Kroger Bets $5 Billion on 110 New Stores and Three Fresh Formats

Kroger will open 110 stores over the next three years under three refreshed formats, part of a $5 billion investment aimed at roughly 3% comparable sales growth by 2029. Executives laid out the plan Tuesday at the company's investor day in New York City.

The new designs range from 50,000 square feet to 99,000 square feet. Each gives more space to meal solutions, fresh offerings and private label, said Mary Ellen Adcock, Kroger's executive vice president and chief merchant and marketing officer. Every store will also carry a redesigned e-commerce backroom with added capacity for pickup and delivery.

What do the three formats look like?

Adcock said the designs vary by size so Kroger can match individual markets:

• 99,000 square feet — built for markets she called "high volume, high opportunity."
• 75,000 square feet — a flexible design that can serve a broader range of markets.
• 50,000 square feet — a smaller footprint for markets where a compact store makes sense.

Kroger plans to open the 110 locations under its "Fresh" formats by 2029, alongside ongoing remodels. The formats shrink space for departments that "don't resonate as well with shoppers," Adcock said, naming general merchandise and apparel.

The new stores are smaller than the Marketplace locations Kroger has opened rapidly in recent years. Those stores run 99,000 to 130,000 square feet and stock a wide range of non-food items. Kroger has debuted them in states such as Kentucky and Texas, where it competes fiercely with regional rivals Publix and H-E-B.

How does technology fit in?

The formats lean into Kroger's connected store initiative. That includes an enhanced shopper app and artificial intelligence tools that support in-store staffers and free them for customer-facing tasks.

CEO Greg Foran said Kroger is investing in new in-store technology, including digital shelf labels, robotics and AI that will help the grocer act faster and update shelves more accurately.

What do the numbers say?

CFO David Kennerley said the new stores will be the biggest driver of Kroger's sales increase, generating approximately $7 billion in annualized incremental sales at maturity over the three-year period. Kroger will prioritize high-growth markets and add local density to strengthen its market position, he said.

Beyond the 3% comparable sales target, Kroger set several financial goals through 2029:

• 7% to 11% compound annual growth in adjusted net earnings per share, replacing an earlier target of 8% to 11%.
• 3% to 6% compound annual growth in adjusted EBITDA over the same period.

The format shift signals where Kroger sees growth: fresh food and digital fulfillment rather than big-box general merchandise. If the 110 stores hit Kennerley's $7 billion figure, new locations alone would deliver a substantial share of the sales gains Kroger has promised investors by 2029.