Kroger to invest $5 billion by 2029 as new CEO sharpens grocery focus (updated)

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Updates shares, adds details throughout
Oct 20 (Reuters) - Kroger KR.N unveiled a $5 billion investment plan to lower prices and improve the shopping experience, as part of new CEO Greg Foran's first strategy to revive the grocer's core business amid intensifying competition and cautious consumer spending.
The company on Tuesday also set a target of about 3% core comparable sales growth by 2029, sending shares up as much as 2.6%.
        
Here are some details:
The investment, which will be realized by 2029, would also focus on simplifying promotions, elevating merchandising, refreshing store formats and boosting loyalty programs, the company said during its investor day
"A $5 billion investment in customer value is the largest single driver in this plan and it is entirely self-funded," CFO David Kennerley said
Ahead of the investor day, Kroger said it would invest in fresh foods, prepared meals, private-label products and its membership program
Foran, who became CEO in February, said in a memo this month that Kroger plans to cut about a third of its corporate roles over three years, using AI to reduce duplicative work
Kroger also said on Tuesday it would target growth in e-commerce and retail media for higher-margin revenue options


 (Reporting by Shania S Thomas, Juveria Tabassum, Sanskriti Shekhar and Anuja Bharat Mistry in Bengaluru; Editing by Vijay Kishore)
 ((Juveria.Tabassum@thomsonreuters.com))