Kroger is introducing three updated store formats as part of a strategy to open 110 new locations over the next three years, according to company executives who outlined the plans at an investor day event on Tuesday.
New Store Designs and Investment Goals
The refreshed store concepts range from 50,000 to 99,000 square feet, providing expanded space for meal solutions and fresh offerings while incorporating additional in-house e-commerce fulfillment areas where needed. These new formats represent the company’s connected store initiative, which integrates enhanced app functionality and artificial intelligence technology to support staff and improve customer service.
Mary Ellen Adcock, Kroger’s executive vice president and chief merchant and marketing officer, explained that the designs aim to create a food-first experience by expanding fresh departments, meal solutions, and private label offerings. Each store will feature a redesigned e-commerce backroom with increased capacity for pickup and delivery services. The smaller 50,000-square-foot format allows Kroger to enter markets where a reduced footprint makes sense, while the 75,000-square-foot design serves a broader range of markets. The largest 99,000-square-foot model targets high-volume, high-opportunity locations.
This initiative forms part of the company’s $5 billion investment in stores, operations, and pricing. The company aims for approximately 3% comparable sales growth by 2029. The new formats reduce space allocated to general merchandise and apparel, areas that have shown weaker performance with shoppers.
Technology Integration and Market Position
The redesigned stores will feature digital shelf labels, robotics, and AI systems intended to help the grocer respond more quickly and maintain accurate inventory. These technologies support Kroger’s broader strategy of reducing reliance on non-food items while strengthening its core grocery offerings. The new formats differ from the company’s existing Marketplace stores, which range from 99,000 to 130,000 square feet and include extensive non-food merchandise.
According to Chief Financial Officer David Kennerley, the new stores are expected to drive the majority of sales growth, generating roughly $7 billion in annualized incremental sales when fully mature. The company will prioritize opening locations in high-growth markets to increase local density and strengthen its competitive position. The company is also targeting 7% to 11% compound annual growth in adjusted net earnings per share through 2029, adjusting from a previous 8% to 11% goal.
Additionally, Kroger aims for 3% to 6% compound annual growth in earnings before interest, taxes, depreciation, and amortization during the same period. CEO Greg Foran emphasized that the new store formats, combined with technological upgrades and strategic market expansion, positions the company to better compete with regional rivals in key markets across the United States.
