Southern Hospitality Meets Modern Retail

Kroger is one of America’s largest grocers, but it’s also working to redefine what modern retail looks like. By embedding AI systems within a responsible operating framework, Kroger balances innovation with data protection and ethical protocols.

For fiscal year 2025 (ended February 1, 2025), Kroger reported $147.12 billion in revenue, a 1.94% decline from the prior year. The company employs about 409,000 people worldwide, running an extensive grocery network across the U.S.

A Purpose-Driven Brand

Kroger anchors its business in a clear purpose: Feed the Human Spirit^™, the belief that fresh, affordable food can uplift customers, employees, and communities alike.

That philosophy is expressed through:

• Mission: Be a leader in food, health, and personal care, earning long-term customer loyalty.
• Vision: Serve America through food inspiration and uplift, tying retail to societal impact.
• Values: Honesty, integrity, respect, diversity, safety, and inclusion.
• Consumer promise: Fresh for Everyone^™ quality food should be universal, not a privilege.
• ESG focus: Zero Hunger | Zero Waste, leveraging Kroger’s scale to end hunger and eliminate food waste in the communities it serves.
  

Together, these commitments frame Kroger as more than a grocer; it’s a brand that blends food access, ethical conduct, and community uplift.

Technology in Action

Kroger is deploying AI and automation to improve both operations and the customer journey:

• AI-driven monitoring detects transaction anomalies in real time.
• Digital simulations help optimize store layouts.
• Advanced labor platforms improve staffing accuracy.
• Robot-assisted processes streamline operations.
• Commerce media monetizes first-party data responsibly, powering precise yet ethical targeting.

By combining automation with evidence-based strategies, Kroger is improving operational efficiency while enhancing customer satisfaction.

Customer Experience Strategy

Kroger’s customer experience model relies on technology, consumer intelligence, and personalized service to meet shoppers’ needs in real-time.

• In-store traffic analytics and regional insights help optimize layouts and product assortments.
• Harmonized checkout options balance self-checkout with attended lanes.
• Customized promotions and faster fulfillment strengthen engagement.
• Staff investments and hunger relief programs build trust and loyalty.

The result is a shopping experience that’s both efficient and mission-driven.

Why Kroger Stands Out

Several factors give Kroger an edge in a crowded retail market:

• Store variety – different formats tailored to customer needs.
• Strong store brands – trusted private labels alongside national names.
• Seamless omnichannel shopping – blending in-store and online.
• Vertical integration – tighter control of supply chains and quality.
• Insight-driven personalization – boosting loyalty and engagement.
• Mission-driven initiatives – reinforcing credibility and social responsibility.

At the same time, Kroger is managing costs, adjusting its market footprint, and investing in sustainability. In 2025, the company will close ~60 underperforming stores while opening about 30 new ones, reallocating resources to enhance the customer experience.

Challenges Ahead

Like many large retailers, Kroger faces:

• Intense competition in a saturated market.
• Rising operating costs and supply chain disruptions.
• Higher fulfillment expenses are tied to e-commerce growth.
• Pressure to meet evolving expectations around sustainability and omnichannel convenience.
• Regulatory oversight and the challenge of balancing efficiency with brand pledges.

These hurdles require Kroger to constantly innovate while staying true to its core commitments.

Partnerships Powering Growth

Kroger’s transformation is supported by strong technology partners:

• Thoughtworks – driving more than 30 initiatives across five business units, including e-commerce, pick-up, delivery, and ship-to-home.
• Tangentia – helping businesses establish and maintain EDI connectivity with Kroger/Payton Group.

Together, these partnerships strengthen Kroger’s omnichannel presence and ensure compliance while supporting future growth.

BrandSensitize^™ research indicates that Thoughtworks is supporting Kroger across five business units on more than 30 initiatives. Thoughtworks is also helping Kroger build an omnichannel presence by backing programs like e-commerce, pick-up, delivery, and ship-to-home. Tangentia assists businesses in establishing their EDI connectivity with Kroger/Payton Group and ensures ongoing compliance with their EDI requirements.