The Kroger Co. outlined a multiyear plan to accelerate growth at its Investor Update in New York on Oct. 20, targeting approximately 3 percent comparable sales growth, excluding fuel and pharmacy, in 2029, and reaffirming its full-year 2026 guidance.
“Kroger has a clear opportunity to unlock our full potential and build America’s Favorite Grocer,” said CEO Greg Foran. “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.”
The updated strategy centers on three pillars:
- Win with the customer: Delivering more value through a self-funded plan, investing in areas of strength including fresh and meals, growing Our Brands penetration and Boost membership, and expanding into markets with attractive returns.
- Drive profitable digital growth: Growing e-commerce sales and retail media revenue, winning more of customers’ online shopping and accelerating Kroger Precision Marketing.
- Modernize operations: Generating savings through more direct sourcing, disciplined purchasing, streamlined processes and a more scalable operating model, with technology and AI improving execution.
Financial framework
Kroger’s updated framework – which excludes the pending Giant Eagle acquisition – targets 3 to 6 percent adjusted EBITDA compound annual growth and 7 to 11 percent adjusted net EPS growth for fiscal 2027 through 2029. The new EPS target replaces the previous 8 to 11 percent total shareholder return target, which included the dividend yield, and implies a stronger earnings outlook. Capital allocation remains focused on high-return growth investments, financial strength and returning surplus capital through dividends and buybacks.
“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,” said David Kennerley, CFO of Kroger. “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.”
The investor update included presentations from several company executives on customer value, e-commerce, retail media, store execution and operations. Additional coverage is forthcoming.