Kroger has outlined a multi-year strategy aimed at accelerating growth and increasing its market share. The Cincinnati-based grocer presented its updated approach in New York City, outlining three main pillars to guide operations through the coming decade. This plan emphasizes a stronger focus on the customer while improving efficiency across the company.
Three priorities for the future
The strategy centers on delivering more value to shoppers. Kroger will invest in its Fresh and meals sections, grow its private-label Our Brands penetration, and expand its Boost membership program. The company also plans to enter new markets where it sees attractive returns. Additionally, Kroger aims to increase its ecommerce sales and Retail Media revenue, a sector that includes Kroger Precision Marketing.
To support these goals, the company will modernize its operating model. Officials expect to generate savings through more direct sourcing, disciplined purchasing, and streamlined processes. Technology and artificial intelligence will play a key role in improving execution. These savings are intended to fund greater customer value and support growth across the business.
Despite the strategic push, Kroger has faced recent headwinds. The company announced plans to lay off up to 3,000 corporate workers last week to cut costs. It has also taken a tougher stance on suppliers, pulling Boar’s Head deli products from some stores for a month and removing Red Bull Energy Drink from its shelves. These moves suggest the company is prioritizing profitability alongside its growth targets.
For the long term, Kroger projects 3% comparable sales growth by 2029. This figure excludes fuel and pharmacy sales. The company also anticipates a 3% to 6% adjusted EBITDA compound annual growth rate for the fiscal years 2027 through 2029. CEO Greg Foran stated the goal is to unlock the company’s full potential and build on its status as America’s Favorite Grocer.
Bill Wilson, Executive Editor at Supermarket News, is the executive editor at Supermarket News, covering all things grocery and retail. He has been a journalist in the B2B industry for 25 years. He has received two Robert F. Boger awards for his work as a journalist in the infrastructure industry and has over 25 editorial awards total in his career.
