THE FRIDAY 5: Target’s Q1 Downturn; Albertsons’ New Counterclaims Against Kroger

1. Family Dollar Names Duncan MacNaughton CEO

As Family Dollar gears up to transition to a stand-alone company, news came in this week that its future leadership team is beginning to take shape. Dollar Tree Inc., together with Brigade Capital Management and Macellum Capital Management, has named Duncan MacNaughton chairman and CEO of Family Dollar following the close of its previously reported divestiture. Jason Nordin will remain president of Family Dollar. 

MacNaughton has more than 30 years of experience guiding large-scale businesses through growth and transformation, and was previously president and COO of Family Dollar. His resume also includes stints at Kraft Food, H-E-B, Albertsons, Supervalu and Walmart, where he was EVP, chief merchandising and marketing officer.

“This leadership structure brings together two highly experienced and complementary leaders who share a deep commitment to Family Dollar’s success,” said Dollar Tree CEO Mike Creedon. “Duncan’s leadership experience and passion for value retail, combined with Jason’s strategic and operational expertise, position Family Dollar for a strong future as an independent company.”

The Family Dollar transaction is anticipated to close in the second quarter of 2025, subject to customary closing conditions.

2. Albertsons Pushes Back Against Kroger

The legal back and forth between Albertsons and Kroger continues. Nearly six months after their failed merger, Albertsons is pushing back against Kroger and its assertions that the Idaho-based grocer was engaging in a secret campaign alongside C&S Wholesale Grocers to pursue its own regulatory strategy.

Kroger filed a legal response to Albertsons’ earlier lawsuit against it in early March, which had claimed that Kroger failed to exercise “best efforts” and to take “any and all actions” to obtain regulatory approval of the companies’ proposed merger deal. 

Kroger said at the time that as a result of its misconduct, Albertsons is not entitled to the $600 million termination fee under the terms of the parties' merger agreement, nor is Albertsons entitled to other damages it is seeking. The alleged misconduct included incoming Albertsons CEO Susan Morris’ “secret communications with C&S's CEO and others, utilizing personal emails and cell phones to advance Albertsons's strategy.”

In its response to Kroger’s counterclaims, filed late last week, Albertsons asserts that “No Albertsons employee participated in any surreptitious scheme to undermine the merger, much less in exchange for future employment benefits.” Albertsons also insists that the communication between Morris and C&S was known to Kroger.

Albertsons also stated that “Kroger’s search for a divestiture buyer was disorganized, protracted, and contributed to the ultimate failure of the merger.”

In a response, a Kroger spokesperson said: “As Albertsons continues to deflect responsibility for its actions that ultimately undermined the proposed merger, Kroger is focused on delivering exceptional value to the communities we serve. We look forward to presenting our case in court where we intend to pursue our claims to the full extent of the law.”

3. The PG 100 and Annual Report Take Flight

PG released its highly anticipated list of the top food and consumables retailers in North America, otherwise known as The PG 100, this week to much fanfare. While the top-ranked companies haven’t changed much from last year, the 2025 list does show some notable changes elsewhere.  

The biggest upward climb was achieved by Heritage Grocers Group, which went from No. 90 to No. 75. The Hispanic and ethnic food retailer was most likely able to make the jump due to energized new leadership and expansion efforts. 

Along with The PG 100, Progressive Grocer’s 92nd Annual Report also rolled out this week. This year’s industry research and analysis reveals that retailers remain in caution mode, mindful of headwinds and uncertain forecasts. Read on for more of this year’s insights. 

4. Target's Disappointing Q1 Earnings, New Office

News from Target dominated this week’s most-read stories, starting with its Q1 earnings downturn that has yielded a series of executive moves and the formation of a special office that aims to improve how the retailer’s functions work together to advance key priorities. The new multi-year Enterprise Acceleration Office is also poised to drive greater speed and agility across Target’s operations, and will be led by Chief Operating Officer Michael Fiddelke.

Along with the new office, Target has made several executive moves that it says will more closely align key capabilities to support further speed and connection across its retail ecosystem.

Earlier in the week, Target unveiled a new program for Target Circle 360 loyalty program members that provides delivery from more than 100 retailers beyond Target with no same-day delivery price markups. The network of retailers includes CVS, PetSmart and Lowe’s Home Improvement, along with regional grocers like Hy-Vee, Lowes Foods and Giant Eagle.

5. Behind Amazon’s Grocery Revolution

PG Editorial Director Gina Acosta’s deep dive into Amazon’s grocery revolution went live this week, detailing the retailer’s transformative change that is due, in part, to the recent elevation of Whole Foods Market CEO Jason Buechel to oversee its overarching worldwide grocery business.

With total company revenue reaching $638 billion in 2024 – an 11% year-over-year increase – Amazon’s grocery segment is becoming an increasingly important pillar of its North American growth engine. More than ever, Amazon sees brick-and-mortar grocery as a vital segment where it can bring its customer obsession, operational excellence and relentless innovation to life.