Dive Brief:
- Albertsons announced Monday CEO Vivek Sankaran will retire on May 1 after six years in the top role.
- The grocery company appointed Susan Morris, currently its executive vice president and chief operations officer, to take over as CEO following Sankaran’s departure. She will also assume Sankaran’s position on the company’s board.
- Morris, who has worked nearly 40 years at Albertsons and has served as COO since 2018, will lead the supermarket chain as it tries to regain its footing following its failed acquisition by Kroger.
Dive Insight:
Sankaran’s impending departure from Albertsons marks the latest high-profile change as the retailer regroups after abandoning its quest to combine with Kroger — a transaction both companies had once cast as essential to their future prosperity.
In a statement the day after the merger collapsed under regulatory pressure, Sankaran said Albertsons was in a strong position to move ahead on its own. But when Albertsons reported its results for the third quarter in early January, he announced that the company was embarking on a plan to shave $1.5 billion in costs over the next three years as it looked to “accelerate our growth rates to compete with the very, very best in the industry.”
Albertsons has laid off corporate workers, restructured parts of its operations and closed stores over the past few weeks.
Sankaran joined Albertsons as president and CEO in April 2019 after serving as chief executive of PepsiCo Foods North America and earlier as a partner at McKinsey & Company. He replaced Jim Donald, who became co-chairman of Albertsons and continues to lead the board. Sankaran ceded the president’s role to Sharon McCollam in 2021 when she joined Albertsons as its CFO.
Jim Donald, chair of Albertsons’ board, noted in a statement that Sankaran led the company as it weathered the tumult caused by the COVID-19 pandemic and put it “on strong financial footing for its next chapter of growth.”
Albertsons said in a regulatory filing Monday that Sankaran’s decision to leave the company was “not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.”
Morris is preparing to take over the CEO’s role at a pivotal time for the company. Analysts have said that Albertsons needs to move quickly to strengthen its operations and improve its image with shoppers to demonstrate to investors that it has the wherewithal to succeed in a grocery market that has evolved significantly in recent years.
In her current role, Morris is responsible for retail operations at the chain’s more than 2,200 supermarkets. She was formerly executive vice president of regional operations and earlier served as division president in two markets. Morris began her career in retail at an Albertsons store in Denver.
In a statement, Morris said she has worked with Sankaran to develop plans to boost growth at Albertsons. “Albertsons Cos. has an incredibly bright future and the best team in the business — I am energized about the many opportunities that lie ahead,” she said in a statement.
Albertsons said Monday that its board of directors worked over the past several years to vet potential internal and external candidates to succeed Sankaran.
“Susan brings unmatched expertise and deep knowledge of the business,” Donald said. “She is highly respected across the organization and industry, with a strong track record of operational success and passion for serving our customers and communities.”
