Shares of Delhaize (DEG) dropped more than 6% in Wednesday morning trading after the supermarket operator revealed that it had found a new chief executive.
The Belgium-based company, which generates most of its revenue in the U.S., said that it has tapped Frans Muller to become its new CEO. Muller will replace Olivier Beckers, who announced plans to resign in May. Delhaize also noted that the head of its U.S. unit had stepped down. The new CEO will manage that unit directly, Reuters noted.
Beckers had launched an effort to reverse sliding sales at its U.S. supermarkets, a strategy Muller is expected to continue. The company runs about 3,400 supermarkets worldwide, including the Food Lion chain in the U.S. It has been under pressure from lower consumer spending and increased grocery sector competition in the U.S.
Muller was formerly the chief executive at Cash & Carry, a retail chain operated by Germany’s Metro. He departed the company earlier this year after it announced weaker-than-expected results. He takes the reins at Dehaize on November 8.