CFO shakeup at Costco, Kroger
In a move that caught the industry by surprise, the longtime and highly respected CFO of Costco Wholesale Corp. is departing after serving in the role for nearly 40 years.
The membership warehouse club retailer said that Richard Galanti is stepping down, effective March 15, but will remain with the company through January 2025 in an advisory role. Costco named Gary Millerchip, currently finance chief of The Kroger Co., as executive VP and CFO, also effective March 15. Millerchip departs Kroger as the supermarket giant’s proposed $24.6 billion acquisition of Albertsons has been delayed amid ongoing discussions with regulators.
In a separate announcement, Kroger named Todd Foley, group VP, corporate controller and chief accounting officer, as interim CFO, effective Feb.6. The company said it will name a permanent CFO at a later date. Millerchip joined Kroger in 2008 as CEO of Kroger Personal Finance. He was named senior VP and CFO in April 2019. Prior, he spent more than 20 years in banking, most recently with the NatWest Group (formerly Royal Bank of Scotland) in the U.K.
Galanti joined Costco in 1993. His departure comes a few months after another longtime Costco veteran, CEO Craig Jelinek, stepped down, handing the reins to Ron Vachris in January.
“Over his nearly forty-year tenure as chief financial officer at the company, Richard has made innumerable and invaluable contributions to its success,” stated Vachris. “He is widely known, admired, and respected among our shareholders, employees, business partners, and others. We express our deepest gratitude for his long and loyal service.”
Kroger
Foley, Kroger’s new interim CFO, joined the grocer in 2001 and has served in a number of roles. He has over 30 years of experience in finance, the company said.
“Todd is the right person to take the helm and will step in seamlessly to continue advancing our value creation model and maintain a strong financial framework for our company as we plan ahead for our pending merger with Albertsons,” stated Kroger chairman and CEO Rodney McMullen.
"This is an exciting time in Kroger's history, and it is an honor to lead our world-class finance team as we continue building for the future," said Foley. "Kroger has a successful go to market strategy, and there is great momentum across the business. I'm looking forward to continuing to work closely with the Kroger leadership team to deliver on our long-term value creation goals and ensure a smooth transition for all stakeholders."
Kroger operates 2,800 stores under a variety of banners across the U.S. Costco currently operates more than 870 warehouses, including 600 in the United States and Puerto Rico and 108 in Canada.