Sponsored By

Kroger CFO J. Michael Schlotman to retire

Personal finance business chief Gary Millership named successor

Russell Redman

December 18, 2018

3 Min Read
Supermarket News logo in a gray background | Supermarket News

Mike_Schlotman_Kroger_0.pngJ. Michael Schlotman (left) plans to retire as chief financial officer of The Kroger Co. late next year and is slated to begin transitioning from the role prior to the spring.

Kroger said late Monday that plans call for Schlotman to retire from the company in December 2019, continuing in the CFO role through the end of the 2018 fiscal year and until April 3, 2019. After that, he will remain as executive vice president on the senior leadership team until Dec. 28 to support the company during the CFO transition.

Gary_Millerchip_Kroger_0.pngGary Millerchip (left), CEO of Kroger Personal Finance, has been named to succeed Schlotman as senior vice president and CFO of Kroger effective April 4, 2019.

"Consistent with Kroger's governance history of thoughtful succession planning, Gary and Mike have a deliberate and thorough CFO transition plan with a singular focus, a seamless transition to successfully deliver on the Restock Kroger financial commitments and then beyond in the role of Kroger's chief financial officer," Kroger Chairman and CEO Rodney McMullen said in a statement.

Schlotman has served as CFO at Cincinnati-based Kroger since January 2000 and as executive vice president since September 2015. He started his career at accounting firm Coopers & Lybrand in Louisville, Ky., before transferring to Cincinnati and then joining Kroger in 1985. He was appointed vice president and corporate controller in 1995 before becoming CFO five years later.

"Mike is one of retail's most respected executives and has served Kroger for over 30 years. Mike is also one of the chief architects of Restock Kroger, our plan to create shareholder value by serving America through food inspiration and uplift," McMullen commented. "He and I have personally worked side by side for several decades. I deeply value Mike's contributions, the credibility he has earned with the financial community, and his leadership as a key member of our most-senior management team."

Millerchip has been CEO of Kroger Personal Finance, which provides financial and retail services through the Kroger Co. stores, since April 2008. He is also responsible for several retail grocery divisions and leads the integration of Kroger's corporate strategic initiatives. The company noted that Millerchip “has been at the table” with senior management team for five years and played a key part in driving strategy and partnerships that have diversified Kroger’s business beyond grocery.

He joined Kroger from Royal Bank of Scotland (RBS) to lead Kroger Personal Finance. Before that, he oversaw the Royal Bank of Scotland Personal Credit Card business in the United Kingdom. During his career at RBS, which began in 1987, he held various leadership positions in multiple areas, Kroger said.

"Gary's deep finance and business background, coupled with a successful track record of creating long-term shareholder value for The Kroger Co., make him an excellent choice for Kroger's Chief Financial Officer of the future," according to McMullen.

At Kroger’s annual investor conference in October, executives said the company is looking to alternative profit streams to help reach its goal of $400 million in operating profit by 2020 under the Restock Kroger plan to redefine the customer experience. Though Kroger’s core grocery business will generate the lion’s share of profits, it’s expected to see little growth in the coming years, they said. Meanwhile, business through partnerships, media, CPG insights and Kroger Personal Finance is already expanding at a 16% compound annual growth rate in EBIT (earnings before interest and taxes) and is projected at 28% growth through 2020 and 34% to 2022.

Millerchip’s succession to CFO positions Kroger to fuel that growth, according to Jefferies analyst Christopher Mandeville.

“As alternative profit streams are the primary driver to [Kroger] Restock success, we find the promotion as an indicator of just how serious management is taking its business transition and goal of hitting $400 million incremental EBIT by 2020,” Mandeville said in a research note Monday. “And we appreciate the level of continuity to which Mr. Millerchip should be able to bring to the table to ensure success.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like