The departure of Olson, who had been with Albertson's for 29 years, was covered in controversy. He is the second corporate executive to resign since the company acquired American Stores for $12 billion two years ago.

Dick King, former Albertson's president, resigned the day the merger – which more than doubled the size of Albertson's - was announced. King and Albertson's declined to comment on suggestions that King had questioned moving ahead with the merger.

The debt load created by that purchase, which expanded the company from 1,000 stores in 25 states to 2,500 stores in 36 states, severely stretched it financially, prompting comparatively anemic earnings in recent quarters.