Kroger Targets 3% Same-Store Sales Growth by 2029

Kroger told investors on Tuesday it expects 3% comparable sales growth in 2029, excluding fuel and pharmacy, plus a 3%-6% adjusted EBITDA compound annual growth rate from fiscal 2027 through fiscal 2029. The Cincinnati grocer laid out the targets at an Investor Update in New York City while reiterating its full-year 2026 guidance.

Chief Executive Greg Foran framed the plan as a reset. "Kroger has a clear opportunity to unlock our full potential and build America's Favorite Grocer," Foran said. "We are making value more visible and focusing resources closer to the customer where we see the highest returns. With our customers at the center, we are simplifying and modernizing our business to deliver a great customer experience and provide long-term value to our shareholders."

That's the promise. The mechanics are worth a closer look.

What are the three pillars?

Kroger's updated strategy rests on:

• Win with the customer. A self-funded plan to deliver more value, investing in Fresh and meals, growing Our Brands penetration, expanding Boost membership and entering markets where Kroger sees attractive returns.
• Drive profitable digital growth. Kroger expects to grow ecommerce sales and Retail Media revenue, and accelerate Kroger Precision Marketing.
• Modernize how it operates. Savings from more direct sourcing, disciplined purchasing, streamlined processes and a more scalable operating model, with technology and AI improving execution.

The company says those savings will fund customer value and growth across the business. In plain words: Kroger wants cost cuts to pay for lower prices, not margin expansion alone.

Where will the savings come from?

The plan's timing isn't accidental. Kroger announced last week it will lay off up to 3,000 corporate workers, and some of those savings could go toward lowering prices. A self-funded value plan and a 3,000-person headcount cut arrived within days of each other.

Kroger is also pressing suppliers harder. It pulled Boar's Head deli products from some stores for about a month — widely read as a pricing dispute — and it no longer carries Red Bull. Neither move was named in the investor materials, but both fit the "disciplined purchasing" language in the strategy.

Notably absent from the announcement: specific dollar figures for the cost savings, a timeline for the AI-driven operational changes, or any target for how much of the 3% sales growth comes from new markets versus existing stores.

What does this mean for the bottom line?

A 3%-6% EBITDA CAGR over three years is a moderate ask for a grocer of Kroger's scale — roughly in line with what mature food retailers deliver in good years, not a stretch target. The 2029 comparable sales goal of 3% excludes fuel and pharmacy, which strips out two of the more volatile categories.

The real test is execution. Foran is promising visible value, digital profitability and modernized operations at the same time, funded substantially by layoffs and supplier pressure. If the savings don't materialize or customers don't see the price relief, the 2029 targets get harder to hit.