Kroger laid out a multi-year growth strategy at its New York investor update, targeting 3% comparable store sales growth by 2029 and a 3%-6% adjusted EBITDA compound annual growth rate from 2027 through 2029. The plan centers on three pillars: winning with customers through value and fresh food investment, growing digital and retail media revenue, and modernizing operations through direct sourcing, AI, and disciplined cost controls. The company is also reiterating its full-year 2026 guidance.
Fresh and meals are explicitly called out as a core investment area, which is directly relevant to produce buyers and category managers watching how America's largest traditional grocer prioritizes the department. The strategy follows Kroger's announcement of up to 3,000 corporate layoffs last week, with savings expected to flow back into lower prices for shoppers. Kroger has also recently pulled Boar's Head deli products and Red Bull from some stores, signaling a harder line on supplier terms.
For the produce industry, Kroger doubling down on fresh as a growth engine is meaningful — it could translate to stronger promotional support, expanded private label programs, and more direct sourcing arrangements. Watch for how the retailer executes on its "more direct sourcing" commitment as vendor negotiations heat up heading into 2027.