Numerator's latest market share data shows Costco has overtaken Kroger in food and beverage spending, with Costco capturing 8.4% versus Kroger's 8.2%. Amazon, combined with Whole Foods, is closing in fast at 8.1% of broader CPG spending. In response, Kroger announced at its Investor Day that it plans to open 110 new stores by 2029 across three footprint sizes and is redesigning store layouts to put food — particularly fresh foods and prepared meals — at the center of the experience.
The market share shift is a meaningful signal for produce suppliers. Kroger is now under pressure from both warehouse clubs and online platforms simultaneously, which is why fresh produce is central to its repositioning strategy. The retailer has also pledged $5 billion in price investment to win back shoppers. Store redesigns that emphasize fresh will likely mean increased category space, but also more scrutiny on supplier performance, consistency, and cost.
Producers and distributors with Kroger programs should watch for changes in merchandising expectations, planogram resets, and promotional structures tied to the new store format rollout over the next three years.