Kroger Unveils $5 Billion Customer-Value Plan, 2029 Growth Targets and 110 New Stores

KR used its Oct. 20 investor day to set a new long-term framework under CEO Greg Foran, who took over in February. The centerpiece is about $5 billion of investment in customer value through 2029, meaning lower prices and a simpler shopping experience rather than a capital spending program. CFO David Kennerley called it "the largest single driver in this plan" and said it is "entirely self-funded". Coverage of the plan also cites about 110 new stores by 2029.

The financial targets cover fiscal 2027 through 2029: adjusted EPS growth of 7%-11% a year and adjusted EBITDA growth of 3%-6% a year, plus about 3% comparable sales growth in 2029 excluding fuel and pharmacy. The sales figure is a single-year 2029 target, not an annual growth rate for the current year, and all of the targets exclude the pending Giant Eagle acquisition. The EPS target replaces the prior 8%-11% total shareholder return target. Kroger also reaffirmed its 2026 guidance without restating it.

Funding for the value push is expected to come from cost savings and from cutting lower-return, complex promotions, according to MarketBeat's reading of the plan. Reuters also reported that Kroger plans to cut about a third of corporate roles over three years using AI. Telsey Advisory Group reiterated its Outperform rating after the event. That was a reiteration, not an upgrade, with a $75 price target. Shares rose as much as 2.6% on the news, per Reuters.

Investors may watch how quickly price investment shows up in comparable sales, how the cost savings are delivered, and how much margin the value push absorbs. Telsey noted that adjusted EBITDA growth in 2027 is expected to fall below the three-year target range, so the early years may look weaker than the 2029 destination.