As competition intensifies, Kroger will focus on its grocery business under the leadership of its new CEO.
Reuters, October 20 - Kroger (KR.N) said, according to the first plan disclosed to investors by CEO Greg Foran on Tuesday, that the company will focus on its core grocery business in an attempt to win back market share from larger competitors amid weakening consumer spending.
Specific details are as follows:
The company said in a statement released ahead of its “Investor Day” event that it would increase investment in fresh produce, ready-to-eat meals, private label products, and its membership program
Kroger said it would save costs through direct sourcing, while leveraging technology and artificial intelligence to streamline operations
Kroger CEO Foran (link) stated in a memo earlier this month that the company plans to cut about one third of group management positions over the next three years by reducing repetitive work through the use of artificial intelligence (link)
Mid-sized supermarket chains such as Kroger and Albertsons ACI.N are facing fierce competition, as rivals like Walmart WMT.O attract customers by lowering prices, while discount retailers such as Aldi are drawing shoppers in with cheaper everyday essentials (link)
The company said Tuesday it will focus on expanding its e-commerce and retail media businesses to tap into high-margin revenue sources
Kroger expects its core comparable sales to grow by about 3% in 2029
The company's shares rose about 2% in pre-market trading
The grocery retailer (link) lowered its annual same-store sales outlook in September but maintained its profit target, hoping to offset the impact of weak sales and high input costs through cost controls
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