In November 2025, Kroger expanded its partnership with Instacart, making it the primary delivery partner for nearly 2,700 stores. This collaboration includes the launch of the AI-powered Cart Assistant on the Kroger iOS app, enhancing personalized shopping and meal planning options. This strategy aims to boost convenience and digital engagement, while integrating advanced retail media to connect brands with consumers. Despite these advancements, Kroger faces significant challenges in e-commerce profitability amid rising costs and intense competition. Kroger anticipates $158.1 billion in revenue and $3.3 billion in earnings by 2028, assuming a 2.5% annual growth rate. Analysts estimate Kroger’s fair value between $75.73 and $86.94, indicating potential upside but highlighting ongoing margin pressures. The introduction of digital features like the AI Cart Assistant represents a crucial catalyst for Kroger’s future in digital grocery, yet profitability in this realm remains unresolved. Explore more on Kroger’s investment potential with Simply Wall St.
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