Kroger and Albertsons, having experienced the breakdown of their merger, are charting their path forward.
Kroger and Albertsons Navigate Changes After Failed Merger
Since the collapse of the proposed Kroger-Albertsons merger in late 2024, both companies have undergone significant changes in operations and leadership, reflecting their refocused strategies and ongoing legal disputes.
Kroger's Revitalization Efforts
Following the merger's failure, Kroger appointed Ronald L. Sargent as CEO, who has been driving a "fresh-led reset" focused on returning to Kroger’s core grocery business, emphasizing fresh products, and empowering local divisions to innovate and be customer-centric. Sargent’s leadership underscores a back-to-basics approach, moving away from merger distractions to improve store performance and accelerate sales. Kroger reported increased same-store sales and earnings in early 2025 under Sargent's watch.
In addition to leadership changes, Kroger has been involved in lawsuits related to the failed merger, including a countersuit against Albertsons involving divestiture disagreements, and resolving a legal claim with C&S Wholesale Grocers concerning termination fees.
Albertsons' Growth Strategy
Albertsons, on the other hand, has brought in Susan Morris as CEO in May 2025, a grocery industry veteran with nearly four decades at the company. Morris is spearheading a triple-threat growth strategy that integrates modern customer engagement, retail media, and a sharp focus on value, alongside intensified investments in digital innovation, store modernization, and localized efforts.
Albertsons is also actively pursuing legal action against Kroger, including demands for more details regarding Kroger’s former CEO Rodney McMullen’s resignation amid ethical concerns raised during the merger saga.
In terms of new initiatives, Albertsons launched its latest Own Brand, Chef's Counter, debuting with ready-to-cook marinated meats. The company also extended its partnership with omnichannel advertising management platform ADvendio and launched an API, partnering with TransUnion to offer its advertisers TruAudience marketing mix modeling measurement. Albertsons Media Collective also launched an in-store digital display network pilot through a partnership with STRATACACHE Inc.
Both Companies Press On
In summary, Kroger is focused on stabilizing and revitalizing its core grocery business with fresh leadership and operational improvements, while Albertsons is doubling down on growth through digital and customer-centric strategies under new leadership. Both companies are navigating ongoing litigation stemming from their failed merger attempt.
Albertsons operates 2,270 retail food and drug stores with 1,728 pharmacies, 405 associated fuel centers, 22 dedicated distribution centers, and 19 manufacturing facilities. The company is No. 9 on Progressive Grocer’s 2025 list of the top food and consumables retailers in North America.
Kroger, on the other hand, has launched a new e-commerce business unit aimed at centralizing operations. The company also reported Rodney McMullen's resignation after an internal investigation into his personal conduct, with David Kennerley succeeding Todd Foley as SVP and CFO. Steve Feinberg stepped down from the Albertsons board of directors, with Frank Bruno appointed to fill his position. Albertsons Media Collective also launched a partnership with Omnicom Media Group to create a new omnichannel media offering for advertisers.
As both companies move forward, they continue to adapt and evolve in response to the ever-changing retail landscape. The failed merger has undoubtedly left its mark, but both Kroger and Albertsons are demonstrating resilience and determination in their respective paths.
- Kroger's new leadership, Ronald L. Sargent, has initiated a "fresh-led reset" focused on finance and sales growth by emphasizing fresh products and empowering local divisions, reportedly increasing same-store sales and earnings.
- Altering its strategy, Albertsons has introduced new private label products, such as Chef's Counter, and extended partnerships with technology companies like ADvendio, TransUnion, and STRATACACHE Inc., strengthening their digital presence and retail media offerings.
- In the midst of these changes, both companies are engaged in lawsuits related to finance, education-and-self-development, and general-news disputes, namely legal claims over the failed merger and investigations into personal conduct by executives.
