Axios Pro Exclusive Content

Kroger CFO departs for Costco while Albertsons merger hangs in balance

Feb 6, 2024
Customers enter a Kroger grocery store, which has a brick and glass facade.

Photo: Jeffrey Greenberg/Universal Images Group via Getty Images

Kroger's CFO Gary Millerchip is leaving the grocery chain in a lateral move to warehouse club operator Costco.

Why it matters: The departure of Kroger's top finance executive is not ideal while attempting to execute the largest grocery merger in history.

Details: Todd Foley, corporate controller and chief accounting officer, has been named interim CFO.

Zoom in: Kroger told its employees on Monday that its CIO Yael Cosset will oversee the grocer's integration planning with Albertsons, per Bloomberg.

Meanwhile, Millerchip is replacing Richard Galanti at Costco, who will remain in an advisory role, effective March 15.

Between the lines: Kroger CEO Rodney McMullen tried to soothe investors by touting Foley and the "deep bench" on Kroger's finance team.

Catch up fast: Kroger has been attempting to strike a deal with federal antitrust regulator the Federal Trade Commission to get its acquisition of Albertsons approved.

The bottom line: Unless the two sides extend the timing agreement yet again, a decision on whether the FTC will challenge the deal should come this month.

Kroger did not immediately respond to a request for comment.

Go deeper