CINCINNATI — David B. Dillon, who led The Kroger Co. leadership team’s development of the company’s successful Customer 1st Strategy, will retire as chairman of the board on Dec. 31, after 38 years of service.
As expected, the Kroger Board of Directors on Friday elected Rodney McMullen, Kroger’s chief executive officer, to the additional post of chairman, commencing on Jan. 1, 2015. McMullen has served on the Board of Directors since 2003.
Dillon served as Kroger’s chairman from 2004 – 2014 and as chief executive officer from 2003 – 2013. Before that, he held a variety of executive positions at Kroger and Dillons Companies, which merged in 1983. During his tenure as CEO, Kroger grew revenue by $45 billion, created 53,000 new jobs, reduced costs for eight consecutive years and returned $9.2 billion to shareholders through share repurchases and dividends, which were reinstated in 2006.
Kroger has also become a leader in supermarket sustainability under Mr. Dillon’s leadership. The company has reduced energy consumption in stores by 35 percent since 2000 and reduced its carbon footprint by 4.4 percent since 2006. More than half of the company’s 37 manufacturing facilities are zero waste. Kroger’s efforts to feed families struggling with hunger have grown to total contributions of 250 million meals – 4 million meals per week – in 2013.
“For Dave, Customer 1st – which truly put our customers at the center of how Kroger runs its business – was more than a successful business strategy. It was a philosophy that he believed and lived through his actions every day, and as a result he inspired thousands of our associates during his many years of service to Kroger and Dillons Companies,” McMullen said. “He understood that Kroger’s greatest asset is the trust that our customers, associates and shareholders have in our company. We are all the beneficiaries of Dave’s extraordinary leadership.”