Kroger No. 2 to become CEO as Dillon retires

Kroger announced Friday that chief executive David Dillon, 62, will retire Jan. 1 and be replaced by his No. 2, chief operating officer W. Rodney McMullen, 53.

Dillon, a 37-year veteran of Kroger and CEO since 2003, will continue as chairman of the board through Dec. 31, 2014. McMullen has been chief operating officer and president since 2009.

“As Kroger implements its strategic growth initiatives, the time is right for the transition of leadership,” Dillon said in a statement. “I am delighted that the Board has elected Rodney McMullen to succeed me. Rodney has played a leadership role in every major decision Kroger has made for the past 25 years.”

Dillon credited McMullen with helping develop the grocer’s Customer 1st initiative and shaping the company’s overall growth strategy. Dillon said he will assist with the leadership transition.

McMullen worked his way through the University of Kentucky as a part-time associate at Kroger from 1978 to 1982. He joined the company after graduation and became a financial analyst at Kroger in 1986 and became the company’s chief financial officer in 1995 – at the age of 34. His duties quickly expanded beyond traditional finance roles to include strategy and operations. He led the integration of Kroger’s $13 billion merger with Fred Meyer Inc. in 1999.

In 2000, McMullen was elected executive vice president of strategy, planning and finance. Two years later, he was elected vice chairman of Kroger’s Board of Directors.

“I am honored to have this unique opportunity to serve our company,” McMullen said, in a statement. “I am excited to lead our efforts to build on Kroger’s market position and competitive advantages to drive value for our shareholders and to strengthen our deep connection with our great associates, our millions of customers and the communities we call home.”

Kroger’s board thanked Dillon for his leadership and expressed confidence in McMullen.

“On behalf of the Board, I thank Dave Dillon for an extraordinary job as CEO and throughout his distinguished career at Kroger,” said Robert D. Beyer, Kroger’s Lead Director, in a statement. “Under his leadership, the company has consistently delivered value for shareholders, customers, and associates.”

Beyer said the board “planned carefully” for this leadership succession.

“We are confident Kroger will continue its growth momentum during the transition and under Rodney McMullen’s leadership,” Beyer said. “Rodney has the right skills and experience to build on Dave’s accomplishments and leverage Kroger’s strong platform in the years ahead.”