Kroger Co. outlined a multi-year, self-funded plan to streamline operations for improved efficiency and accelerate growth by investing in areas of strength, such as own brands, membership and new market expansion.
Kroger reported its strategic plan as it reiterated its financial guidance for full-year 2026. In the second quarter, Kroger provided an outlook that included identical sales without fuel guidance growth in the range of 0.2% to 0.8%, with earnings per share coming in at $5.10 to $5.30.
In outlining its plan, Kroger introduced an updated financial framework intended to give investors a clearer view of the performance of the company’s core grocery business, including 3% comparable sales growth in 2029, excluding fuel and pharmacy, and 7% to 11% adjusted net earnings per share compound annual growth rate for fiscal 2027 through fiscal. The outlook excludes Kroger’s pending acquisition of Giant Eagle.
Kroger stated it intends to deliver more value for customers through a self-funded plan that includes investing in areas of strength, including own brands, membership, new market growth and fresh food and meals. The company said it expects to grow e-commerce sales and retail media revenue, win more consumer online shopping, and drive growth in its Kroger Precision Marketing program. Further, the company reported it anticipates generating savings through more direct sourcing, disciplined purchasing, streamlined processes and an improved, scalable operating model, with technology and AI boosting execution.
On a conference call, Kroger CEO Greg Foran said Kroger would advance by streamlining operations to drive key initiatives more effectively and move faster when opportunities arise, quickly scaling what works.
Foran said, “Kroger has a clear opportunity to unlock our full potential and build ‘America’s Favorite Grocer.’ We are making value more visible and focusing resources closer to the customer where we see the highest returns. With our customers at the center, we are simplifying and modernizing our business to deliver a great customer experience and provide long-term value to our shareholders.”
David Kennerley, Kroger’s CFO, added, “Our financial framework reflects our renewed focus on the core grocery business and provides a clearer line of sight from operating performance to shareholder value. We are targeting higher sales by 2029, with stronger adjusted EBITDA and adjusted EPS growth over the next three years. We remain focused on delivering customer value in a fully self-funded way, prioritizing high-return investments and disciplined cost savings so we can expand margins over time while continuing to invest in growth.”
