Kroger to invest $5 billion by 2029 as new CEO sharpens grocery focus

Oct 20 — Kroger unveiled a $5 billion investment plan to lower ​prices and improve the shopping experience, as part of new CEO Greg Foran's first strategy ‌to revive the grocer's core business amid intensifying competition and cautious ⁠consumer spending.

The company on ​Tuesday also set a ⁠target of about 3% core comparable sales growth ‌by 2029, sending ‌shares up as much as 2.6%.

Here are some ⁠details:

• The investment, which ⁠will be realized by 2029, would also focus on simplifying promotions, elevating merchandising, refreshing store formats and boosting loyalty programs, the company said during its investor day

• "A $5 billion investment in customer value ‌is the largest single driver ​in this plan and it is entirely self-funded," CFO David Kennerley said

• Ahead of the investor day, Kroger said it would invest in fresh foods, prepared meals, private-label products and its membership program

• Foran, who became CEO in February, said ​in a memo this month that Kroger plans to ‌cut about ‌a ⁠third of its corporate roles over three years, using AI to reduce duplicative work

• Kroger also said on Tuesday it would target growth in e-commerce and ‌retail media for higher-margin ​revenue options

(Reporting by Shania ‌S Thomas, Juveria ⁠Tabassum, Sanskriti ​Shekhar and Anuja Bharat Mistry in Bengaluru; Editing by ​Vijay Kishore)

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