Kroger plans to build new stores despite cuts, interim CEO says
- Kroger's interim CEO, Ron Sargent, announced plans to increase new store construction in 2026.
- This comes after the recent closure of 60 unprofitable stores, with the savings being reinvested into the business.
Interim Kroger CEO Ron Sargent said June 26 that the retailer wants to ramp up new store construction in 2026.
While Kroger has invested heavily in recent years in its eCommerce business over the last decade, Sargent said during the company's annual shareholder meeting, the retailer's best customers shop both in stores and online.
He noted that while Kroger just announced it would shutter 60 unprofitable stores over the next 18 months, it plans to reinvest the savings back into the business, including opening new stores.
Kroger plans major renovations or stores for 30 sites
Sargent said Kroger will complete 30 "storing projects" (new stores or major renovations that frequently involve expansions) this year in line with recent years, but he's looking to increase that figure.
"Going forward, we're looking to increase these projects in 2026 and beyond ... We plan to build more new stores alongside our continued e-commerce investment," Sargent said, during the annual meeting, which was held virtually online.
Sargent's comments come nearly a week after the Cincinnati-based retailer announced the nationwide store closings that amount to 2% of its total 2,731 stores in 35 states and Washington, D.C., as the company reported its first quarter results. Kroger has said the Cincinnati, Northern Kentucky and Dayton division will be spared from the cuts.
Sargent replaced CEO who left abruptly
In 2025, Kroger plans to spend between $3.6 billion and $3.8 billion this year on capital expenditures – money for building new stores and expanding and renovating existing ones.
Earlier this year, Kroger announced it would spend $130 million in the Greater Cincinnati and Dayton region, including opening two new stores in Northern Kentucky, as rival Publix moves to the area.
Sargent, a Kroger board member and former Staples CEO, took the helm at the supermarket giant after the abrupt resignation of Rodney McMullen, who quit March 3, following an internal ethics investigation. The company is searching for a permanent replacement.