Kroger digital sales growth far outpaced identical sales overall (which include ecommerce) in its fiscal Q4 2025, which ended Jan. 31, 2026.
Identical sales — which include those from stores Kroger operated in the prior year’s Q4 as well as those from ecommerce — increased 2.4% year over year. Meanwhile, total Kroger sales in Q4 2025 were $34.7 billion, or 1.2% more than its $34.31 billion in 2024. Excluding fuel, the retailer said, Q4 sales increased 2.1% year over year.
For its fiscal full-year 2025, Kroger sales were close to flat, totaling $147.64 billion. That’s 0.35% more than in 2024, when Kroger sales were $147.12 billion. The retailer said that when excluding fuel and pharmacy (the latter of which accounted for $2 billion), full-year sales increased 3%.
Although Kroger has a new CEO, Greg Foran, as of Feb. 9, former interim CEO Ron Sargent took the lead in addressing investors on the retailer’s quarterly earnings call. Sargent welcomed Foran while praising Foran’s ability to “run great stores and build a strong ecommerce business.”
Kroger lowered prices and offered more promotions again in the quarter, Sargent told investors. He said that improved the grocery chain operator’s “value perception” among consumers.
“What I’ve seen so far has reinforced my belief that Kroger has tremendous strengths to build on,” Foran said. “We have a loyal customer base, dedicated associates, a strong store network and real momentum in areas like fresh, ecommerce and Our Brands.”
Kroger ranks No. 6 in Digital Commerce 360’s Top 2000 Database. The database ranks North America’s largest online retailers by their annual ecommerce sales. Furthermore, Kroger is No. 1 in the database’s Food & Beverage category, though it competes with Mass Merchants — Walmart and Target — that rank higher in the Top 2000 for online grocery sales.
Kroger digital sales in Q4 2025
In its fiscal Q4 2025, Kroger digital sales increased 20% year over year. That excludes the effect of fulfillment center exits in markets where Kroger does not operate stores, the sale of Vitacost and the discontinuation of Ship Marketplace, according to a footnote in the retailer’s earnings release.
“Our ecommerce business continued to be an important growth driver and one of the key ways we attract new households,” Sargent told investors.
Kroger’s ecommerce and pharmacy led sales growth, according to chief financial officer David Kennerley.
For its full-year 2025, Kroger generated more than $16 billion in ecommerce sales. At the same time, it completed what it referred to as an “ecommerce strategic review.”
It expects that review to lead to $400 million in ecommerce operating profit improvement in 2026. Kroger said that the review will also “establish a path to ecommerce profitability.”
As part of that review, Kroger created a hybrid fulfillment model in which it uses last-mile delivery providers DoorDash, Instacart and Uber Eats to fulfill ecommerce orders.
Kennerley said Kroger is lowering its cost to serve ecommerce orders by fulfilling more orders out of stores that are closer to customers and by leveraging the above-mentioned third-party delivery providers.
Sargent said early results from Kroger’s new relationships with those companies “have exceeded what we originally planned.” He said the partnerships have extended Kroger’s reach to customers and shopping occasions the retailer would otherwise not have captured. Sargent said Kroger expects its convenience offerings with Instacart to lead to $1.5 billion in sales during 2026.
“Customers develop a lasting impression based on the quality of fresh foods, which is incredibly important as we accelerate ecommerce,” Foran said. “Get those right and we earn their confidence.”
How Kroger fits AI into its retail media approach
“Ecommerce growth also fuels our media business,” Sargent said. “More customers shopping online means more impressions, more data and more value for our advertising brands. That connection between ecommerce and media is key to how we accelerate profitability, and we see significant runway ahead.”
Kroger announced that it has created a new role for Milen Mahadevan to lead its artificial intelligence (AI) work across the company. Mahadevan previously served as president of 84.51°, a part of Kroger’s retail media team. In August 2025, Kroger announced organizational changes for its retail media operations and more under its Kroger Precision Marketing division.
Sargent said Kroger sees AI as creating a “meaningful opportunity” to improve customer experience and business productivity. He said the retailer has already seen positive results using it to create more competitive pricing, improve shrink and fulfill deliveries faster.
“We have the data, we have the customer relationships, and we have the platform,” Foran said. “As ecommerce grows and our digital capabilities expand, we see a long runway to accelerate growth.”
Kroger plans to expand those capabilities while delving further into the agentic AI space, Sargent said. The retailer is tasking Mahadevan with leading and accelerating that work, according to Sargent.
“Beyond new stores, our capital investments will support technology and AI, where we are investing aggressively,” Kennerley said.
He identified the investments as serving two purposes:
- Improving the customer experience.
- Driving productivity throughout the company.
“This year, we’re introducing agentic AI shopping for our customers, which will help them discover items, build baskets, plan meals and stay within budgets, all in a personalized way,” Kennerley said. “We’re also investing in supply chain modernization with more automation and expanded capacity.”
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s our last update on Kroger digital sales.
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