Kroger to focus on grocery business under new CEO as competition heats up

Oct 20 (Reuters) - Kroger KR.N said it would focus on its core grocery business under CEO Greg Foran's first plan shared with investors on Tuesday, as the company tries to claw back ground from bigger rivals amid weak consumer spending.

Here are some details:

• The grocer will invest in fresh foods, prepared meals, private-label products and its membership program, it said in a statement ahead of its investor day

• Kroger said it will save costs by sourcing directly, while using technology and AI to simplify operations

• Kroger plans to cut about a third of its corporate roles over the next three years by using AI to reduce duplicative work, CEO Foran had said in a memo earlier this month

• Mid-tier grocers such as Kroger and Albertsons ACI.N face intense competition as rivals such as Walmart WMT.O cut prices to drive traffic, while discount retailers such as Aldi rely on cheaper pantry staples to draw in shoppers

• The company said on Tuesday it would target growth in e-commerce and retail media for higher-margin revenue options

• Kroger expects about 3% core comparable sales growth in 2029

• Shares of the company were up about 2% in premarket trading

• The grocery retailer cut its annual identical sales forecast in September but stuck to profit targets, banking on cost controls to cushion the hit from weak sales and high input costs