NEW YORK – Kroger is rolling out three new store formats as part of a major growth initiative that includes opening 110 locations over the next three years, company executives said Tuesday during the company’s investor day here.
The redesigned stores, ranging from 50,000 to 99,000 square feet, will place greater emphasis on fresh foods, meal solutions and e-commerce fulfillment while dedicating less space to slower-growing categories such as apparel and general merchandise. The formats are a key component of Kroger’s broader $5 billion investment plan aimed at driving roughly 3% annual comparable sales growth through 2029.
Mary Ellen Adcock, Kroger’s executive vice president and chief merchant and marketing officer, said that the new stores are designed to accelerate growth in the retailer’s strongest-performing businesses: fresh foods, meal solutions and private label products.
Bill Schiffner
Each format will include upgraded backroom space to support pickup and delivery services, with capacity tailored to local demand. Kroger plans to continue remodeling existing stores while expanding its footprint through the new-format strategy.
The largest prototype, at 99,000 square feet, is targeted to high-growth, high-volume markets. A 75,000-square-foot model is intended for a broader range of communities, while a 50,000-square-foot format will allow Kroger to enter markets where a smaller footprint makes more sense.
"We're scaling our Fresh store format across approximately 110 new stores by 2029, alongside remodels. And our three formats are designed to meet the needs of each market. The 99,000 square foot is built for high volume, high opportunity markets. The 75,000 square foot serves a broad range of markets, and our smaller 50,000 square foot allows us to grow where a smaller footprint makes sense. So the size may vary, but the customer promise is the same, a food-first experience, built on data-driven items, convenience however customers choose to shop with us," she explained.
"These formats are also designed to benefit our associates and our customers with the connected store AI technology that allows our associates to spend more time on execution, sales, and serving our customers. The result is a flexible food-first format designed to improve productivity, increase economics, and deliver a differentiated experience for Kroger. And here's what the store that will make us America's Favorite Grocer looks like," she added.
The stores will also play a central role in Kroger’s connected-store strategy, integrating digital tools and AI-powered technology to improve operations and enhance the shopping experience. CEO Greg Foran said the company remains focused on technologies such as digital shelf labels, robotics and artificial intelligence to improve inventory accuracy and help store teams respond more quickly to customer needs.
The new concepts represent a shift from Kroger’s larger Marketplace stores, which typically range from 99,000 to 130,000 square feet and devote significant space to non-food merchandise. Marketplace locations have been a major growth vehicle for the grocer in recent years, particularly in markets such as Kentucky and Texas.
Chief Financial Officer David Kennerley said the new stores are expected to become Kroger’s largest source of future sales growth, generating approximately $7 billion in annualized incremental revenue once fully mature.
Kennerley added that Kroger will concentrate development in fast-growing markets, using increased store density to strengthen its competitive position and expand market share.
