Kroger Sells Vitacost.com Wellness Unit to iHerb to Refocus on Grocery Core

KRKR

Kroger completed the sale of its Vitacost.com online wellness unit to iHerb as part of a strategic portfolio review. The divestiture frees up capital for Kroger to focus on its core grocery operations and invest in supply chain and food retail enhancements.

1. Kroger Expands Generative AI Partnership with Google Cloud

On January 11, 2026, Kroger announced it will deploy Google Cloud’s Gemini Enterprise for Customer Experience across its entire U.S. network, leveraging agentic AI to power a new personal shopping assistant. The Meal and Shopping assistants will integrate recipe inspiration, automated cart building and real-time product availability—drawing on Kroger’s proprietary data on assortment, pricing and inventory. By embedding Customer Experience Agent Studio into its call centers, Kroger aims to resolve customer issues 30% faster and boost associate productivity by up to 20%. With more than 400,000 associates serving over 11 million customers daily, Kroger expects the initiative to drive digital same-store sales growth in excess of 5% annually and deepen customer engagement through hyper-personalized offers and seamless omnichannel experiences.

2. Kroger Completes Sale of Vitacost to iHerb to Sharpen Core Grocery Focus

Kroger has finalized the divestiture of its online wellness business, Vitacost.com, to iHerb as part of a strategic portfolio review aimed at concentrating resources on its core food retail operations and supply chain modernization. The transaction, announced in December 2025 and closed this month, is expected to free up approximately $200 million in working capital over the next fiscal year. Management plans to redeploy those funds into store remodels, cold-chain logistics upgrades and expanded eCommerce fulfillment capacity. Kroger executives estimate these investments will reduce out-of-stocks by 15% and shorten delivery windows by an average of four hours, reinforcing the company’s commitment to speed, convenience and value in grocery shopping.

Sources

BP