What Happened to The Kroger Co.?
Kroger, one of America's largest grocery retailers, has recently navigated the collapse of its proposed $25 billion merger with Albertsons, pivoting to a strategy focused on organic growth, digital innovation, and strategic acquisitions. As of mid-2026, the company is expanding its physical footprint, integrating AI into operations, and has acquired Giant Eagle, while also facing ongoing litigation related to the failed Albertsons deal.
Quick Answer
Kroger's planned $25 billion merger with Albertsons was blocked by federal regulators in late 2024, leading to its termination and subsequent legal disputes between the two companies. In response, Kroger has refocused on its core business, implementing a 'Project Fresh Start' strategy under new CEO Greg Foran, appointed in February 2026. This includes accelerating new store openings, optimizing its e-commerce model, integrating AI for customer experience and efficiency, and making strategic acquisitions, such as Giant Eagle in July 2026. The company reported steady Q1 2026 results with growth in sales and e-commerce, despite ongoing market pressures.
📊Key Facts
📅Complete Timeline15 events
Bernard Kroger Founds The Great Western Tea Company
Bernard Kroger invested his life savings to open his first grocery store in Cincinnati, Ohio, laying the foundation for The Kroger Co.
Incorporated as Kroger Grocery and Baking Co.
The company was formally incorporated, reflecting its early expansion and integration of baking facilities to control supply and costs.
Merger with Fred Meyer, Inc.
Kroger merged with Fred Meyer, Inc. in a $13 billion deal, significantly expanding its geographic reach and making it the nation's largest retail grocer.
Acquisition of Harris Teeter
Kroger acquired Harris Teeter, expanding its presence in the Mid-Atlantic states and enhancing its market position.
Proposed Merger with Albertsons Announced
Kroger announced a definitive agreement to merge with Albertsons Companies in a $25 billion deal, aiming to create a stronger competitor in the grocery market.
Albertsons Merger Blocked by Federal Judge and Terminated
A U.S. federal judge blocked the proposed Kroger-Albertsons merger following opposition from the FTC and state attorneys general, leading to the termination of the deal.
Kroger Announces Share Repurchase and Lawsuit Against Albertsons
Following the failed merger, Kroger announced a $7.5 billion stock buyback program and initiated legal action against Albertsons.
Plans to Close 60 Underperforming Stores by End of 2026
Kroger announced plans to close approximately 60 underperforming stores by the end of 2026 as part of an effort to improve performance and reallocate resources.
Shift in E-commerce Strategy and Increased Store Builds
Kroger announced a shift to a hybrid e-commerce fulfillment model, closing some automated centers and expanding third-party delivery partnerships, while also planning a 30% increase in new store builds for FY 2026.
Greg Foran Appointed CEO
Greg Foran, former CEO of Walmart U.S., was appointed as Kroger's new CEO, signaling a leadership reset and a focus on operational discipline.
Launches 'Verified Savings Program' and AI Shopping Assistant
Kroger introduced a 'Verified Savings Program' for government assistance recipients, new high-protein private-label products, and announced a partnership to deploy an AI-driven personal shopping assistant.
Reports Q4 2025 Earnings and Announces New Market Expansion
Kroger reported its Q4 2025 earnings, reaffirming its 2026 guidance and announcing plans to expand into new high-potential markets like Jacksonville and Kansas City.
Reports Strong Q1 2026 Results
Kroger announced its first-quarter 2026 results, reporting $46.1 billion in sales, 1.0% identical sales growth without fuel, and strong e-commerce performance.
Acquires Giant Eagle
Kroger completed the acquisition of Giant Eagle for $1.65 billion, marking a significant expansion into the Northeast and strengthening its market share.
Legal Battle with Albertsons Continues
The legal dispute between Kroger and Albertsons over the failed merger continues, with Albertsons seeking damages from Kroger for the termination of the deal.
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🔍Deep Dive Analysis
The Kroger Co., a long-standing giant in the American grocery landscape, has experienced a transformative period marked by a high-profile failed merger, a strategic pivot, and renewed focus on organic growth and innovation. The most significant event was the proposed $25 billion merger with rival Albertsons, announced in October 2022. This deal aimed to create a formidable competitor against Walmart and other large retailers. However, it faced intense scrutiny from federal and state regulators, including the Federal Trade Commission (FTC) and attorneys general from states like Washington and Colorado, who argued it would reduce competition, lead to higher prices for consumers, and negatively impact workers' wages.
Despite an updated divestiture plan in April 2024 to sell over 400 stores to C&S Wholesale Grocers, the merger was ultimately blocked by a U.S. federal judge in December 2024, leading to its formal termination. The collapse of the merger triggered a bitter legal dispute, with Albertsons pursuing legal action against Kroger for billions in damages, alleging Kroger failed to secure regulatory approval. This litigation continues to be a significant factor for both companies as of August 2026.
Following the merger's failure, Kroger initiated a strategic reset, dubbed 'Project Fresh Start,' under new leadership. Rodney McMullen, the long-time CEO, resigned in early 2025 amidst an ethics investigation, and Greg Foran, former CEO of Walmart U.S., was appointed CEO in February 2026. This new direction emphasizes operational efficiency, digital transformation, and a store-centric hybrid e-commerce model. In late 2025, Kroger made a decisive move to shutter several underperforming automated fulfillment centers, taking a $2.6 billion non-cash impairment charge, and instead expanded relationships with third-party delivery providers like Instacart, DoorDash, and Uber Eats to leverage its existing store network for faster delivery.
Kroger is actively expanding its physical footprint, with plans to increase new store openings by 30% in fiscal year 2026, including expansion into new markets like Jacksonville and Kansas City. While also closing approximately 60 underperforming stores by the end of 2026 to reallocate resources to stronger markets, the company is investing heavily in new 'Marketplace' projects. Innovation is also a key focus, with the launch of a 'Verified Savings Program' offering discounts to customers on government assistance, the introduction of new high-protein private-label products, and a partnership with Gemini Enterprise to deploy an AI-driven personal shopping assistant in 2026.
Financially, Kroger reported solid first-quarter 2026 results (ended May 23, 2026), with total sales of $46.1 billion, a 1.0% increase in identical sales without fuel, and adjusted EPS of $1.58. The company also authorized an additional $2 billion share repurchase in December 2025, expected to be completed by the end of fiscal 2026. A significant development in July 2026 was Kroger's acquisition of Giant Eagle for $1.65 billion, marking its first major move into the Northeast and expanding its market share, particularly in the Pittsburgh area. As of August 11, 2026, Kroger continues to streamline operations, invest in technology and store growth, and navigate the post-merger legal landscape, aiming to solidify its position as a leading grocery retailer.
What If...?
Explore alternate histories. What if The Kroger Co. made different choices?