Kroger announced Monday that Gary Millerchip (pictured) is leaving as senior vice president and CFO to take an executive role at another company. Costco announced Tuesday that Millerchip will become its CFO and executive vice president, effective March 15.
According to Grocery Dive daily, with Millerchip’s exit, Kroger is losing a veteran C-suite executive at a crucial moment. Millerchip told Kroger about his decision to leave on Jan. 30, according to a company filing with the Securities and Exchange Commission. “Millerchip’s decision was not due to any disagreements with Kroger on any matter relating to Kroger’s operations, policies, or practices,” Kroger said in the filing. Millerchip joined Kroger in 2008 as CEO of Kroger Personal Finance and then became SVP and CFO in April 2019 following the retirement of J. Michael Schlotman.
KROGER AND ALBERTSONS: THE PROPOSED MERGER
Millerchip left Kroger at a pivotal moment in the grocery company’s history as it looks to consummate its proposed merger with Albertsons in the face of powerful opposition from labor groups, politicians and others bent on undoing the combination. Kroger and Albertsons had expected to complete their deal early this year, but last month pushed back their timeline for the transaction until mid-2024 to allow more time for dialogue with regulators.
COSTCO: GOVERNANCE AND STRATEGIES
Costco announced Tuesday that Richard Galanti is leaving the company after nearly 40 years as its CFO, effective March 15. The club retailer has appointed Gary Millerchip as Galanti’s successor. Galanti will remain with the company through January 2025 in an advisory role during Millerchip’s transition and continue to serve on its board of directors. Galanti has served as Costco’s CFO since 1985, its executive vice president and CFO since October 1993, and has been on the company’s board since the start of 1995.
Costco’s decision to hire Millerchip as finance chief continues the retailer’s carefully choreographed approach to executive succession, although its move to look outside the company for Galanti’s replacement contrasts with its decision to position an internal executive to advance to the CEO’s position, says Grocery Dive.
For its first-quarter results in its fiscal year 2024, Costco reported net sales of $56.7 billion, up 6.1% from the same period a year ago. Costco currently operates 874 warehouses globally, including 602 in the United States and Puerto Rico.