Kroger Commits $5 Billion to Lower Prices, Cutting Corporate Roles

Kroger said at its investor update that it will spend $5 billion through 2029 on lower prices, funded internally. The grocer targets about $4 billion in annualized cost savings by 2029, roughly half from cost of goods, and plans to cut about one-third of corporate roles over three years.

New everyday shelf prices are set to reach about 250 stores by year-end and roughly 450 more in 2027. CEO Greg Foran, a former head of Walmart's U.S. business, said the plan is not about being the cheapest. Pilot stores running the pricing for a full year grew sales about 230 basis points faster than the rest of the chain.

Kroger reaffirmed 2026 adjusted EPS guidance of $5.10 to $5.30 and set targets of 7% to 11% annual EPS growth through 2029. Recent identical sales excluding fuel rose just 0.2%, so investors will watch whether lower prices lift traffic.