Kroger CFO Mike Schlotman to Retire; Gary Millerchip to Take Over in April

J. Michael Schlotman, who has been CFO of The Kroger Co. since 2000, will retire in December 2019, the Cincinnati-based retailer said.

J. Michael Schlotman

Schlotman will continue as CFO through the end of Kroger’s fiscal 2018 and up to April 3. He will then remain an EVP of the company and continue to sit on its senior leadership team to support the company during this transition period until Dec. 28, 2019.

Gary Millerchip, CEO of Kroger Personal Finance and a leading advocate for the company’s alternative revenue streams, will succeed Schlotman as SVP and CFO and of Kroger, effective April 4 next year.

Gary Millerchip

“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,” said Rodney McMullen, Kroger's chairman and CEO.

As CFO, Schlotman presided over Kroger’s financial affairs during a period of sustained success spanning two CEOs, becoming a trusted confident of Dave Dillon and his successor as CEO, Rodney McMullen. He often represented Kroger to the financial community and was instrumental in championing the shopper-focused “Customer 1st” strategy, which led to 52 consecutive quarters of same-store sales growth that ended in 2017. Schlotman was also integral in the Restock Kroger initiative, which is seeking to evolve the retailer into an omnichannel growth company; and re-engineered a number of pension deals during his tenure that improved cost certainty for the retailer as it navigated a food retailing landscape with few union operators.

Related:Kroger Touts New Revenue Streams in Q3 Results

“Mike is one of retail’s most respected executives and has served Kroger for over 30 years," McMullen said in a statement, in which he described Schlotman as "one of the chief architects of Restock Kroger ... to create shareholder value by serving America through food inspiration and uplift. 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.”

Schlotman started his career with the Coopers & Lybrand accounting firm in Louisville, Ky., transferring to Cincinnati before joining Kroger in 1985. He was elected VP and corporate controller in 1995 and then elected CFO in January 2000.

Schlotman is a member of the CNBC Global CFO Council. He sits on the board of The Ohio National Financial Services Inc. and The Ohio National Life Insurance Co. He is chairman of the board of the Cincinnati/Northern Kentucky Airport and a member of the University of Kentucky’s Gatton College Accounting Advisory Board. In 2016, he was elected to the Gatton College of Business and Economics Hall of Fame.

Related:Revolution: 7 Radical Ways Kroger Is 'Restocking'

Millerchip, currently the CEO of Kroger’s credit-card business, will succeed Schlotman. McMullen highlighted the success of the company's personal finance unit while reviewing financial results earlier this month.

“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,” McMullen said.

In addition to his role with Kroger Personal Finance, Millerchip is also responsible for several retail grocery divisions and leads the integration of Kroger’s corporate strategic initiatives. Millerchip has been at the table with the senior management team for five years, playing an essential role in driving strategy and partnerships that have contributed to Kroger’s emergence from traditional grocer to a growth company, the retailer said.

Millerchip joined Kroger in 2010 from Royal Bank of Scotland, where he was responsible for the Royal Bank of Scotland Personal Credit Card business in the UK. Millerchip joined RBS in 1987 and held leadership positions in multiple disciplines during his time there. Millerchip earned a bachelor’s degree in financial services from the University of Central England and a post-graduate degree in business administration from the University of Warwick in the U.K. He and his wife, Gita, live in Cincinnati with their two children.