Krogerwill cut grocery prices by $5 billion by 2029 and grow the retailer’s footprint by adding 110 new stores in the next four years, company executives told investors on Oct. 20.
The Cincinnati-based supermarket offered a bigger glimpse at its future plans during a presentation before Wall Street analysts in New York. Kroger’s newCEO Greg Foran has vowed to lower prices and make other changes to jumpstart the company’s sales growthsince taking the helm in February. During the presentation, he vowed to squeeze the grocer’s costs to help pay for investments in better prices for customers.
"Kroger has a clear opportunity to unlock our full potential and build America's favorite grocer," Foran said. "We are making value more visible and focusing
resources closer to the customer… we are simplifying and modernizing our business to deliver a great customer experience."
Kroger sales rebound will take time
Foran said the key to success was demonstrating more value to cash-strapped customers and leaning into already promising ventures, such as its growing house brands and eCommerce business. He added that expanding new regions (including through its pending acquisition of Giant Eagle) and using AI technology and more efficient sourcing will further help the retailer’s turnaround efforts.
But Kroger indicated a sales rebound was not in the immediate future. The grocer affirmed its modest sales projection for 2026 that was slashed by more than half in September.
Looking ahead, Kroger said its identical sales growth excluding fuel would pick up, growing at 3% a year in 2029. The goal comes a month after said identical store sales excluding fuel in 2026 will increase between 0.2% and 0.8%, down from a previous forecasted range of 1% to 2%, the company said. A key metric, identical store sales excluding fuel measure growth minus volatile gas prices as well as sales at new or closed stores.
A busy 2026 so far for Kroger
Foran’s strategy update comes after a busy eight months since he took the company’s helm in February as the company’s first-ever outsider to lead the company:
- On Oct. 12, Kroger emailed its administrative workers informing them the grocer would slash 3,000 of the retailer’s 8,200 corporate staff over the next three years, a cut of more than 35%. The memo offered few details, such as when the first cuts would take place, but the retailer’s corporate hometown will be impacted.
- In September, Kroger saw two high-profile disruptions with vendors, Boar’s Head deli products andRed Bullenergy drinks. Kroger has declined to comment on the development, but industry observers believe shipments were canceled due to pricing disagreements after Foran pledged to lower grocery prices.
- On July 1, Kroger announced it had strucka $1.65 billion dealto take over Pittsburgh-based Giant Eagle, which will add about 200 stores and $9 billion in annual sales (an increase of about 6%).
Kroger is the nation’s largest traditional supermarket chain
A Fortune 500 company based in downtown Cincinnati, Kroger operates nearly 2,700 stores in 35 states and the District of Columbia, including 77 in Greater Cincinnati. The company employs 403,000 workers, including nearly 20,000 in the Greater Cincinnati region.
The retailer operates stores under the Kroger banner name as well as Fred Meyer, Ralphs, Harris Teeter, Pick ‘n Save, Dillons, King Soopers, Mariano’s, Fry’s, QFC and others.
This article originally appeared on Cincinnati Enquirer: Kroger to slash $5B in prices, build 110 new stores by 2029, execs say
