Kroger to focus on grocery business under new CEO as competition heats up
KR•Kroger said it will focus on its core grocery business under CEO Greg Foran, investing in fresh food, prepared meals, private-label products and membership while using technology and AI to cut costs. It expects about 3% core comparable sales growth in 2029.
1. Core grocery priorities
Kroger outlined its first plan under CEO Greg Foran, saying it will invest in fresh foods, prepared meals, private-label products and its membership program. It also plans to grow e-commerce and retail media as higher-margin revenue options.
2. Costs and targets
The company said it will save costs through direct sourcing and by using technology and AI to simplify operations. Kroger expects about 3% core comparable sales growth in 2029; Foran said earlier this month that the company plans to cut about a third of corporate roles over three years by using AI to reduce duplicative work.
3. Competitive pressures
Kroger and other mid-tier grocers face competition from Walmart, which is cutting prices, and discount retailers such as Aldi. Kroger cut its annual identical sales forecast in September but maintained its profit targets, relying on cost controls amid weak sales and high input costs.
