Kroger Co. is setting in motion plans for substantial price reductions across its banners as new Chief Executive Officer Greg Foran pushes to reclaim sales and share from major rivals, including his former employer Walmart Inc.
In his first interview since taking the helm in February, Foran said Kroger - the largest U.S. grocery company operating 21 chains - will trial and roll out lower prices across thousands of items. The aim is to make the retailer more competitive on value, a dimension where competitors have made inroads, he said.
"I think about our business a bit like a Formula One race. There's a lead group of cars that are doing a very good job," Foran said. "Our objective is to get out of the midfield and start lapping faster, make up the gap on the first-group cars and then ideally pass them."
Foran explicitly named Walmart, Costco Wholesale Corp., Trader Joe's, Aldi and Amazon.com Inc. as chains and platforms that have gained traction by focusing on value. Kroger's leadership plans to fund the price reductions by importing merchandise directly and by using technology more effectively to reduce operating costs.
"The reality is, the basket has to come down. And not everyone's basket is the same," Foran said. "It needs to be across thousands of products, and it has to be something that passes the commonsense piece with customers."
The move toward lower prices arrives as consumers grow more cautious amid rising inflation and reduced government benefits. Foran also flagged shopper concerns about fuel prices in the wake of conflict in Iran and the potential for future price increases.
Beyond pricing, Kroger is working to strengthen in-store service and accelerate its growth plans. The company expects to open 70 to 80 new stores next year - roughly double the number planned for 2026 - even as it will close some locations, leaving overall store count on an upward trajectory.
Foran described a strategic framework the company refers to as the five Fs: fresh, fast, affordable, friendly and for you - the last element referring to tailoring stores to neighborhood preferences and needs.
- Fresh - emphasis on product quality and perishables.
- Fast - improving speed and convenience in-store.
- Affordable - broad price reductions across product categories.
- Friendly - enhancing customer service.
- For you - personalization at the store and neighborhood level.
In addition to operational changes, Kroger is exploring acquisition opportunities, with attention to the Northeast where its presence is limited and in faster-growing markets such as Texas, the Carolinas and parts of Florida.
"Our objective is to execute what we think is a very clear, sensible plan. We want to be America's best grocer," Foran said.