UFCW Calls for Kroger CEO's Resignation

Kroger faces backlash from United Food and Commercial Workers (UFCW) unions following its announcement of a $7.5 billion stock buyback plan, coinciding with the termination of its $25 billion merger with Albertsons, which was blocked by a U.S. judge. The unions, advocating for the replacement of CEO Rodney McMullen, argue that the funds should instead be allocated to staffing and store improvements rather than shareholder payouts. Albertsons has filed a lawsuit against Kroger for breach of contract after pulling out of the merger deal. Kroger's spokesperson defended the buyback, stating it is a resumption of repurchases that were paused since the merger agreement in 2022. Unions have criticized the move as a tactic to divert attention from McMullen's leadership failures. The ongoing legal and market implications of these corporate decisions are expected to impact Kroger's reputation and investor sentiment.