KRNYSERetail-Grocery StoresUS GAAP · USD

The Kroger Company

Kroger Co. is a U.S. grocery retailer built around supermarkets, pharmacies, fuel centers, and digital shopping channels. The company also monetizes customer traffic through alternative profit businesses such as data and analytics services and third-party media, which support reinvestment into the core retail operation.

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Revenue147.6bn USD
+0.4 %y/y
Operating profit (EBIT)1,890m USD
−50.9 %y/y
EBIT margin1.3%
−1.3 ppy/y
Net income1,016m USD
−61.9 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

050100150200bn USD2021: 132.5 bn USD2021: EBIT 2.8 bn USD20212022: 137.9 bn USD2022: EBIT 3.5 bn USD20222023: 148.3 bn USD2023: EBIT 4.1 bn USD20232024: 150.0 bn USD2024: EBIT 3.1 bn USD20242025: 147.1 bn USD2025: EBIT 3.8 bn USD20252026: 147.6 bn USD2026: EBIT 1.9 bn USD2026147.61.9
RevenueOperating profit (EBIT)

Business

Share of revenue
Core grocery retail78 %

Fresh, center-store, and general merchandise sold through supermarkets.

Pharmacy and health & wellness10 %

Prescription drugs and related health services sold through store pharmacies.

Fuel7 %

Gasoline and related fuel sales at supermarket-linked fuel centers.

Digital commerce3 %

Pickup, delivery, and ship orders fulfilled through stores and fulfillment centers.

Alternative profit businesses2 %

Data, analytics, and retail media monetization tied to customer traffic and data.

Products

Reported · share of revenue
52.5%25.2%12.3%9.2%FY2026100 %
  • Non Perishable52.5 %
  • Perishable25.2 %
  • Pharmacy12.3 %
  • Supermarket Fuel9.2 %
  • Other Product0.8 %

Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Kroger serves U.S. households shopping for everyday groceries, fresh food, pharmacy items, and fuel, with a focus on value and convenience. Its customer base spans broad consumer demographics, but the company emphasizes growing households and loyalty through personalized offers, fresh food, and seamless omnichannel shopping. Business demand is driven by repeat trips, basket size, and the ability to capture customers across in-store, pickup, delivery, and ship.

Household grocery shoppers

Buy everyday food, fresh items, and household essentials for repeat trips and value.

Pharmacy and health customers

Use store pharmacies for prescriptions and convenience-linked health purchases.

Fuel customers

Purchase gasoline at Kroger fuel centers, often tied to loyalty and grocery spend.

Digital omnichannel shoppers

Buy through pickup, delivery, and ship for convenience and time savings.

Consumer brands and advertisers

Buy data, analytics, and media access to reach Kroger shoppers more effectively.

Strategy

Kroger’s strategy centers on Fresh, Our Brands, Data & Personalization, and Seamless, with the goal of growing households and customer loyalty. The company is also simplifying operations, expanding digital capabilities, and using retail traffic to scale higher-margin alternative profit businesses. Capital is being directed toward store improvements, supply chain efficiency, technology, and customer experience while maintaining investment-grade balance sheet discipline.

Fresh and private-label growthShort term

These categories strengthen differentiation, loyalty, and margin mix in a highly competitive grocery market.

Data, personalization, and retail mediaMedium term

Monetizing customer traffic creates higher-margin earnings that can be reinvested into the core business.

Seamless omnichannel fulfillmentMedium term

Pickup, delivery, and ship help Kroger defend share against digital and mass-market competitors.

Capital discipline and efficiencyShort term

Store remodels, supply chain, and technology investments are intended to improve productivity and free cash flow.

Geography

Kroger’s business is overwhelmingly U.S.-based, with supermarkets operating in 35 states and the District of Columbia. The company’s footprint is concentrated in local banner markets, which matters because store density supports logistics efficiency, loyalty, and omnichannel fulfillment. Kroger also owns and operates manufacturing plants in the U.S. that supply a meaningful share of its private-label volume.

Risks

Kroger faces intense competition from supermarkets, mass merchants, club stores, discounters, and digital delivery platforms, which can pressure traffic and pricing. The business is also exposed to cybersecurity, labor, weather, and supply chain disruptions because it depends on large store networks, customer data, and time-sensitive food distribution. Private-label, pharmacy, and fuel add complexity and can amplify margin volatility when input costs, regulation, or consumer behavior shift.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Intense competitive environment1Cybersecurity and privacy breaches2Labor availability and labor disputes3Weather and natural disasters4Consumer behavior shifts5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Intense competitive environmentImpact: HighLikelihood: Medium

    Customers can switch among retailers, delivery platforms, mass merchants, and discounters quickly.

    ExposureStore trafficPricingLoyalty
  2. Cybersecurity and privacy breachesImpact: HighLikelihood: Medium

    Kroger relies on customer data, digital ordering, and payment systems that are attractive attack targets.

    ExposureOperationsReputationRegulatory claims
  3. Labor availability and labor disputesImpact: MediumLikelihood: Medium

    Store and distribution operations require large frontline workforces and are sensitive to wage and staffing pressure.

    Exposure: Operating costs and service levels

  4. Weather and natural disastersImpact: MediumLikelihood: Medium

    A large store and distribution footprint can be disrupted by hurricanes, floods, storms, and wildfires.

    Exposure: Store operations and supply continuity

  5. Consumer behavior shiftsImpact: MediumLikelihood: Medium

    Changes in at-home cooking, prepared foods, and digital shopping patterns affect basket mix and margins.

    Exposure: Sales mix and profitability

Accounting

Judgemental items
Goodwill impairment

Kroger tests goodwill annually and on triggering events; assumptions can materially change carrying values.

Impact: Could create non-cash charges if reporting unit values decline

Long-lived asset impairment

Store and facility values depend on projected cash flows, inflation, and competition assumptions.

Impact: Affects operating income and asset carrying values

Store closures and restructuring charges

Closure-related costs can be significant when Kroger rationalizes the store base or relocates sites.

Impact: Creates non-recurring expense and cash outflows

Merger-related and litigation costs

Legal and transaction-related items can materially affect comparability across periods.

Impact: Distorts underlying earnings trends

Settlement and reserve estimates

Opioid settlement charges and vendor reserves require judgment and can change with new information.

Impact: Affects liabilities and reported earnings

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Last updated: 24/09/2026