STORY: Shares of Kroger rose more than 8% Monday morning after the grocer named former Walmart executive Greg Foran as its new CEO.
The announcement caps a year-long search following the ouster of former Kroger chief executive Rodney McMullen last March.
At Walmart, Foran was credited with turning around the retail giant's U.S. business as he managed more than 4,600 stores.
He also helped build Walmart's digital business by introducing online ordering and pickup.
Morgan Stanley analysts said Foran's focus at Kroger would likely center on strengthening in-store execution and evaluating whether the grocer has the tools to accelerate online growth.
Kroger in December had narrowed its annual sales target in fresh signs that Americans were still navigating persistent inflation.
Former CEO McMullen was removed last year due to conduct that was deemed "inconsistent" with certain company policies.
His departure followed Kroger abandoning a two-year attempt to acquire rival Albertsons for $25 billion, a deal McMullen had strongly backed as a means to fight higher prices and boost competition.
Kroger's interim CEO, Ronald Sargent, a former top executive at Staples, will stay at the company as board chairman.
