Kroger to increase new store builds in 2026; Q3 e-commerce sales jump 17%
The Kroger Co. reported strong sales for its third quarter as its digital business surged and said it expects to appoint a new CEO during the first quarter of 2026.
On the company’s earnings call, chairman and interim CEO Ron Sargent said the company plans to accelerate capital investment in new stores beyond 2025 to strengthen its competitive position, expand into high-potential geographies and support long-term growth.
“We expect to break ground on 14 new stores in the fourth quarter, marking a meaningful acceleration in activity, Sargent told analysts. “When you look at 2026, we expect to increase new store builds by 30%.”
Sargent also said that Kroger has opportunities to grow through acquisition — something it hasn’t ruled out “despite our last few years with Albertsons.”
“When you look at our long-term aspiration, we expect and plan to be a national retailer,” he said.
Earlier this quarter, Kroger announced expansion plans for Harris Teeter, which Sargent called one of the company’s strongest and most successful banners. The plans include opening additional new stores in the Southeast and entering Jacksonville, Fla., which is an important adjacent geography that positions us to grow households and gain share.
In May, Kroger named Sargent as interim CEO after chairman and CEO Rodney McMullen resigned from the company following a board investigation of his personal conduct that “inconsistent” with Kroger's policy on business ethics. On the call, Sargent said the company has been engaged in a "thorough process" and expects to appoint a new CEO during the first quarter of 2026.
On the tech side, Kroger plans to introduce new Agentic shopping capabilities, starting with Instacart's AI-powered cart assistant on the Kroger website and mobile app in the first quarter of 2026. The cart assistant will help customers shop more effortlessly by making it easier to build personalized baskets, find meal ideas, and save time, Sargent said.
Third Quarter
The grocery store giant posted a loss of $1.32 billion, or $2.02 a share, in the quarter ended Nov. 8. That compares with a profit of $618 million, or $0.85 a share, in the year-ago period. Taking out .one-time costs, Kroger posted earnings of $1.05 a share.
Total company sales rose to $33.9 billion from $33.6 billion for the same period last year, which included $387 million from Kroger Specialty Pharmacy sales. Excluding fuel and Kroger Specialty Pharmacy, sales rose 2.6% versus the same period last year.
In other results, Kroger’s e-commerce sales surged 17%. The company’s identical sales without fuel increased 2.6%
"Kroger delivered another quarter of strong results reflecting meaningful progress on our strategic priorities,” Sargent stated in the earnings release. “Our e-commerce business posted another quarter of impressive performance. We have now completed our strategic review which we expect will make our e-commerce business profitable in 2026."
Kroger’s latest financial results have led it to revise its guidance.
“We are pleased with the continued momentum in our business, with particularly strong performance from e-commerce and pharmacy,” said Kroger CFO David Kennerly. “Given our year-to-date results and outlook for the remainder of the year, we are narrowing our identical sales without fuel guidance to a new range of 2.8% to 3.0% and raising the lower end of our adjusted earnings per share guidance to a new range of $4.75 to $4.80.”