Kroger named former Walmart executive Greg Foran as its chief executive officer on Monday, 11 months after the abrupt resignation of its previous CEO.

Foran led Walmart’s U.S. division for six years before departing in 2019. While there, he introduced online ordering and pickup, and accelerated Walmart’s digital capabilities.

Walmart has reshaped itself into a tech-powered retail giant that has leaned heavily into automation and artificial intelligence, and it’s one of the biggest competitive threats to Kroger, the largest standalone U.S. supermarket chain.

Shares of The Kroger Co. rose 6% before the opening bell Monday after Kroger said Foran would lead the company.

Walmart has become a larger challenge to Kroger and other traditional grocers as Americans increasingly pick up their groceries along with other general goods that Walmart sells. Walmart currently controls around 21% of the U.S. grocery market, compared to 8.5% for Kroger, according to the market research company Numerator.

Kroger proposed a merger with Albertsons in 2022 as a way to better compete with Walmart, Costco and others. But the Federal Trade Commission and two states — Washington and Colorado — sued to block the merger in 2024, saying it would raise prices and lower workers’ wages by eliminating competition. Judges ultimately ruled that the merger should not proceed.

Foran succeeds Ron Sargent, who has been Kroger’s interim leader since former CEO Rodney McMullen resigned last March. McMullen had been Kroger’s CEO since 2014 and was also the company’s chairman. Kroger said he resigned after an investigation into his personal conduct, which was unrelated to the business but violated its ethics policy.

Sargent will continue to serve as Kroger’s chairman to ensure a smooth leadership transition.

“Greg is a highly respected operator who knows how to run large-scale retail businesses, strengthen store execution and lead high-performing teams,” Sargent said in a statement. “His leadership style, focus on the customer, commitment to associates, and disciplined approach to execution are the perfect fit for Kroger.”

Foran, a New Zealand native, most recently served as CEO of Air New Zealand, where he also improved digital capabilities, led negotiations with the airline’s union and guided it through the pandemic.

Kroger, based in Cincinnati, has 2,731 stores and 409,000 employees.