Kroger expects 3 percent sales growth

Kroger projects 3% comparable store sales growth by 2029, excluding fuel and pharmacy, as part of a multi-year strategy to sharpen its focus on customers and operational efficiency. The company outlined its approach during an Investor Update in New York, reaffirming its financial guidance for 2026 while detailing plans to boost profitability through three core areas: customer value, digital expansion, and operational modernization.

Kroger’s first priority is to deliver more value to shoppers through a self-funded plan. The company will invest in high-margin segments like fresh produce and prepared meals, expand its private-label brands, and deepen its loyalty program, Boost. It also aims to enter new markets where returns are strongest, balancing growth with disciplined spending. Kroger expects to grow ecommerce sales and Retail Media revenue, winning more of customers’ online shopping and accelerating growth in Kroger Precision Marketing.

Behind the scenes, the company is streamlining operations to cut costs. Kroger expects to generate savings through more direct sourcing, disciplined purchasing, streamlined processes and a more scalable operating model, with technology and AI improving execution. These savings will fuel greater customer value and fund growth across the business. Kroger’s focus on the customer became clear when it announced it would be laying off up to 3,000 corporate workers last week to cut costs.

Kroger’s tougher stance on supplier terms has already reshaped its shelves. The retailer pulled Boar’s Head deli meats from some stores for a month, reportedly over pricing disputes, and removed Red Bull energy drinks entirely.

Kroger’s adjusted EBITDA is expected to grow at a 3% to 6% annual rate from 2027 to 2029. “Kroger has a clear opportunity to unlock our full potential and build America’s FavoriteGrocer,” said Greg Foran, CEO of Kroger. “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.”