Kroger Realigns Senior Management Team

    by Pamela Bowers on 2/2/00

 

    The nation's largest retail grocery chain, Cincinnati-based Kroger Co.,

    has realigned its senior management team, including a series of

    executive promotions, according to a news release.

 

    "This realignment will position Kroger for continued growth by

    establishing a corporate-wide focus on operations, merchandising, and

    support systems," said Joseph A. Pichler, Kroger chairman and CEO.

    "The structure enhances Kroger's ability to achieve synergies from

    economies of scale throughout the organization."

 

    David B. Dillon, 48, who has served as president since 1995, has

    assumed the additional role of CEO. In his new position, Dillon is

    responsible for all operations and merchandising. He has spent 24

    years in the supermarket industry, holding a variety of management

    positions within the company. Prior to 1995, he spent five years as

    executive vice president of Kroger.

 

    W. Rodney McMullen, 39, has been named executive vice president,

    Strategy, Planning and Finance. He previously served as executive vice

    president and chief financial officer. In his new position, McMullen is

    responsible for strategic initiatives, achievement of merger synergies,

    business planning and capital planning.

 

    Don W. McGeorge, 45, has been promoted to executive vice president,

    with continued responsibilities for directing Kroger's merchandising

    integration and national procurement. He previously served as senior

    vice president, a position he had held since 1997. In his new position,

    McGeorge also will work to enhance the value of Kroger's private-label

    business.

 

    In addition, Donald E. Becker, 50, has been promoted to senior vice

    president. For the past four years, he has served as president of the

    Central Kroger Marketing Area based in Indianapolis. Becker will be

    responsible for various marketing areas.

 

    Paul Scutt has been named President of the Central KMA, replacing

    Becker. Scutt, 50, previously served as regional vice president, based

    in Hutchinson, Kansas. Before that, he spent seven years as vice

    president of merchandising at the Central KMA.

 

    J. Michael Schlotman, 42, has been promoted to group vice president

    and chief financial 0fficer. For the past five years, he has served as vice

    president, Financial Services and Control. Prior to that, Schlotman held

    various positions in corporate accounting after joining Kroger in 1985.

 

    CEO Pichler reiterated that Kroger remains on track to meet or exceed

    its synergy savings goals for fiscal 1999 and beyond, and that he

    remains confident in the company's ability to generate earnings per

    share growth at the targeted rate of 16 percent to 18 percent beginning

    in fiscal 2000.

 

    "The new organization will support the local divisional merchandising

    and operating strategies that are targeted to customers in each local

    market. Our 20 retail divisions will continue to implement

    merchandising, pricing and operations that address local market

    conditions. These local programs will benefit from the cost reductions

    achieved through corporate-wide initiatives," Pichler said.

 

    Headquartered in Cincinnati, Ohio, Kroger operates 2,268

    supermarkets and multi-department stores in 31 states under more

    than a dozen banners, including Kroger, Fred Meyer, Ralphs, Smith's,

    King Soopers, Dillon, Fry's, Food 4 Less, Quality Food Centers, City

    Market and Jay C Stores. Kroger also operates 794 convenience

    stores, 383 fine jewelry stores and 42 food processing plants.