point out that this conduct was unrelated to the business. It didn't involve other Kroger employees, and it didn't involve the company's finances. Still, in 2026, the standard for a CEO is higher than it’s ever been. You can't lead a company with 420,000 associates if the board thinks your personal choices compromise the brand's integrity.
A lot of people are asking if this was just a convenient way for the board to push him out after the Albertsons merger died in the courts. Maybe. But the paper trail points toward a specific ethics violation discovered in late February 2025 that made his position untenable by March.
Life After the Merger Collapse
Let’s be real: McMullen’s legacy was tied to that Albertsons deal. When the FTC and various state attorneys general successfully blocked the merger in late 2024, it was a massive blow. Albertsons didn't just walk away; they sued Kroger. It was messy.
By the time Kroger CEO Rodney McMullen resigns, the company was already pivoting. They had to. You can’t spend three years planning for a merger only to have it vanish and then just keep doing the same thing.
- The company started closing underperforming stores (about 60 of them).
- They shifted their e-commerce strategy away from those massive, expensive automated warehouses.
- They started focusing back on the basics: being the "neighborhood grocer" that actually offers value.
Who is Running the Show Now?
Right now, the captain of the ship is Ron Sargent. He’s the interim CEO and the former boss over at Staples. He’s been on the Kroger board for a while, so he knows where the bodies are buried, but he’s already made it clear he’s not the long-term answer.
Just this week, in mid-January 2026, Sargent announced a massive leadership shuffle.
- Victor Smith (who also started as a clerk back in the 80s) is moving up to Senior VP of Retail Divisions.
- Monica Garnes is taking over the Atlanta division.
- Kendra Doyel is now heading up Ralphs.
It feels like Kroger is trying to get back to its roots. They’re promoting people who have been in the aisles, people who understand what it’s like to actually run a grocery store, not just a spreadsheet.
What This Means for Your Grocery Bill
You might think CEO drama doesn't matter when you're just trying to buy eggs, but it does. Under McMullen, Kroger was obsessed with scale. Now, they’re obsessed with survival and "value propositions."
Analysts at Jefferies actually think Kroger is a "top large-cap food stock" for 2026. Why? Because without the distraction of a $24 billion merger, they can actually focus on lowering prices to compete with Aldi and Walmart. They just launched a "Verified Savings Program" that gives 20% off produce for people on government assistance. That’s a huge shift from the corporate maneuvering of the last three years.
The Next Steps for Kroger
The board says they’ll have a permanent CEO from outside the company by the end of the first quarter of 2026. This is a big deal. For decades, Kroger has been an "insider" company. Bringing in an outsider suggests they want a total culture shift.
If you’re watching this story, keep an eye on these three things:
- The CEO Search: If they hire a tech executive, expect more AI and automation. If they hire a retail veteran, expect a focus on the "in-store experience."
- The Share Buybacks: Kroger just authorized another $2 billion to buy back their own stock. They’re trying to keep investors happy while the leadership is in flux.
- E-commerce Profitability: They’ve admitted their digital business needs to actually make money this year.
The era of Rodney McMullen is over. Whether he was a visionary who almost pulled off the biggest deal in retail history or a leader who stayed a little too long is something business historians will argue about for years. For now, Kroger is just trying to make sure the shelves are stocked and the lights stay on.
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Actionable Insights:
If you're an investor or just a frequent shopper, watch for the official permanent CEO announcement in March 2026. This will signal whether Kroger is doubling down on its traditional grocery roots or attempting a radical digital transformation. In the meantime, expect more aggressive "loyalty" discounts as the company tries to stabilize its market share following the leadership shakeup.